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2022 (2) TMI 720 - SC - Indian LawsExemption from payment of electricity duty, post 01.09.2016 or not - writ petitioners being charitable education institutions registered under the provisions of the Public Trusts Act (the Maharashtra Public Trusts Act, 1950) - Maharashtra Electricity Duty Act, 2016 - HELD THAT - As per Section 16 of the 2016 Act, on coming into force the 2016 Act, the Maharashtra Electricity Duty Act, 1958 stood repealed subject to the eventualities mentioned in Section 16 of the 2016 Act. None of the eventuality mentioned in proviso to Section 16 shall be attracted and/or applicable to the facts of the case on hand in view of the specific provisions providing for exemption from payment of the electricity duty as per subsection (2) of Section 3 of the 2016 Act. Therefore, for the purpose of exemption from payment of electricity duty on and after 01.09.2016, subsection (2) of Section 3 of the 2016 Act shall have to be applied and shall be applicable. Under the 1958 Act, the electricity duty was not leviable on the consumption charges or the units of energy consumed by or in respect of charitable institutions for the purpose; in respect of school or college imparting education or training in academic or technical subjects. Even as per Section 3(2)(ia), electricity duty shall not be leviable on the consumption charges or the units of energy consumed by or in a respect of any municipal corporation, municipality, municipal committee, town committee, notified area committee, Cantonment Board, Zilla Parishad or village panchyat constituted under any law for the time being in force in the State, for the purpose of, or in respect of a school or college imparting education or training in academic or technical subjects, a hospital, nursing home, dispensary, clinic, public street lighting, public water works and system of public sewers or drains (save in respect of premises used for residential purposes - there are material changes under the 2016 Act. As per Section 3(2) of the 2016 Act, even the public undertakings are liable to pay the electricity duty. As per Section 3(2)(iii), electricity duty is not leviable on the consumption charges or energy consumed, for the purposes of, or in respect of a school or college or institution imparting education or training, student s, hostels, hospitals, nursing homes, dispensaries, clinics, public streets lighting, public water works, sewerage systems, public gardens including zoos, public museums, administrative offices forming whole or, as the case may be, a part of system run by any local bodies constituted under any law for the time being in force in the State of Maharashtra. Therefore, Section 3(2)(iiia), which was there in 1958 Act, is now conspicuously and deliberately absent in Section 3(2) of the 2016 Act. The exemption provision need to be interpreted literally and when the language used in exemption provision is simple, clear and unambiguous, the same has to be applied rigorously, strictly and literally. Under the 2016 Act, charitable education institutions running the schools or colleges are specifically excluded from the exemption clause/exemption provision, Section 3(2). The original writ petitioners charitable education institutions registered under the provisions of the Societies Registration Act and/or under the Maharashtra Public Trusts Act, are not entitled to any exemption from levy/payment of the electricity duty on or after 08.08.2016 i.e. from the date on which the Maharashtra Electricity Duty Act, 2016 came into effect. Therefore, the High Court has committed a grave error in setting aside the levy of electricity duty levied on the original writ petitioners respondents No.1 to 10 herein - Appeal allowed.
Issues Involved:
1. Exemption from payment of electricity duty for charitable educational institutions. 2. Interpretation of statutory provisions in taxing statutes and exemption notifications. 3. Applicability of the Maharashtra Electricity Duty Act, 2016, and its comparison with the repealed Maharashtra Electricity Duty Act, 1958. Issue-wise Detailed Analysis: 1. Exemption from Payment of Electricity Duty for Charitable Educational Institutions: The original writ petitioners, charitable educational institutions, were previously exempt from paying electricity duty under Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958. However, post-01.09.2016, the Maharashtra Electricity Duty Act, 2016, came into effect, and the respective power supply companies levied electricity duty on these institutions. The High Court initially ruled in favor of the writ petitioners, exempting them from the duty. The State of Maharashtra appealed against this decision, arguing that the new Act did not provide such exemptions. 2. Interpretation of Statutory Provisions in Taxing Statutes and Exemption Notifications: The Supreme Court emphasized the need for strict interpretation of taxing statutes and exemption notifications. It referenced several precedents, including Dilip Kumar & Company, Essar Steel India Ltd., and Star Industries, which established that exemption provisions must be interpreted strictly and literally. The Court noted that ambiguity in charging provisions should favor the assessee, but exemption provisions must be clear and unambiguous. 3. Applicability of the Maharashtra Electricity Duty Act, 2016, and Comparison with the Repealed Maharashtra Electricity Duty Act, 1958: The Court examined the differences between the 1958 Act and the 2016 Act. Under the 1958 Act, charitable institutions were exempt from electricity duty. However, the 2016 Act did not include a similar provision for charitable educational institutions. Section 3(2)(iii) of the 2016 Act exempted only institutions run by local bodies, excluding charitable institutions. The Court found that the language of the 2016 Act was clear and unambiguous, indicating a deliberate legislative intent to exclude charitable institutions from the exemption. Conclusion: The Supreme Court concluded that charitable educational institutions registered under the Societies Registration Act and the Maharashtra Public Trusts Act are not entitled to exemption from payment of electricity duty under the Maharashtra Electricity Duty Act, 2016. The Court held that the High Court erred in setting aside the levy of electricity duty on these institutions. Therefore, the appeal by the State of Maharashtra was allowed, and the High Court's judgment was quashed and set aside. The charitable educational institutions are required to pay the electricity duty as levied.
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