Charitable educational institutions not exempted from electricity charges in Maha: SC

The bench said the intention of the legislature as per Section 32 of the Maharashtra Electricity Act of 2016, is very clear and unambiguous that the electricity duty shall not be leviable on the consumption charges or energy consumed by the state government, excluding the public sector undertakings, by the central government, excluding public sector undertakings and institutions run by the local bodies constituted under any law for the time being in force in the state.

The Supreme Court on Friday held charitable education institutions registered under the Societies Registration Act and the Maharashtra Public Trusts Act are not exempted from payment of electricity consumption charges in the state. The top court said where the words in statute are clear and unambiguous, recourse cannot be had to principles of interpretation other than the literal view. A bench of Justices M R Shah and Sanjiv Khanna said the Bombay High Court has committed a grave error in setting aside the levy of electricity duty on the charitable educational institutions run and managed by Shri Vile Parle Kelvani Mandal, a society registered under the Societies Registration Act, 1860 and also a public charitable trust registered under the Maharashtra Public Trusts Act, 1950. The bench said the judgement of the High Court dated February 28, 2019, is unsustainable both, on law and on facts, and the same deserves to be dismissed. "In view of the above and for the reasons stated above, the present Appeal Succeeds. The impugned judgment and order dated February 28, 2019 passed by the High Court is hereby quashed and set aside and it is held that the original writ petitioners - respondents No 1 to 10 herein-charitable education institutions registered under the Societies Registration Act and the Maharashtra Public Trusts Act, are not exempt from levy/payment of electricity duty….", the bench said.

The top court said if the arguments of the charitable educational institutions are to be accepted that as per the provisions with respect to all the schools/colleges or institutions, imparting education or training, the electricity duty is not leviable, in that case it would lead to absurd result. "In that case, even the private hospitals, nursing homes, dispensaries and clinics that are profit-making entities shall also claim the exemption from levy of electricity duty,'' it said. The bench said the intention of the legislature as per Section 3(2) of the Maharashtra Electricity Act of 2016, is very clear and unambiguous that the electricity duty shall not be leviable on the consumption charges or energy consumed by the state government, excluding the public sector undertakings, by the central government, excluding public sector undertakings and institutions run by the local bodies constituted under any law for the time being in force in the state. Other than the state government, central government and the local bodies and the government hostels, no exemption from payment of electricity duty has been provided, the bench noted.

"Therefore, under Section 3(2) of the 2016 Act, the charitable institutions running the educational institutions are not exempted from payment of electricity duty, which as such was specifically exempted under Section 3(2)(iiia) of the 1958 Act,'' it said. The top court said the language and words used in Section 3(2) are plain and simple and are capable of only one definite meaning that there is no exemption provided under the 2016 Act from levy of electricity duty so far as the charitable education institutions are concerned. "As observed herein above where the words are clear and unambiguous, recourse cannot be had to principles of interpretation other than the literal view,'' it said. The bench said the exemption provision needs to be interpreted literally and when the language used in the exemption provision is simple, clear and unambiguous, the same has to be applied rigorously, strictly and literally. The Maharashtra government had come in appeal to the apex court against the Bombay High Court order which granted the charitable education institution exemption from payment of levy of electricity consumed by these establishments. PTI MNL SRY

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)