TaxTMI 
TaxTMI 
2016 (5) TMI 591
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....ised on the Petitioner by Respondent No.1, which is an electricity distribution company. The challenge is based entirely on a claim of incorrect categorization of the electricity meters installed at the Petitioner's premises. 2. The Petitioner is a public charitable trust running a public park and sports complex and has been consuming electricity distributed by Respondent No.1. The park and the complex are situated on a plot of land, which is owned by the Government of Maharashtra and which was handed over by it to the Brihanmumbai Municipal Corporation ('BMC') for creation of a garden and a playground. BMC, in turn, entered into an agreement of licence with the Petitioner for such development and maintenance. The whole park ....
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....titioner at the site, even as regards the sports complex, not being 'commercial', none of the meters could fall within the tariff item LTII. It is submitted that within the broad category of "Non-residential and commercial" are included Subitems (a) which is basically for commercial or business premises including shopping malls and (b) which is for entertainment establishments such as film studios, cinema halls, multiplexes, etc. Though recreation places are part of this latter category, the same cannot include public utility services such as athletic track, gymnasium and tennis court made available to public on payment of nominal fee on a nonprofit basis. 5. On the other hand, it is the case of Respondent No.1 that the categoriz....
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....de that issue. 7. At the outset it is important to note that any category of tariff fixed under the Electricity Act, 2003 is on the basis of 'usage' of electricity. The State Electricity Commission fixes tariff on the basis of such usage, namely, residential or Non-residential including commercial or industrial. For the purposes of supply of electricity by Respondent No.1, the State Commission has fixed tariff for various classes of customers based on such usage. Broadly, there are two main categories, namely, Low Tension ('LT') and High Tension ('HT'). Separate categories are fixed within the broad categories of LT and HT. In LT tariff, separate categories are made for Residential (LT I), Non-residential or Comme....
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....lights, public fountains, other such common public places, irrespective of whether such facilities are being provided by the Government of the Municipality, or Port Trust or other private parties." 8. As far as the public garden maintained by the Petitioner is concerned, the electricity used therein has been correctly categorised under LTVI, which includes lighting in public gardens. Even if the garden contains public utilities such as lavatories, security cabin, etc., considering the predominant use of electricity for lighting in public garden, it squarely falls under LTVI, which is for the broad category of 'Street Lights'. The controversy concerns the two other meters recording use of electricity in the sports complex, which a....
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.... educational institution existing solely for educational purposes and "not for purposes of profit". The question was, when can an activity be said to be 'not for profit'. It was held that if the activity is primarily for educating persons, the fact that the institution makes a surplus/profit does not make the institution as one existing for the purposes of profit. The law stated therein has no bearing on our facts. Krishan Lal Gera vs. State of Haryana AIR 2011 Supreme Court 2970 considered the distinction between a recreation club and a sports club again a matter which has no bearing on the controversy in this petition. Director of Income Tax (Exemption) vs. Goregaon Sports Club Itxa 6301 2010 dated 14 February 2012, Coram : Dr. D.....