TaxTMI 
TaxTMI 
1996 (2) TMI 570
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....ng the premises falling under Category under 'C' the Bombay Electricity Duty Act raised a bill for payment of electricity duty. The respondents being aggrieved by the said billing filed writ petition in the Bombay High Court contending inter alia that the premises having been used as guest houses for the occupation of the employees of the company, the same could not have been categorized as Category 'R' and the order of the Municipal Corporation is invalid and inoperative. The appellant - Municipal Corporation in its return filed before the learned Single Judge took the stand that the tariff under Category 'R' is exclusively meant for premises used as 'private residential premises' and tariff under Category &....
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....e expression "exclusively used as a private residential premise" must be read as opposed to "public". It further came to hold that since guest house maintained by the company is not a business proposition it cannot be held to be for commercial purpose and unless the premises is used for any commercial purposes then the same cannot be categorized as 'C'. With this conclusion the judgment of the learned Single Judge has been reversed and the appeals having been allowed, the present appeals by special leave have been filed in this Court. Mr. Reddy, learned Additional Solicitor General appearing for the appellant contended that the Division Bench of the Bombay High Court totally misconstrued the expression "exc....
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....ory 'R'. In view of the rival submissions at the bar the question that arises for consideration is, what is the true meaning of the expression "exclusively used as a private residential premises'? A premise to come within Category 'C' Part I to the Schedule of Electricity Tariff must be a premise which is exclusively used as a private residential premise. It is a cardinal principle of Construction of a Statute that the words must be given its natural meaning and must be understood in its ordinary or popular sense and each word must have its play. Natural and ordinary meaning of the words should not be departed from unless it is shown that the context in which the words are used requires a different meaning. Under t....
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....used as a residential premises which in other words would mean where the premise which is used by any person privately for its own residence for a sufficiently continued period and not a premise where a person can come and spend a day or a night and then go back. The guest houses are maintained by company or commercial undertaking on the other hand is a part of its commercial venture and such premises by no stretch of imagination can be held to be meant for exclusive use as private residential premises. The Division Bench of Bombay High Court in our considered opinion committed serious error in applying the test of profit making as well as the test of use of the word 'private' in contradistinction to 'public', which in our o....