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2022 (2) TMI 720
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....nd manage by original writ petitioner No.1 - 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. That the writ petitioners have taken electricity connections for power supply to their education institutions from respective power supply companies. That prior to 01.09.2016, the charitable education institutions were exempted from payment of electricity duty levied on the consumption charges or the energy consumption for the purposes of or in respect of a school or college or institution imparting education or training, students' hostels, hospitals, nursing homes etc. as per Section 3(2)(iii) of the Maharashtra Electricity Duty Act, 1958. That in the year 2018, the respective electricity supply companies levied the electricity duty pursuant to a letter from the Industries, Energy and Labour Department, Government of Maharashtra stating that as per Maharashtra Electricity Act, 2016, charitable institutions registered under the Bombay Public Trusts Act, 1950 (now known as Maharashtra Public Trusts Act, 1950) for the purpose of or in respect of scho....
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....nits of energy consumed. It is submitted that however, on enactment of the Maharashtra Electricity Duty Act, 2016 which repealed the earlier the Maharashtra Electricity Duty Act, 1958, no such exemption from levy/payment of electricity duty has been provided to such charitable education institutions. 4.4 It is submitted that the High Court has failed to consider there is no provision, similar to the Repealed Act of 1958 (the Maharashtra Electricity Duty Act, 1958) in the new Act, 2016 (Maharashtra Electricity Duty Act, 2016), and the charitable education institutions whether registered before or after coming into the new Act of 2016, are not entitled to the exemption from payment of electricity duty. 4.5 It is further submitted that the High Court has not properly appreciated or considered that by virtue of the statutory provisions under the Repealed Act of 1958, the charitable education institutions were enjoying concession from payment electricity consumption duty/ electricity consumption charges and therefore there was no need to issue a specific order in their favour under the Repealed Act of 1958. It is submitted that therefore, if any order had been issued by the depart....
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....xempted from payment of electricity duty. 6.2 It is submitted by Shri Naphade, learned Senior Advocate appearing on behalf of the original writ petitioners that as observed by this Court in the case of C.W.S. (India) Ltd. Vs. Commissioner of Income Tax, 1994 Supp (2) SCC 296 (para 10), where a literal interpretation leads to absurd result, the wording of the statute can be modified to accord with the intention of the legislature and to avoid absurdity. 6.3 It is submitted that if the interpretation canvassed by the state is accepted then it will lead to absurdity and manifest injustice as school/colleges etc. run by the local authority will fall within the purview of Section 3(2)(iii) of 2016 Act, while those run by the statutory university or charitable institution registered under Bombay Trusts Act, 1950 (now known as Maharashtra Public Trusts Act, 1950), would fall outside the ambit of Section 3(2)(iii). It is submitted that as such there is no essential difference between schools/colleges etc. run by the statutory university or institution registered under the Maharashtra Public Trusts Act, 1950 and those run by the local authority. It is submitted that such absurdity or ....
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....htra Electricity Duty Act, 1958 (1958 Act) and the Maharashtra Electricity Duty Act, 2016 (2016 Act). It is submitted that under Section 3(2) of 1958 Act, no duty could be imposed on the following entities: (a) Government of Maharashtra [Section 3(2)(i)] (b) Local authorities carrying on specified activities [Section 3(2)(ia)] (c) Licensee carrying on specified activities [Section 3(2)(ib)] (d) Tramway company [Section 3(2)(ii)] (e) Entity generating electricity for the purpose of supplying it for the use of vehicles and vessels. [Section 3(2)(iv)] Note under 1958 Act no duty could be imposed on the Central Government due to the provisions of Article 285 of the Constitution. 6.6.1 It is further submitted that under Section 3(2) of 2016 Act no duty can be imposed on the following entities: (a) State Government [Section 3(2)(i)] (b) Central Government [Section 3(2) (ii)] This is by way abundant caution as no duty can be imposed on the Central Government due to Article 285 of the Constitution. (c) Licensee carrying on specified activities. [Section 3(2) (v)] (d) Generating Co....
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....city for construction, maintenance and operation of any generating, transmitting and distrusting system by licensee. [See Section 3(2)(ib) of 1958 Act and Section 3(2)(v) of 2016 Act. (c) Generation of electricity for the purpose of supplying for the use of vehicles or vessels [See Section 3(2)(iv) of 1958 Act and Section 3(2) (vii) of 2016 Act. (d) Generation of electricity at a voltage not exceeding 100 volts [See Section 3(2)(v) of the 1958 Act and Section 3(2)(viii) of 2016 Act. 6.11 It is submitted that thus entities who are not subject to imposition of duty have remained the same, both under 1958 Act and 2016 Act and that other activities enumerated herein above have remained same, both under 1958 Act and 2016 Act. It is submitted that therefore, it is difficult to accept that in respect of educational activities a radical change is brought about by 2016 Act by excluding educational institutions run by statutory university or by charitable institutions. It is submitted that either it is a case of Casus Omissus or a case of bad drafting of 2016 Act. 6.12 It is submitted that 1958 Act clearly indicates that it was the policy of the legislature to exclude....
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....ng so the ambiguity has crept in drafting. It is submitted that the benefit of ambiguity must lean in favour of the assessee rather than the revenue. 6.15 Making the above submissions and relying on the decisions of this Court, it is prayed to dismiss the present appeal. 7. We have heard the learned counsel appearing on behalf of the respective parties at length. 8. The short question which is posed for the consideration of this Court is whether the original writ petitioners being charitable education institutions registered under the provisions of the Public Trusts Act (the Maharashtra Public Trusts Act, 1950) are entitled to the exemption from payment of electricity duty post 01.09.2016 i.e. as per the provisions of the Maharashtra Electricity Duty Act, 2016? 9. While answering the aforesaid question/issue, law on how to interpret and/or consider the statutory provisions in the taxing statute and the exemption notifications is required to be analysed first. 9.1 In the case of Dilip Kumar & Company (supra), fivejudge bench of this Court has held that in every taxing statute -- the charging, the computation and exemption provisions at the threshold stage should be in....
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....etching the words of the notification or by adding words to the notification. To interpret the exemption notification one should go by the clear, unambiguous wordings thereof. These principles were applied in Essar Steel India Ltd. & Anr. to deny benefit of Section 3(2)(vii)(a) of the 1958 Act, as the condition of generating energy jointly with another undertaking was not fulfilled. 9.3 In case of Star Industries, it was held that the eligibility criteria laid down for exemption notification is required to be construed strictly, and once it is found that applicant satisfies the same, the exemption notification should be construed liberally. Reference was made to the decision Novopan India Ltd. vs. CCE and Customs, 1994 Supp (3) SCC 606 and the Constitution Bench decision in Hansraj Gordhandas vs. H.H. Dave, Assistant Collector of Central Excise Customs, Surat & Ors. (supra), which decisions have been noted and elucidated by this Court in Dilip Kumar & Company. Therefore, in the context of exemption notification there is no new room for intendment. Regard must be to the clear meaning of the words. Claim to exemption is governed wholly by the language of the notification, wh....
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....se are: (i) In taxing statute, it is the plain language of the provision that has to be preferred where language is plain and is capable of one definite meaning. (ii) Strict interpretation to the exemption provision is to be accorded, which is the case at hand. (iii) The purposive interpretation can be given only when there is some ambiguity in the language of the statutory provision or it leads to absurd results. We do not find it to be so in the present case." 9.5 In the case of Godrej & Boyce Mfg. Co. Ltd. (supra), it is observed and held by this Court that where the words of the statute are clear and unambiguous, recourse cannot be had to principles of interpretation other than the literal view. It is further observed that it is the bounden duty and obligation of the court to interpret the statute as it is. It is further observed that it is contrary to all rules of construction to read words into a statute which the legislature in its wisdom has deliberately not incorporated. 10. Applying the law laid down by this Court in the aforesaid decisions to the facts of the case on hand, it is required to be considered whether post 01.09.2016 and on com....
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....blic Trusts Act, 1950, for the purpose of, or in respect of, school or college imparting education or training in academic or technical subjects (save in respect of premises used for residential purposes);" That thereafter the Maharashtra Electricity Duty Act, 2016 has been enacted, which has come into effect from 08.08.2016. Section 3 of the 2016 Act, relevant for our purpose reads as under: 3. (1) Subject to the provisions of subsection (2), there shall be levied and paid to the State Government, on the consumption charges or the units of energy consumed, a duty (hereinafter referred to as "Electricity Duty") at the rates classified as per the Tariff Schedule of the Commission, from time to time, on the basis of use of the premises by the consumer on whose name energy is supplied by the licensee, or a consumer who is consuming energy produced from an independent source other than that supplied by the licensee, for his own use as specified in the Schedules, which are based on the following classifications :-- (a) the consumption charges where energy is supplied by the licensee; Explanation.-- For the purpose of this subsection, "use of the premises by....
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..../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. 11.2 As per subsection (2) of Section 3 of 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 institution registered under the Bombay Public Trusts Act, 1950, for the purpose of, or in respect of, school or college imparting education or training in academic or technical subjects (save in respect of premises used for residential purposes) [Section 3(2)(iiia)]. Therefore, 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 n....
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....y 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. As observed hereinabove, 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). 12. If the submissions on behalf of the original writ petitioners is accepted that as per Section 3(2)(iii), 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, who are profit making entities shall also claim the exemption from levy of electricity duty. The intenti....