Maharashtra Electricity Duty Act, 2016: s.3(2)(iii) – Exemption from electricity duty under – Entitlement of charitable institutions running the educational institutions – Held: Under 2016 Act, electricity duty 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 run by any local bodies shall alone be exempted from levy of electricity duty – The State Government and the Central Government are also specifically excluded from payment of electricity duty – However, the public sector undertakings are not exempted from payment of electricity Act – Therefore, under s.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 s.3(2)(iiia) of the 1958 Act – The language and words used in s.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.
Interpretation of statutes: Where the words are clear and unambiguous, recourse cannot be had to principles of interpretation other than the literal view – 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 – Maharashtra Electricity Duty Act, 2016 – s.3(2)(iii).
Allowing the appeal, the Court
HELD: 1. As per Section 16 of the 2016 Act, on coming into force of the 2016 Act, the Maharashtra Electricity Duty Act, 1958 stood repealed subject to the eventualities mentioned in Section 16 of the 2016 Act.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 sub-section (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, sub- section (2) of Section 3 of the 2016 Act shall have to be applied and shall be applicable. [Para 11.1][178-D-E]
2. As per sub-section (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 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. However, 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. [Paras 11.2, 11.3][178-E-H; 179-A-D]
3. Where the words are clear and unambiguous, recourse cannot be had to principles of interpretation other than the literal view. 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). [Para 11.4][179-G-H; 180-A]
4. 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 intention of the legislature as per Section 3(2) of the 2016 Act, is very clear and unambiguous that the electricity duty shall not be leviable on the consumption charges or energy consumed (i) by the State Government excluding the public sector undertakings; (ii) by the Central Government excluding public sector undertakings and (iii) run by the local bodies constituted under any law for the time being in force in the State of Maharashtra. 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. [Para 12][180-B-D]
Commr. of Customs v. Dilip Kumar & Co. (2018) 9 SCC
1 : [2018] 7 SCR 1191 – followed.
Essar Steel India Ltd. & Anr. v. State of Gujarat & Anr., (2017) 8 SCC 357 : [2017] 4 SCR 767; Novopan India Ltd. v. CCE and Customs, 1994 Supp (3) SCC 606 : [1994] 3 Suppl. SCR 549; Hansraj Gordhandas v. H.H. Dave, Assistant Collector of Central Excise Customs, Surat & Ors., AIR 1970 SC 755 : [1969] SCR 253; Star Industries v. Commr. of Customs (Imports) (2016)
2 SCC 362 : [2015] 11 SCR 570; Giridhar G. Yadalam v. Commissioner of Wealth Tax & Another (2015) 17 SCC 664 : [2015] 15 SCR 543; Godrej & Boyce Mfg. Co. Ltd. v. Deputy Commissioner of Income Tax & Anr., (2017) 7 SCC 421:[ 2017] 3 SCR 602 – relied on.
Central Public Information Officer, Supreme Court of India v. Subhash Chandra Agarwal, (2020) 5 SCC 481: [2019] 16 SCR 424; C.W.S. (India) Ltd. v. Commissioner of Income Tax, 1994 Supp (2) SCC 296 : [1994] 2 SCR 247; B.R. Enterprises v. State of U.P. & Ors. (1999) 9 SCC 700 : [1999] 2 SCR 1111; Byram Pestonji Gariwala v. Union Bank of India & Ors. (1992) 1 SCC 31 : [1991]
1 Suppl. SCR 187; Collector of Central Excise, Bombay-I & Anr. v. Parle Exports (P) Ltd., (1989) 1 SCC 345 : [1988] 3 Suppl. SCR 933; Union of India & Ors. v. Wood Papers Ltd. & Anr. (1998) 4 SCC 256 – referred to.
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