THE MUNICIPAL BOARD Vs. THE STATE OF UP

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution directed against the State of UP and the Electric Inspector to Government of UP for the issue of a writ of mandamus restraining them for demanding and collecting from the Petitioner any duty on energy consumed by the Petitioner for certain purposes.

(2.) IT appears that the Municipal Board, Unnao, the Petitioner obtained a licence under the Indian Electricity Act, 1910, to supply energy within an area of supply in the town of Unnao. The Municipal Board thus became a licensee and supplied electricity to the consumers it also consumed electricity for its own purpose such as running of water works, street lighting and for light and fans in their own offices. Under the U.P. Electricity (Duty) Act, 1952 (hereinafter referred to as the Act) a duty of 25 per cent is paid on the amount payable to the licensee by the consumers on account of the energy consumed by the consumers. The Act has defined a licensee and a consumer. In Section 2 of the Act, the definition of consumer is as follows:

(3.) THE question rests entirely on the interpretation which has to be out on the words 'commercial purposes' used in the explanation. Under the definitions given in the Act, a licensee cannot be a consumer. A licensee is something very different from a consumer, so that if we apply this definition to Unnao Municipal Board, it can, in no circumstances, be a consumer except, under the explanation, in certain matters. If there fore, the running of the water works by the Petitioner is for commercial purposes, any electricity consumed by the Petitioner -licensee for this purposes shall also be liable to payment of duty under the Act.