PASHUPATI TRADING CO. PVT. LTD. Vs. ELECTRICAL INSPECTOR

JUDGEMENT

(1.) Both these petitions relate to the same cause, same premises and same machinery, except that the petitioner M /s Pashupati Trading Company, was the former owner in respect of the said premises and the petitioner M /s Janata Construction Company are the subsequent owners. Since identical questions are involved on the same set of facts, both these petitions can be disposed of by this common order.

(2.) The controversy in these petitions resolves around one question viz. whether an undertaking carrying business of a cold storage is an industrial undertaking or commercial undertaking within the meaning of the Bombay Electricity Duty Act 1958?

(3.) The answer to this question will resolve the controversy. However, to appreciate the contentions involved a brief narration of the relevant facts would be necessary. All the facts are not in dispute. In the State of Maharashtra, there is an Act known as the Bombay Electricity Duty Act 1958, hereinafter referred to as the "Act", and the Statute is merely a taxing Statute for the purposes of levying of electricity duty on the electricity consumed by various types of consumers. It charges different rates of electrical duty on electricity consumed for residential purposes, commercial purposes or industrial purposes. To the said Act a schedule has been attached which gives the different rates of duty applicable to different consumers. In these petitions we are concerned with Part B and Part G of the said Schedule. Part B of the schedule gives the duty to be paid for electricity used in respect of premises used for business, trade, commercial or professional purposes but (excluding air conditioned cinema houses and air conditioned theatres). The duty chargeable for such commercial establishment ranges between 15 paise to 20 paise, but for some commercial establishments by a special notification a concessional rate of 3 paise per unit has been levied. As regards Part G is concerned, the rate as applicable for electricity consumed for premises used for industrial purposes and the duty charged is 1 paise per unit. Obviously the scheme of the Act is to encourage the promotion of industries and hence the less duty is chargeable to the industrial units.