SADVICHAR PARIVAR vs. STATE OF GUJARAT

SCA/3635/2026HC GujaratGJHC24018499202608 May 2026Bench: HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court directed the petitioner to approach the State Government (Respondent No. 1) for exemption from electricity duty. The Court acknowledged the petitioner as a charitable trust providing social services and not engaged in commercial activities. Respondent No. 1 was instructed to consider the petitioner's case for exemption from 2010 onwards, taking into account their charitable nature and non-commercial activities. The Court also ordered that no recovery of past electricity duty should be made from the petitioner until a decision is taken by Respondent No. 1. The petition was disposed of with these directions, and the rule was made absolute to the extent of these directions. The specific question of whether the petitioner was liable for duty prior to 11.11.2025 was not definitively decided but was remitted to the State Government for consideration of retrospective exemption.

What were the facts?

The petitioner, Sadvichar Parivar, a charitable trust running hospitals and other social services, filed a Special Civil Application challenging a communication dated 06.03.2026 from Uttar Gujarat Vij Company Limited (Respondent No. 2). Previously, no electricity duty was charged. However, Respondent No. 2 began demanding electricity duty, citing the absence of an exemption certificate from the State Government (Respondent No. 1). While Respondent No. 2 granted exemption from 11.11.2025, the petitioner sought retrospective exemption from 2010 onwards. The petitioner argued they are a charitable trust providing social services and not engaged in commercial activities, and have an exemption under the Income Tax Act. The petition seeks quashing of the communication and a declaration that no electricity duty is payable.

What were the issues?

1. Whether the petitioner, a charitable trust providing social services, is liable to pay electricity duty for the period prior to 11.11.2025, despite being engaged in non-commercial activities and having an Income Tax exemption. (Question of law and fact, concerning the Gujarat Electricity Duty Act). Assessee's Contentions: - The petitioner is a charitable trust running hospitals and nursing centres, engaged in social services and not commercial activities. - No electricity duty was charged for earlier periods. - They have been granted an exemption under the Income Tax Act. - They sought retrospective exemption from 2010 onwards. Revenue's Contentions: - Respondent No. 2 (Uttar Gujarat Vij Company Limited) demanded electricity duty due to the absence of an exemption certificate from the State Government. - Respondent No. 2 granted exemption only from 11.11.2025.

Which sections of the Income-tax Act were involved?

Articles 226

AI-generated summary — verify with the full judgment below

C/SCA/3635/2026 JUDGMENT DATED: 08/05/2026 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/SPECIAL CIVIL APPLICATION NO. 3635 of 2026

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

========================================================== Approved for Reporting Yes No ========================================================== SADVICHAR PARIVAR Versus STATE OF GUJARAT & ANR. ========================================================== Appearance: AMRITA PATEL FOR MS KRISHA M BHIMANI(12795) for the Petitioner(s) No. 1 MR VAIBHAV SHARMA AGP for the Respondent(s) No. 1 MR DIPAK R DAVE(1232) for the Respondent(s) No. 2 ========================================================== CORAM:HONOURABLE MR. JUSTICE HEMANT M. PRACHCHHAK

Date : 08/05/2026

JUDGMENT 1. RULE. Learned counsel appearing waives service of notice of rule on behalf of the respective respondents. 2. With the consent of learned counsel for the respective parties, the matter is taken up for hearing and disposal. 3. Present petition is filed by the petitioner under Articles 226 of the Constitution of India and under the provisions of the Gujarat Electricity Duty Act seeking the following reliefs:- Page 1 of 4

C/SCA/3635/2026 JUDGMENT DATED: 08/05/2026 “(A) that the Hon’ble Court be pleased to issue a writ of mandamus / certiorari and/or other writ in the nature of mandamus / certiorari or any otehr appropraite writ quashing and setting aside the communication dated 06.03.2026 issued by teh Uttar Gujarat Vij Company Limited, Respondent No.2 and declare that no electricity duty is payable by the petitioner. (B) that pending the hearing and final disposal of this petition, the Hon’ble Court be pleased to stay the communication dated 06.03.2026 issued by Uttar Gujarat Vij Company Limited, Respondent No.2. (C) For ad interim relief in terms of paragraph (B); (D) For costs; (E) For such other and further reliefs as may be deemed appropriate by this Hon’ble Court in the present circumstances. “ 4. Heard Amrita Patel, learned counsel on behalf of Ms Krisha M Bhimani, learned counsel for the petitioner and Mr. Vaibhav Sharma, learned AGP for respondent no.1 and Mr. Dipak Dave, learned counsel for respondent no.2. Perused the material placed on record. 5. I have heard the learned counsel for the respective parties and have perused the materials placed on record. It appears that the petitioner is a charitable trust running hospitals, nursing Page 2 of 4

C/SCA/3635/2026 JUDGMENT DATED: 08/05/2026 centres, Primary Health Centres and doing other charitable activities. For the electricity used by the petitioner during earlier period, no electricity duty was charged from the petitioner. Subsequently, at the insistance of the State Government, the respondent authority has charged and demanded the electricity duty since no certificate was produced by the petitioner with regard to exemption granted by the State and therefore, the case of the petitioner was not considered by the respondent no.2. The petitioner approached respondent no.2 for considering the case for exemption and their case was considered by the respondent no.2 from 11.11.2025; however the petitioner requested that relief may be granted from earlier period onwards. Considering the submissions of the concerned parties and after considering the facts, the petitioner was granted an exemption under the Income Tax Act and respondent no.2 granted an exemption after 2025 but prior thereto i.e. from 2010 onwards they have not considered the case of the petitioner for exemption and therefore, the present petition is filed by the petitioner. 6. Considering the facts and circumstances of the case and the averments made in the petition and the submissions canvassed by the respective parties, this Court is of the opinion that the petitioner shall approach the State i.e. respondent no.1 for the exemption in payment of electricity duty as they are a charitable trust and providing social services and are not carrying out commercial activities. The case of the petitioner shall be considered by the respondent authority for exemption in payment of electricity duty from 2010 onwards. The respondent no.1 will consider and decide the same in accordance with law Page 3 of 4

C/SCA/3635/2026 JUDGMENT DATED: 08/05/2026 and grant the exemption in favour of the petitioner from retrospective effect as they have prayed for. While adjudicating the case of the petitioner, respondent no.1 shall consider the fact that the petitioner is a charitable trust and providing social services and are not carrying out commercial activities. Till the decision is not taken by respondent no.1, no recovery is to be made against the petitioner for the past electricity duty. 7. With the aforesaid conclusion, the present petition is disposed of. Rule is made absolute to the extent. Direct service is permitted.

(HEMANT M. PRACHCHHAK,J) ANUSRI Page 4 of 4 Original copy of this order has been signed by the Hon'ble Judge. Digitally signed by: ANUSRI VASU(HC02352), ENGLISH STENO GRADE-II\, at High Court of Gujarat on 08/05/2026 18:03:56

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