Charitable trusts providing social services are entitled to seek retrospective exemption from electricity duty under state regulations.

The petitioner, Sadvichar Parivar, is a charitable trust engaged in running hospitals, nursing centers, and Primary Health Centres

Historically, the petitioner was not charged electricity duty. However, at the insistence of the State Government, Respondent No. 2 (Uttar Gujarat Vij Company Limited) began demanding electricity duty because the petitioner failed to produce a valid exemption certificate from the State

While Respondent No. 2 eventually granted an exemption starting from 11.11.2025, it refused to grant retrospective relief from 2010 onwards

The petitioner challenged the communication dated 06.03.2026 seeking a declaration that no duty is payable for the prior period

1. Whether the petitioner, as a charitable trust, is entitled to a retrospective exemption from electricity duty from the year 2010 onwards based on its non-commercial activities

The court applied Article 226 of the Constitution of India regarding the High Court's writ jurisdiction and the provisions of the Gujarat Electricity Duty Act

The core legal principle relied upon is that entities engaged in social services and non-commercial activities under charitable trust status may be eligible for statutory exemptions from electricity duty, provided they satisfy the State's criteria for such relief

The Court examined the nature of the petitioner’s activities, noting that it provides social services through hospitals and health centers rather than commercial operations

The Court observed that while Respondent No. 2 recognized the exempt status from 2025, the grievance lay in the denial of relief for the period between 2010 and 2025

Rather than adjudicating the exemption directly, the Court reasoned that the State Government (Respondent No. 1) is the appropriate authority to determine retrospective eligibility

The Court emphasized that the State must specifically consider the petitioner's charitable nature and the absence of commercial motives when deciding on the retrospective application of the duty exemption

The Court ordered Respondent No. 1 to consider and decide the application for exemption from 2010 onwards in accordance with law, taking into account the petitioner’s charitable status

Crucially, the Court directed that no recovery of past electricity duty shall be made against the petitioner until the State Government renders its decision

Rule was made absolute to this extent