Lawyer’s Chamber—Rates of Electricity and Municipal Taxes Whether Commercial Rates for Lawyers’ Chamber can be Charged for Electricity and Municipal taxes ?

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The Tax Publishers Lawyer's Chamber--Rates of electricity and municipal taxes Whether Commercial Rates for Lawyers' Chamber can be Charged for Electricity and Municipal taxes ? Akhilesh Kumar Sah There have been disputes regarding the electrical and municipal charges as per commercial rates for the lawyers' office in residence or their chambers in the court premises. The present article has taken the issue in brief. 1. Introduction Lawyers cannot take on commercial activity while exercising the profession of advocacy, therefore, electricity and municipal charges cannot be taken on commercial rates. However, sometimes authorities charge commercial rates from advocates. The matter is taken up with the help of judicial cases. In V Sasidharan v. Peter & Karunakar & Ors. (1984 AIR 1700 decided on 23-8-1984), the Supreme Court has held that the office of a lawyer or of a firm of lawyers is not a 'commercial establishment' within the meaning of section 2(4) of the Kerala Shops and Commercial Establishments Act, 1960. In Sajjan Raj Surana v. Jaipur Vidyut Nigam Ltd. (AIR 2002 RAJ 109 decided on 18-12-2001), the Rajasthan High Court has held that the first appellate court had committed error of law by not considering the significant aspect of settled law and erroneously held that the advocate/lawyer's chamber/office situated elsewhere is a commercial establishment. LMV1 generally denotes Domestic Light, Fan, and Power consumers, while LMV2 often represents Commercial Light and Power consumers. The main legislation governing electricity in Uttar Pradesh is The Uttar Pradesh Electricity (Duty) Act, 1952, which outlines the framework for levying a tax or duty on electricity consumption within the State. Additionally, the Electricity Act, 2003 is a central legislation that also applies to Uttar Pradesh, focusing on the broader aspects of electricity generation, transmission, distribution, and trading. The Uttar Pradesh Electricity Reforms Act, 1999 is another key piece of legislation that led to the establishment of the Uttar Pradesh Electricity Regulatory Commission (UPERC). 2. Analysis of a recent case In Tehsil Bar Association, Sadar Tehsil Parisar, Ghaziabad v. UP Power Corporation Ltd. & Ors. (Writ Civil No.2637 of 2023) decided by the Allahabad High Court on 3-8-2023, questions emerged for determination were that whether the activities/profession of an advocate is a commercial activity, which attract the commercial rate of electricity consumption and whether the Rate Schedule LMV-2, which was applicable for the commercial activities, can be applied for the electricity supplied to the Lawyers' Chambers and whether the respondents can discriminate between the electricity supply to the advocates' chambers in different court compounds. SUBSCRIBE FOR FULL CONTENT OR Try Reload the Page

The Tax Publishers

Lawyer's Chamber--Rates of electricity and municipal taxes

Whether Commercial Rates for Lawyers' Chamber can be Charged for Electricity and Municipal taxes ?

Akhilesh Kumar Sah

There have been disputes regarding the electrical and municipal charges as per commercial rates for the lawyers' office in residence or their chambers in the court premises. The present article has taken the issue in brief.

1. Introduction

Lawyers cannot take on commercial activity while exercising the profession of advocacy, therefore, electricity and municipal charges cannot be taken on commercial rates. However, sometimes authorities charge commercial rates from advocates. The matter is taken up with the help of judicial cases.

In V Sasidharan v. Peter & Karunakar & Ors. (1984 AIR 1700 decided on 23-8-1984), the Supreme Court has held that the office of a lawyer or of a firm of lawyers is not a 'commercial establishment' within the meaning of section 2(4) of the Kerala Shops and Commercial Establishments Act, 1960.

In Sajjan Raj Surana v. Jaipur Vidyut Nigam Ltd. (AIR 2002 RAJ 109 decided on 18-12-2001), the Rajasthan High Court has held that the first appellate court had committed error of law by not considering the significant aspect of settled law and erroneously held that the advocate/lawyer's chamber/office situated elsewhere is a commercial establishment.

LMV1 generally denotes Domestic Light, Fan, and Power consumers, while LMV2 often represents Commercial Light and Power consumers.

The main legislation governing electricity in Uttar Pradesh is The Uttar Pradesh Electricity (Duty) Act, 1952, which outlines the framework for levying a tax or duty on electricity consumption within the State. Additionally, the Electricity Act, 2003 is a central legislation that also applies to Uttar Pradesh, focusing on the broader aspects of electricity generation, transmission, distribution, and trading. The Uttar Pradesh Electricity Reforms Act, 1999 is another key piece of legislation that led to the establishment of the Uttar Pradesh Electricity Regulatory Commission (UPERC).

2. Analysis of a recent case

In Tehsil Bar Association, Sadar Tehsil Parisar, Ghaziabad v. UP Power Corporation Ltd. & Ors. (Writ Civil No.2637 of 2023) decided by the Allahabad High Court on 3-8-2023, questions emerged for determination were that whether the activities/profession of an advocate is a commercial activity, which attract the commercial rate of electricity consumption and whether the Rate Schedule LMV-2, which was applicable for the commercial activities, can be applied for the electricity supplied to the Lawyers' Chambers and whether the respondents can discriminate between the electricity supply to the advocates' chambers in different court compounds.

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SUBSCRIBE FOR FULL CONTENT

OR Try Reload the Page