MUNICIPAL CORPORATION OF GREATER BOMBAY vs MAFATLAL INDUSTRIES

The Supreme Court addressed the categorization of guest houses under the Bombay Electricity Duty Act, specifically interpreting the terms used in the tariff categories. The Court held that the Division Bench of the Bombay High Court erred in concluding that guest houses maintained by companies for employees could be classified under Category 'R' as private residential premises. The Court reaffirmed that such premises are commercial in nature and should be categorized under Category 'C', thus upholding the Municipal Corporation's billing. The judgment of the Bombay High Court was set aside, and the appeals were allowed.