JUDGMENT :

Dhananjaya Y. Chandrachud, J

1. Leave granted.

2. This appeal arises from a judgment and order of the High Court of Judicature at Bombay dated 8 November 2019.¹[WP No. 8834 of 2018]

3. The issue, which arises in the appeal, is whether amounts which have been deposited under protest prior to an order of assessment can be adjusted against the mandatory pre-deposit required for filing an appeal under Section 26(6A) of the Maharashtra Value Added Tax Act 2002²[“MVAT Act”].

4. The appellant is a public limited company which engages in the manufacture and sale of oleo-chemicals and personal care products. Between 15 November 2016 and 22 November 2016, an investigation was carried out by the officers of the Sales Tax Department at the premises of the appellant. A notice to show cause was issued on 22 November 2016, to which the appellant filed a reply contesting the proposed tax liabilities. On 8 December 2016 and 11 January 2017, the appellant made a protest payment of Rs 3,64,24,388, comprising an amount of Rs 2,32,37,249 towards tax and Rs 1,31,87,139 towards interest for Assessment Year³[“AY”] 2013-14. On 30 October 2017, a notice to show cause was issued to the appellant in rel