Settlement Act is self-contained code; post-payment under scheme, no outstanding dues exist for MVAT refund adjustment from prior period against settled subsequent period demand.

JUDGMENT :

AARTI SATHE, J.

1. Rule. Rule made returnable forthwith. By consent of the parties, taken up for final hearing at the stage of admission.

2. By this Petition under Article 226 of the Constitution of India, the Petitioner seeks to challenge the settlement order dated 18^th April 2024 passed by Respondent No. 2 whereby the refund for the tax period 2007-08 has been adjusted against the tax demand for the tax period 2008–09. According to the Petitioner, such adjustment has been made despite there being no pending dues for recovery, by invocation of the proviso to Section 50(1) of the Maharashtra Value Added Tax Act, 2002 (“MVAT Act”) which is wholly unjustified.

3. It would be convenient to reproduce the prayers as sought for in the present the Petition :

“a. This Hon'ble Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ or direction in the nature of Mandamus under Article 226 of the Constitution of India, setting- aside and annulling the Settlement Order which was issued after the adjustment of refund for Tax Period: 2007-08 against Tax Period:2008-09 ignoring the fact that there were no pending" dues for recovery' so as to justify invocation of refund adjustment under the Proviso appended to Section 50(1) of the MVAT Act, 2002 as the Petitioner had already made an application for availing benefits under the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Act, 2023 before issuance of the refund adjustment order.

b. This Hon'ble Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ or direction in the nature of Mandamus under Article 226 of the Constitution of India, setting- aside and annulling the setting- aside and annulling the Settlement Order which was issued after the adjustment of refund for Tax Period: 2007-08 against Tax Period: 2008-09 without issuance of any defect notice and after the Petitioner had already made an application and had also paid the settlement dues under the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Act, 2023 as per instructions received in the Courtesy Letter issued by Respondent No. 2.

c. This Hon'ble Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ or direction in the nature of Mandamus under Article 226 of the Constitution of India, setting-aside and annulling the setting- aside and annulling the Settlement Order which was issued after the adjustment of refund for Tax Period:2007-08 against Tax Period: 2008-09 ignoring that the provisions of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Act, 2023 would override the provisions of the MVAT Act, 2002 once an application has been made under the Scheme and no deficiency by way of Defect Notice has been issued.

d. This Hon'ble Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ or direction in the nature of Mandamus under Article 226 of the Constitution of India, setting-aside and annulling the Settlement Order which was issued after the adjustment of refund for Tax Period: 2007-08 against Tax Period:2008-09 without providing a reasonable opportunity of being heard resulting in grave violation of principles of natural justice.

e. This Hon'ble Court may be pleased to issue a Writ of Mandamus or any other appropriate Writ or direction in the nature of Mandamus under Article 226 of the Con