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IN THE HIGH COURT OF JUDICATURE AT BOMBAY
G.S.KULKARNI, AARTI SATHE
President Trade And Exim Corporation – Appellant
Versus
State of Maharashtra, Through Government Pleader – Respondent
| Table of Content |
|---|
| 1. tax disputes history, assessments, refunds, settlement applications (Para 1 , 2 , 3 , 4) |
| 2. issue and parties' contentions on refund adjustment (Para 5 , 6 , 7 , 8 , 9) |
| 3. settlement act and mvat act key provisions (Para 10 , 11 , 12) |
| 4. settlement act self-contained amnesty scheme (Para 13 , 14 , 15 , 16) |
| 5. prohibits refund adjustment against settled dues (Para 17 , 18 , 19 , 20 , 21) |
| 6. precedents bar mvat adjustment post-settlement (Para 22 , 23) |
| 7. violates natural justice; precedents applicable (Para 24 , 25) |
| 8. quashes order; directs refund payment (Para 26) |
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 18th 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 Adde
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.
The court held that the adjustment of refunds across financial years is impermissible under the Settlement Act as no provision allows it; review orders invoking irrelevant statutory powers were quash....
The court emphasized that orders passed by administrative or quasi-judicial authorities are required to stand or fall on their own and subsequent explanations by way of affidavit(s) cannot be permitt....
The court ruled that under the Settlement Scheme, pre-deposits should not be deducted before applying tax waivers, ensuring fair treatment for taxpayers.
Point of Law : Tax - In absence of express words used to that effect, it is neither permissible nor required to read into the language of section 40 of the VAT Act, any word or introduce any meaning ....
The court ruled that under the Settlement Scheme, pre-deposits should not be deducted before applying tax waivers, ensuring fair computation of tax liabilities.
The main legal point established in the judgment is the interpretation of the eligibility criteria and key legal provisions under the Sabka Vishwas Scheme, 2019, to determine the petitioner's entitle....
In tax matters, entitlement to interest on delayed refunds, including on interest accrued, is affirmed, highlighting the principle that overdue amounts accrue additional interest.
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