MAHARASHTRA VALUE ADDED TAX ACT, 2002

Act, No. IX Of 2005

1st April 2005

An Act to consolidate and amend the laws relating to the levy and collection of tax on the sale 1[***] of certain goods in the State of Maharashtra. WHEREAS it is expedient to consolidate and amend the laws relating to the levy and collection of tax on the sale 1[***] of certain goods in the State of Maharashtra: it is hereby enacted in the Fifty-third year of the Republic of India, as follows:- 1. Omitted by Maharashtra Act No. 42 of 2017, dated 29.5.2017.

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S.1 Introduction

(1) This Act may be called the Maharashtra Value Added Tax Act, 2002 .

(2) It extends to the whole of the State of Maharashtra.

2[(3) It shall come into force on the 1st April 2005 (Mah. IX of 2005).]

1. Enforcement date appointed by the Mah. Act No. XIV of 2005, w.e.f. .1.04.2005.

2. Substituted by the Maharashtra Value Added Tax (Levy And Amendment) Act, 2005 for the following :- "(3) It shall come into force with effect from such date 1 as the State Government may appoint by notification in the Official Gazette."

S.2 Definitions

In this Act, unless the context otherwise requires,-

17[***]

16[(3-b) "appointed date for the Maharashtra Goods and services Tax Act" means the date on which the Maharashtra Goods and Services Tax Act, 2017 comes into force;]

(4) "business" includes, --

• (a) any service;
• (b) any trade, commerce or manufacture;
• (c) any adventure or concern in the nature of' service, trade, commerce or manufacture;

whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern is with a motive to make gain or profit and whether or not any gain or profit accrues from such service, trade, commerce, manufacture, adventure or concern.

Explanation. For the purpose of this clause,-

18[***]

• (ii) any transaction of sale or purchase of capital assets pertaining to such service, trade, commerce, manufacture, adventure or concern shall be deemed to be a
  

S.3 Incidence and Levy of Tax

(1) Every dealer, who, immediately before the appointed day, holds a valid or effective certificate of registration or license under any of the earlier laws or, as the case may be, who is liable to pay tax under any of the earlier laws, in the year ending immediately before the appointed day shall, if his turnover of sales or purchases has, in the said year under any of such earlier laws, exceeded rupees five lakh, or, as the case may be, if he is an importer in the said year and his turnover of sales or purchases in the said year had exceeded rupees one lakh, shall be liable to pay tax, with effect from the appointed day, in accordance with the provisions of this Act, till his certificate or licence is duly cancelled under this Act.

Explanation.-For the purposes of this sub-section, the expressions "turnover of sales", "turnover of purchases" and "importer" shall have the respective meanings assigned to them under the relevant earlier laws.

(2) A dealer to whom sub-s

S.4 Payment of Tax

Subject to the provisions of this Act and rules, there shall be paid by every dealer or, as the case may be, every person, who is liable to pay tax under this Act, the tax or taxes leviable in accordance with the provisions of this Act and rules.

S.5 [Substituted]

[5. Tax not leviable on certain goods.

Subject to the other provisions of this Act, and the conditions or exceptions, if any, set out against each of the goods specified in column (3) of the Schedule A, no tax shall be payable on the sales of any goods specified in column (2) of that Schedule.]

1. Substituted by the Maharashtra Value Added Tax (Levy And Amendment) Act, 2005 for the following :- "Subject to the other provisions of this Act, and the conditions or exceptions, if any, set out against each of the goods specified in column (3) of Schedule A, no tax shall be payable on the sales of any goods specified in column (2) of that schedule."

S.6 [Substituted]

2[6. Levy of sales tax on the goods specified in the Schedules.

There shall be levied a sales tax on the turnover of sales of goods specified in column (2) in Schedule B, C, D or, as the case may be, E, at the rates set out against each of them in column (3) of the respective Schedule.]

1. Inserted by the Maharashtra Value Added Tax (Levy, Amendment and Validation) Act, 2009 dated16.12.2009 w.e.f. 01.04.2005.

2. Substituted by the Maharashtra Value Added Tax (Levy And Amendment) Act, 2005 for the following :- "(1) There shall be levied a sales tax on the turnover of sales of goods specified in column (2) in the schedules B, C, D or, as the case may be, E at the rates set out against each of them in column (3) of the respective Schedule. 1 [(2) Notwithstanding anything contained in sub-section (1), there shall be levied a sales tax, in addition to the sales tax leviable under sub-section (1), on the sales of any motor spirits specified in

S.7 [Substituted]

1[7. Rate of tax on packing materials.

Where any goods are sold and such goods are packed in any material, the tax shall be leviable under section 6 on the sales of such packing material, whether such materials are separately charged for or not, at the same rate of tax, if any, at which tax is payable on the sales of the goods so packed.]

1. Substituted by the Maharashtra Value Added Tax (Levy And Amendment) Act, 2005 for the following :- "Where any goods are sold and such goods are packed in any material, the tax shall be leviable under section 6 on the sales of such packing material, whether such materials are separately charged for or not, at the same rate of tax, if any, at which tax is payable on the sales of the goods so packed."

S.8 Certain sales not liable to Tax

(1) Nothing in this Act or the rules or the notifications shall be deemed to impose or authorise the imposition of a tax or deduction of tax at source on any sale or purchase of any goods, where such sale or purchase takes place,-

• (a) (i) outside the State ; or
• (ii) in the course of the import of the goods into the territory of India, or the export of the goods out of such territory ; or
• (b) in the course of inter-State trade or commerce, and the provisions of this Act and the said rules and notifications shall be read and construed accordingly.

Explanation. -For the purpose of this section, whether a sale or purchase takes place- outside the State, or in the course of the import of the goods into the territory of India or export of the goods out of such territory, or in the course of inter-State trade or commerce, shall be determined in accordance with the principles specified in sections 3, 4 and 5 of the Central Sales Tax Act, 1956.

S.9 Exemptions

(1) The State Government may, from time to time, by notification in the Official Gazette,--

• (a) amend the Schedule by adding or modifying or deleting any entry therein and thereupon the Schedule shall stand amended accordingly for the purpose of levy of tax;
• (b) provide for reducing or enhancing the rates of tax or for specifying the rates of tax where NIL rates are specified, and thereupon the Schedule shall stand amended for the purposes of this Act:

1[***]

(2) The provisions contained in sub section (6) of section 83 regarding rules made by the State Government shall apply mutatis mutandis to any notification issued under sub-section (1) as they apply to the rules made by the State Government.

1. Omitted by the Maharashtra Value Added Tax (Amendment) Act, 2010 dated 18.02.010. Prior text was "Provided further that, no notification which provides for enhancement of rate of tax shall be issued after the expiry of the

S.10 Sales Tax Authorities and Tribunal

(1) For carrying out the purposes of this Act, the State Government shall appoint an officer to be called the Commissioner of Sales Tax.

(2) Likewise, the State Government may appoint such number of Additional Commissioners of Sales Tax, and such number of,-

• (a) Joint Commissioners,
• (b) Senior Deputy Commissioners,
• (c) Deputy Commissioners,
• (d) Assistant Commissioners,
• (e) Sales Tax Officers, and
• (f) other officers and persons, and give them such designations, as the Government deems necessary.

(3) The Commissioner shall have jurisdiction over the whole of the State (.). All other officers shall have jurisdiction over the whole of the State or over such local areas as the Commissioner may, by notification in the Official Gazette, specify.

(4) The Commissioner shall have and exercise all the powers and perform all the duties, conferred or imposed on the Commissioner by or under this Act, and the Ad

S.11 Tribunal

(1) There shall be a Tribunal to be called the Maharashtra Sales Tax Tribunal. The Tribunal shall consist of such number of members appointed by the State Government as the Government may, from time to time, consider necessary for the proper discharge of the functions conferred on the Tribunal by or under this Act.

(2) The State Government shall appoint one of the members of the Tribunal to be the President thereof on the basis of his seniority in the Judicial Service.

(3) The qualification and the terms of office of the members of the Tribunal shall be such as may be prescribed, and a member shall hold office for such period as may be prescribed or as the State Government may, by special order in his case, specify.

(4) Any vacancy of the member of the Tribunal shall be filled up by the State Government as soon as practicable.

(5) The functions of the Tribunal may, be discharged by any of the members sitting either singly, or in Benches of two or more me

S.12 Action against any authority for vexacious order or willful under Assessment etc.

(1) The Commissioner may.

• (i) on receipt of any complaint in the prescribed form from any dealer or person liable to pay tax under this Act or from any authority appointed under section 10, that any particular authority has made in the proceedings of such dealer or person a false or vexatious order or has taken any action under this Act vindictively or has vindictively not acted within a reasonable time upon any application provided for by or under this Act, or
• (ii) on receipt of a report from the Tribunal that, a particular authority has knowingly or willfully under-assessed any dealer or person or has passed a false or vexations order or has taken any action under this Act vindictively, or has vindictively not acted any reasonable time upon any application provided for, by or under this Act, or
• (iii) on his own motion, if he has reason to believe that any authority has passed such order or taken such action or has made such under-assessment, or has
  

S.13 Persons appointed under Section 10 to be public servant

The Commissioner and all officers and persons appointed under section 10 and all the members of the Tribunal shall be deemed to be public servants within the meaning of section 21 of the Indian Penal code.

S.14 Powers to Tribunal and Commissioner

(1) In discharging their functions by or under this Act, the Tribunal and the Commissioner shall have all the powers of a Civil Court for the purpose of,

• (a) proof of facts by affidavit;
• (b) summoning and enforcing the attendance of any person, and examining him on oath or affirmation;
• (c) compelling the production of documents; and
• (d) issuing commissions for the examination of witnesses.

(2) In the case of any affidavit to be made for the purposes of this Act, any officer appointed by the Tribunal or the Commissioner may administer the oath to the deponent.

(3) Without prejudice to the provisions of any other law for the time being in force, where a person, to whom a summons is issued by the Tribunal or the Commissioner either to attend to give evidence or produce books of accounts, registers or other documents at a certain place and time, intentionally omits to attend or produce the books of accounts, registers or docu

S.15 Indemnity

No suit, prosecution or other legal proceedings shall lie against any servant of the Government for anything which is in good faith done or intended to be done under this Act, the rules or notifications.

S.16 Registration

(1) No dealer shall, while being liable to pay tax under this Act, be engaged in the business as a dealer, unless he possesses a valid certificate of registration as provided by this Act:

Provided that, the provisions of this sub-section shall be deemed not to have been contravened, if the dealer having applied, within the prescribed time, for such registration as provided in this section, is engaged in such business:

Provided further that, if any dealer, holds the certificate of registration granted under the Bombay Sales Tax Act, 1959, (Bombay LI of 1959) which is effective or valid immediately before the appointed day, it shall not be necessary for him to apply for a fresh certificate under this section so long as the said certificate is not duly cancelled under this Act:

Provided also that, a dealer holding an effective certificate of registration or, as the case may be, a licence granted before the appointed day, under any laws other than the Bombay Sales

S.17 Certificate of Registration to continue in certain cases

(1)Every registered dealer who holds, on such date as the Commissioner may by notification in the Official Gazette specify, a certificate of registration, which is valid on the said date (hereinafter, in this section, referred to as the existing certificate of registration), shall obtain in lieu of the existing certificate of registration a fresh certificate of registration as provided in this section.

(2) Every dealer, who is required to obtain a fresh certificate under subsection (1), shall apply in such form, manner and time and to such authority as may be prescribed; and such application shall be accompanied by the existing certificate of registration together with all additional copies thereof, if any, issued to him.

(3) On receipt of such application, the prescribed authority shall, subject to rules, issue a fresh certificate of registration, in the prescribed form to the applicant; and thereupon the fresh certificate of registration, so issued, shall, for all t

S.18 Information to furnish regarding changes in business etc.

Any registered dealer liable to pay tax under this Act, who,-

• (a) transfers by way of sale or otherwise disposes of his business or any part thereof, or effects or knows of any other change in the ownership of the business or
• (b) discontinues his business, or changes the place thereof, or opens a new place of business, or
• (c) changes the name of his business, or
• (d) enters into a partnership in regard to his business, or
• (e) applies for or has an application made against him for insolvency or liquidation,
• (f) being a company, is involved in merger, de-merger or amalgamation of companies,

shall, within the prescribed time, inform the prescribed authority accordingly.

(2) Where any dealer liable to pay tax under this Act,

• (a) dies, his executor, administrator or other legal representative or,
• (b) where he is a firm, a Hindu Undivided Family or an association of persons and there is a
  

S.19 Persons to be declared as Manager and Permanant account number

(1) Every dealer, who is liable to pay tax, and who is a Hindu Undivided Family, or an association of persons, club or society or firm or company, or who is engaged in business as the guardian or trustee or otherwise on behalf of another person shall, within the period prescribed send to the authority prescribed, a declaration in the manner prescribed stating the name of the person or persons who shall be deemed to be the manager or managers of such dealers business for the purposes of this Act. Such declaration shall be furnished at the time of registration whenever applicable and may be revised in the prescribed manner, from time to time.

(2) Every dealer liable to pay tax under this Act who is liable to obtain a permanent account number under the Income Tax Act, 1961, shall communicate to the Commissioner, in the prescribed time and manner, the said number 1[***].

1. Deleted vide chapter V of the Maharashtra Tax Laws (Levy, Amendment and Validation)

S.20 [Substituted]

15[20. Returns and self-assessment.

(1) (a) Every registered dealer shall file correct, complete and self-consistent return in such form, by such date, for such period and to such authority as may be prescribed. Different types of returns may be prescribed for different classes of dealers.

(b) The Commissioner may examine the return to ascertain whether it is complete and self-consistent. If the return is not complete or self-consistent, the Commissioner may serve on the dealer, within four months of date of filing of the return, a defect notice in the prescribed form. The said registered dealer shall correct the defects and submit to the prescribed authority a fresh complete and self-consistent return, within one month of the service of the defect notice:

Provided that, the registered dealer who fails to submit a complete or self-consistent fresh return within the said period of one month shall be deemed not to have submitted the return within the p

S.21 Assessment

2[***]

1. Substituted by the Maharashtra Tax Laws (Levy, Amendment and Validation) Act, 2006 for the following words "four years."

2. Omitted by the Maharashtra Value Added Tax (Amendment and Validation) Act, 2011 vide Notification No dated 03.04.2011 w.e.f. 10.03.2011 for the following : - "(1) Where a return is filed by the prescribed date by a registered dealer no notice calling the dealer for assessment in respect of the period covered by the return shall be served on the dealer after two years from the end of the year containing the period to which the return relates. (2) Where a registered dealer has not filed a return in respect of any period by the prescribed date, no notice calling the dealer for assessment in respect of the said period shall be served on the dealer after three years from the end of the year containing the said period : (3) Notwithstanding anything contained in sub-section (1) or (2) , a notice for assessment in respec

S.22 Business Audit

(1) With a view to promoting compliance with the provisions of this Act, the Commissioner may arrange for audit of the business of any registered dealer. For the purpose of this section, the selection of dealers for audit shall be made from amongst the dealers,-

• (a) who have not filed returns by the prescribed dates; or
• (b) who have claimed refund of tax; or
• (c) where the Commissioner is not, prima-facie, satisfied with the correctness of any return filed by a dealer or is not satisfied with any claim made, deduction claimed or turnover disclosed in any return filed by the dealer; or
• (d) who are selected by the Commissioner on the basis of the application of any criteria or on a random selection basis; or
• (e) where the Commissioner has reason to believe that detailed scrutiny of the case is necessary.

(2)...........

2[***]

(4) ...........

(5) (a) During the course of the audit, the office

S.23 Assessment

(1) Where a registered dealer fails to file a return in respect of any period by the prescribed date, the Commissioner may assess the dealer in respect of the said period to the best of his judgment without serving a notice for assessment and without affording an opportunity of being heard:

Provided that, if after the assessment order is passed, the dealer submits the return for the period to which the said order relates then, the order passed as aforesaid shall stand cancelled and after such cancellation, the dealer may be assessed in respect of the same period under other provisions of this section:]

Provided further that, such cancellation shall be without prejudice to any interest or penalty that may be levied in respect of the said period:

Provided also that, no order under this sub-section shall be passed after three years from the end of the year containing the said period.]

(2) Where the return in respect of any period is filed by a registered de

S.24 Rectification

(1) The Commissioner may, at any time within two years from the end of a financial year in which any order passed by him has been served, on his own motion, rectify any mistake apparent on the record, and shall within the said period or thereafter rectify any such mistake which has been brought to his notice within the said period, by any person affected by such order:

Provided that, no such rectification shall be made if it has the effect of enhancing the tax or reducing the amount of a refund or interest payable on refund, unless the Commissioner has given notice in writing in the prescribed form to such person of his intention to do so and has allowed such person a reasonable opportunity of being heard. An application for rectification shall not be rejected on the ground that there is no mistake apparent on record unless the person concerned has been given a reasonable opportunity of being heard:

Provided further that, where a dealer has applied in the prescribed f

S.25 Review

(1) After any order including an order under this section or any order in appeal, is passed under this Act, rules or notifications, by any officer or person sub-ordinate to him, the Commissioner may, of his own motion, or upon information received by him, call for the record of such order and examine whether,--

• (a) any turnover of sales or purchases has not been brought to tax or has been brought to tax at lower rate, or has been incorrectly classified, any claim is incorrectly granted or that the liability to tax is understated, or
• (b) in any case, the order is erroneous, in so far as it is prejudicial to the interests of revenue, and after examination may by serving on the dealer a notice in the prescribed form , pass an order to the best of his judgment, where necessary,

(2) (a) For the purpose of the examination and passing of the order, the Commissioner may require by service of notice in the prescribed form, the dealer to produce or cause t

S.26 Appeals

(1) 1[An appeal from every order, not being an order mentioned in sub-section (2) of this section and sub-section (2) of section 85] passed under this Act or rules or notifications, shall lie if the order is made,

• (a) by a Sales Tax Officer or an Assistant Commissioner, or any other officer sub-ordinate thereto, to the Deputy Commissioner;
• (b) by a Deputy Commissioner or Senior Deputy Commissioner, to the Joint Commissioner; -
• (c) by a Joint Commissioner, Additional Commissioner or the Commissioner, to the Tribunal.

(2) In the case of an order passed in appeal by a Deputy Commissioner or a Joint Commissioner, a second appeal shall lie to the Tribunal.

(3) Every order passed in appeal by the Tribunal under this section. shall, subject to the provisions of sections 24 and 27, be final and every order passed in appeal by any other appellate authority, shall, subject to the provisions of sections 24, 25 and 27 be final.