United Spirits Ltd. Vs Additional Commissioner of State Tax-II And Appellate Auth. (Bombay High Court)
Bombay High Court granted interim relief to United Spirits Ltd. by staying the recovery of interest under the Goa Value Added Tax Act, 2005, pending further consideration of the matter. The company challenged the order dated 29 January 2025 issued by the Additional Commissioner of State Tax and upheld by the Appellate Authority, which levied interest of ₹53,58,986 under Section 25(4) of the Act for delayed tax payment.
United Spirits contended that until November 2024, there was no clarity on whether Extra Neutral Alcohol (ENA) was taxable under the VAT regime or the new tax framework. The company submitted that it had deposited the VAT amount on 30 September 2021, and since the taxability issue remained unsettled for years, the imposition of interest was unjustified.
The Court took note of a communication dated 10 June 2025, directing the petitioner to pay the interest or face recovery proceedings. Observing that the issue required deeper examination, the Court ordered that no coercive steps, including recovery of the interest amount, be taken against the petitioner until the matter is heard and pleadings are complete.
The Court also directed the respondents to file their replies by 10 July 2025, with liberty to the petitioner to file a rejoinder within one week thereafter. The matter was listed for further hearing on 21 July 2025.
