President Trade And Exim Corporation Vs State of Maharashtra (Bombay High Court)
Bombay HC sets aside Settlement Order issued post- refund adjustment under MVAT Amnesty Scheme
The Bombay High Court in “President Trade and Exim Corporation Versus The State of Maharashtra, Writ Petition No. 5048 of 2025 dated 12th March 2026” held that the Settlement Order for Tax Period: 2008-09 which was issued post adjustment of refund of previous year was illegal since the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fees Act 2023 (MVAT Amnesty Scheme) is a complete code in itself and no refund adjustment could be undertaken u/s 50 of the MVAT Act 2002 once the ‘requisite amount’ is already paid. Accordingly, Settlement Order passed post refund adjustment was treated contrary to the legislative intent of the MVAT Amnesty Scheme and directions were given to the Respondent Officer to accept the Amnesty settlement based on the Petitioner’s payment of requisite amount without refund adjustment.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
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 18thApril 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.
