Priyanka Communications India Pvt. Ltd. Vs State of Maharashtra & Ors. (Bombay High Court)
Bombay HC: MVAT refund cannot be adjusted against subsequent-year tax liability without notice or consent
Summary: The Petitioner, Priyanka Communications India Pvt. Ltd., challenged the order dated 27 June 2024 passed by the First Appellate Authority, Joint Commissioner of Sales Tax, Mumbai, City Division, Mumbai. The Petitioner contended that although it was entitled to refund for the assessment year 2014-2015, the refund had been declined on the ground that the amount was liable to be adjusted against a claim that might arise against it during financial years 2016-2017 and 2017-2018.
Relying upon the decision of the Bombay High Court in TML Business Services Ltd. vs. Deputy Commissioner of State Tax, Pune & Ors., reported at 2023 SCC Online Bom 2852, the Petitioner submitted that such recourse was impermissible. It was also contended that the impugned order had been passed without serving any prior notice upon the Petitioner or obtaining its consent, causing prejudice to its interests.
The Bombay High Court noted that, pursuant to the Court’s direction, the learned AGP obtained instructions from the Respondent-State. The State submitted that if the matter were remanded, a fresh decision would be taken after considering the Petitioner’s contentions and the applicable decisions of the Court.
