Joint Commissioner of Sales Tax Legal M S Mumbai Vs M S L G Polymers India Pvt Ltd (Bombay High Court)
Summary: The Bombay High Court admitted two Maharashtra Value Added Tax appeals filed by the Joint Commissioner of Sales Tax against M S L G Polymers India Pvt Ltd on three substantial questions of law. The Revenue submitted that a connected appeal, Maharashtra Value Added Tax Appeal No. 58 of 2006, involving the same questions had already been admitted by an order dated 14 October 2026, and requested admission and tagging of these appeals with that matter. After hearing the Revenue, the Court admitted the appeals to examine whether a transaction can qualify as a sale in the course of import under Section 5(2) of the Central Sales Tax Act, 1956, read with Section 18 of the Sale of Goods Act, 1930, where the goods remain unascertained until after crossing India’s customs frontiers; whether endorsement of a bill of lading alone can legally transfer property in unascertained goods without ascertainment and appropriation of specific goods to the contract; and whether statutory review jurisdiction under Section 9 of the CST Act, read with Section 25 of the Maharashtra Value Added Tax Act, 2002, is governed by the statutory conditions prescribed under those provisions. The Court issued notice to the respondent, returnable on 9 December 2026. As nobody appeared for the respondent, it directed issuance of Court notice and required the appellant to furnish a copy in the Registry. The order admits the appeals for consideration and does not determine any of the three questions on merits.
Cases Discussed
- Connected appeal, party names not stated — Maharashtra Value Added Tax Appeal No. 58 of 2006; order dated 14/10/2026 (Bombay High Court). The Revenue referred to its earlier admission on the same substantial questions of law as the basis for seeking admission and tagging of the present appeals.
FULL TEXT OF THE ORDER OF BOMBAY HIGH COURT
1. Ms. Rita Joshi, learned AGP appearing for the Appellant, submits that the connected Appeal involving the same substantial questions of law, i.e., Maharashtra Value Added Tax Appeal No. 58 of 2006 has already been admitted by this Court by order dated 14th October, 2026. Therefore, these Appeals be also admitted and tagged along with the other matter.
2. Having heard the learned Counsel for the Appellant, we are inclined to admit the Appeals to be heard on the following substantial questions of law.
“1. Whether, on a true and correct interpretation of Section 5(2) of the Central Sales Tax Act, 1956, read with Section 18 of the Sale of Goods Act, 1930, a sale can qualify as a sale in the course of import where the goods remain unascertained until after crossing the customs frontiers of India?
2. Whether the transfer of property in unascertained goods can be recognised in law merely on the endorsement of a bill of lading, without ascertainment and appropriation of the specific goods to the contract, in accordance with Section 18 of the Sale of Goods Act, 1930?
3. Whether the scope and exercise of statutory review jurisdiction under Section 9 of the Central Sales Tax Act, 1956, read with Section 25 of the Maharashtra Value Added Tax Act, 2002, are governed by the statutory conditions prescribed thereunder?”
3. Admit the Appeals.
4. Issue notice to the Respondent, returnable on 9th December, 2026.
5. Since none has appeared for the Respondent, Court notice be issued to the Respondent. Appellant to furnish copy in the Registry.
