MVAT- ITC – No set off if tax not received into Government Treasury

Mahalaxmi Cotton Ginning Pressing and Oil Industries Vs State of Maharashtra & Ors. (Bombay High Court) The petitioner, a partnership firm engaged in the business of reselling cotton bales and registered under the Maharashtra Value Added Tax Act, 2002 (MVAT Act), challenged the constitutional validity of Section 48(5) of the Act. Alternatively, it sought a reading down of the expression “actually paid” to mean “ought to have been paid.” The petitioner also challenged an assessment order that reduced its input tax credit (ITC) claim and refund on the ground that certain suppliers ha...