Office of the Commissioner of Sales Tax, Vikrikar Bhavan, 8th floor, Room No.831, Mazgaon, MUMBAI-400010 .


No. Build-Devep/ADM Relief 06-10/ADM-8 Mhunbal, Dated – 25.09.2012

Trade Cir. No. 17T of 2012

Sub : Extension of dates for Grant of Registration, ADM relief and payment of taxes etc.

Ref. : Trade Circular bearing No. 14T 2012 dated 6th August 2012.

You are well aware that Hon’ble Bombay High Court in case Maharashtra Chamber of Housing Industry (“MCHI“) has delivered a judgment and confirmed the levy of the tax in respect of sale of under construction flats etc. Thereafter, this office issued a Trade Circular cited at Ref. above and issued instructions with regards to registration, administrative relief and payment of tax by Builders and Developers.

2. The Promoters and Builders Association as well as MCHI have filed the Special Leave Petitions before Honble Supreme Court of India. The matter came for hearing before the Hon’ble Apex court on 28th August 2012. The apex court passed an interim order on 28/08/2012.

3. To give effect to the interim order passed by Hon’ble Apex Court, the instructions contained in clause (1) and (m) of the Trade Circular 14T of 2012 dated 6th August 2012 stands modified as under:-

(a) The developers who have not obtained the registration under MVAT Act, 2002 shall obtain the same on or before 15th October 2012.

(b) The time for filing of return and payment of tax stands extended up to 31st October 2012.

As per the directions of Hon’ble Supreme Court of India, “In case the concerned developers pay tax under the Maharashtra Value Added Tax Act, 2002 (for short “2002 Act”) as amended vide Section 2(24) w.e.f. June20, 2006 on or before October 31, 2012, the coercive process for recovery of tax, interest or penalty shall remain stayed. This shall however not preclude the assessing officer to complete the assessment.

The above payment of tax by the concerned developers shall be subject to the final decision in the matter before this court.”

(c) The payment of the tax as aforesaid shall be subject to the final outcome of the aforesaid petition.

(d) The developers fulfilling above two conditions will become eligible for grant of administrative relief provided the application is made on or before 31st October 2012.

4. If any member of the trade has any doubt, he may refer the matter to this office for further clarification or may contact to the Help Desk officers mentioned in Trade Circular No. 14T of 2012.

5. You are requested to bring contents of this circular to the notice of the members of your association.

Yours faithfully,

Commissioner of Sales Tax,

Maharashtra State, Mumbai.


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