Stressed Assets Stabilization Fund Vs State of Maharashtra (Bombay High Court)
Bombay High Court held that Stressed Assets Stabilization Fund is a deemed dealer as per Explanation to section 2(8) of the Maharashtra Value Added Tax, 2002 [MVAT Act] and hence liable for payment of tax.
Facts- The Appellant, namely M/s. Stressed Assists Stabilization Fund (SASF), is a trust set up by the Central Government. The purpose of setting up the aforesaid Trust was basically to acquire, by transfer, the stressed assets of the Industrial Development Bank of India (IDBI) who had accumulated non-performing assets to the tune of approximately Rs.9,000/- Crores as on 31st March 2004. Pursuant to the aforesaid Trust Deed and to take its object forward, a Transfer Deed dated 30th September 2004 was executed between IDBI and the Appellant Trust (SASF) whereby the stressed assets of IDBI were transferred to the Appellant.
Commissioner came to the conclusion that the Appellant is a “deemed dealer” as per the Explanation to Section 2(8) of the MVAT Act. The Commissioner also held that the definition of “business” would not apply to the Appellant and the only aspect to be considered is whether the Appellant is selling any goods (movable property) by auction. He held that the sale of movable property by the Appellant through the auction process amounted to a sale of movable property and therefore exigible to Sales Tax.
