United Spirits Ltd Vs Additional Commissioner of State Tax-II (Bombay High Court)
Bombay High Court held that interest under section 25(4) of the GVAT on delayed payment of VAT on sales of High Bouquet Spirit (HBS)/Rectified Spirit (RS)/Extra Neutral Alcohol (ENA) justifiable in spite of uncertainty with regard to levy to be imposed on the same.
Facts- The Petitioner is engaged in the manufacture, import and export of alcoholic liquors including alcoholic beverages and High Bouquet Spirit (HBS)/Rectified Spirit (RS)/Extra Neutral Alcohol (ENA). HBS/RS/ENA are high concentration alcoholic spirits (9496%), which are used in manufacture of ‘alcoholic liquors for human consumption’.
The Petition is filed in the context of taxability of the above goods viz. ENA/HBS/RS during Financial Year 2019-20 and according to the Petitioner, it filed the Return for the year 2019-20, with the period of assessment from 01/04/2019 to 31/03/2020. However, the order of assessment passed u/s. 29 of the Goa Value Added Tax Act, 2005 by the Assessing Authority, Ponda Ward dated 15/03/2023, imposed interest for late payment of the tax. The Appeal preferred by the Petitioner (appellant) under Section 35 of the GVAT Act, however, was dismissed by upholding the VAT Assessment Order of the Commercial Tax Officer, Ponda.
