TML Business Services Ltd Vs Deputy Commissioner of Salex Tax (Bombay High Court)
Bombay High Court held that liability for year 2010-2011 duly discharged by the petitioner. Hence, adjustment of refund for year 2011-2012 against liability for 2010-2011 unjustified. State authorities cannot retain the excess amount which is not in accordance with law
Facts- Petitioner is engaged in trading of vehicles and is registered with the Respondent-Tax Authority.
For the year 2010-2011, an assessment order was passed demanding a sum of Rs.17,76,93,422/-. The said order was challenged in appeal and the Appellate Authority passed an order in appeal by which the demand was reduced to Rs.14,00,74,890/-.
For the year 2011-2012, an assessment order was passed demanding a sum of Rs.9,67,02,366/-. The said order was subject matter of appeal and the appeal for the year 2011-2012 was allowed resulting in refund of Rs.10,69,89,606/-.
On 6th March 2019, Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019 was introduced and petitioner availing benefit under the scheme paid Rs.8,46,84,821/- as against the original outstanding dues of Rs.14,00,74,790/-.
However, on 23rd May 2019, respondents issued a refund adjustment order under Rule 55 of the Maharashtra Value Added Tax Rules, 2005 informing Petitioner that refund of Rs.10,69,89,606/- for the year 2011-2012 will be adjusted towards the amount of tax due for the year 2010-2011. It is on this backdrop that the present petition is filed praying for refund for the year 2011-2012 of Rs.10,69,89,606/-.
