Bombay High Court
THE COMMISSIONER OF SALES TAX, MAHARASHTRA STATE, MUMBAIversusM/S HINDUSTAN SPINNING AND WEAVING MILLS LTD.
- Decided
- Disposal
- DISPOSED OFF
Holding
The Court did not decide the question of law and left it open to be determined in a future appropriate reference.
Summary
The Commissioner of Sales Tax, Maharashtra (Applicant) sought clarification on Section 7(1) of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023, which provides that arrears of Rs.2 lakhs or less per financial year may be written off. The amount in dispute was less than Rs.2 lakhs, prompting the Applicant to request that the reference be disposed of while keeping the legal question open for future proceedings where arrears exceed the threshold. The Court agreed with the Applicant’s submission, noting that the question of law had not been fully addressed and should be decided in an appropriate proceeding. Consequently, the reference was returned unanswered, leaving the legal issue unresolved for the time being. The decision essentially postpones any definitive interpretation of the write‑off provision until a case involving larger arrears arises.
Issues considered
- Whether Section 7(1) of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023 mandates that arrears of Rs.2 lakhs or less per financial year must be written off.
- Whether the Court should decide the above question of law in the present reference where the arrears are below Rs.2 lakhs.
Legislation cited
Subjects
- sales tax
- arrears
- write‑off threshold
- reference
- law question
- Maharashtra tax law
- Section 7(1)
- tax settlement act
Judgment
902 STR 39-17-OS.DOC
Priya Soparkar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
SALES TAX REFERENCE NO. 39 OF 2017
The Commissioner of Sales Tax, Maharashtra …Applicant
State, Mumbai.
Versus
Hindustan Spinning and Weaving Mills Limited …Respondent
Ms. Jyoti Chavan, Addl. GP with Mr. Himanshu Takke, AGP, for the
Applicant-State.
Ms. Nikita Badheka with Mr. Parth Badheka, for the Respondent.
CORAM: SUMAN SHYAM &
GAUTAM A. ANKHAD, JJ.
DATED: 8th OCTOBER, 2026.
PC:-
1. Ms. Jyoti Chavan, learned Addl. GP appearing for the
Applicant-State submits that Section 7 of the Maharashtra
Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023
(the said Act), under Sub-Section (1) provides that
notwithstanding anything contained in the relevant Act or under
Digitally
signed by
the said Act any arrears determined as per any statutory order for
PRIYA
PRIYA RAJESH
RAJESH SOPARKAR
SOPARKAR Date:
2026.10.08
17:31:37
the specified period, as on 30th April 2023, which are Rs.2 lakhs or
+0530
less per financial year under the relevant year shall be written off.
In this reference, the amount in arrears is less than Rs.2 lakhs.
Page 1 of 2
902 STR 39-17-OS.DOC
Therefore, Ms. Jyoti Chavan, learned Addl. GP states that the
reference be disposed of by keeping open the question of law to be
decided in an appropriate proceeding. We agree with the
submission of Ms. Jyoti Chavan. There could be some proceedings,
where the same questions of law may be involved where the
arrears would be in excess of Rs.2 lakhs.
2. Therefore, we dispose of the reference by clarifying that the
question(s) of law has/have not been gone into and the same
is/are left open to be decided in any other appropriate reference.
3. Therefore, this reference is returned unanswered.
(GAUTAM A. ANKHAD, J.) (SUMAN SHYAM, J.)
{
Page 2 of 2
Checking your session…
Lawyer court records for this case
Associated through the court’s case reference.