Bombay High Court
THE COMMISSIONER OF SALES TAX MAHARASHTRA STATE, MUMBAIversusM/S RUBY CAST
- Decided
- Disposal
- DISPOSED OFF
Holding
The Court did not decide the question of law and returned the reference unanswered, leaving the issue open for future determination.
Summary
The Commissioner of Sales Tax, Maharashtra (State) sought clarification on the operation of Section 7(1) of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023, which provides that arrears of up to Rs.2 lakh as of 30 April 2023 shall be written off. The reference involved a specific case where the arrears were less than Rs.2 lakh. The State, through Addl. GP Ms. Jyoti Chavan, argued that the question of law should be decided in this reference. The Court observed that similar references may arise where arrears exceed Rs.2 lakh, but in the present case the legal question was not finally decided. Consequently, the Court disposed of the reference by leaving the legal issue open for determination in a future reference and returned the reference unanswered.
Issues considered
- What is the effect of Section 7(1) of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023 on arrears of less than Rs.2 lakh as of 30 April 2023?
Legislation cited
Subjects
- sales tax
- arrears
- write‑off
- statutory interpretation
- reference
Judgment
904 STR 42-17-OS.DOC
Priya Soparkar
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
SALES TAX REFERENCE NO. 42 OF 2017
The Commissioner of Sales Tax, Maharashtra …Applicant
State, Mumbai.
Versus
Ruby Cast …Respondent
Ms. Jyoti Chavan, Addl. GP with Mr. Himanshu Takke, AGP, for the
Applicant-State.
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
the said Act any arrears determined as per any statutory order for
Digitally
signed by
the specified period, as on 30th April 2023, which are Rs.2 lakhs or
PRIYA
PRIYA RAJESH
RAJESH SOPARKAR
SOPARKAR Date:
2026.10.08
14:45:43
+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.
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904 STR 42-17-OS.DOC
Therefore, Ms. Jyoti Chavan, learned Addl. GP states that the
reference be disposed keeping open the issue of law to be decided.
We agree with the submission of Ms. Jyoti Chavan. There could be
some references, 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.)
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