2012 (9) TMI 105 - SC - VAT and Sales Tax

Registration of Developers - Held that - The time for registration by the developers as per clause (1) of the Trade Circular dated August 6, 2012 shall stand extended up to October 15, 2012 and the time for filing returns by the developers as per clause (m) of the said circular shall stand extended up to October 31, 2012. As per amendment in section 2(24) of Maharashtra Value Added Tax Act, 2002 w.e.f. June 20, 2006 on or before October 31, 2012, the coercive process for recovery of tax, interest or penalty shall remain stayed in case the concerned developers and in case the amendment is held to be unconstitutional and the tax so deposited is ordered to be returned by the State Government the same shall be returned along with interest at such rate that may be ordered by the court finally at the time of disposal of the matter.

Summary

Issues: Extension of time for registration and filing returns under Trade Circular dated August 6, 2012; Stay on coercive recovery process for tax, interest, or penalty; Payment of tax by developers under Maharashtra Value Added Tax Act, 2002; Constitutionality of amendment in section 2(24) of the 2002 Act.

In the judgment by the Supreme Court, the issue at hand involved the extension of time for registration and filing returns under a Trade Circular dated August 6, 2012. The Advocate General for the State of Maharashtra proposed an extension of the deadlines, which the Court found satisfactory for the ends of justice. The Court ordered that the time for registration by developers be extended until October 15, 2012, and the time for filing returns be extended until October 31, 2012. Additionally, the Court stated that if developers pay tax under the Maharashtra Value Added Tax Act, 2002 by October 31, 2012, the coercive process for recovery of tax, interest, or penalty would be stayed, while allowing the Assessing Officer to complete the assessment.

Furthermore, the Court emphasized that the payment of tax by developers would be subject to the final decision of the Court in the matter. In case the amendment in section 2(24) of the 2002 Act was deemed unconstitutional and the tax paid by developers needed to be returned by the State Government, the Court directed that the amount should be refunded along with interest at a rate determined by the Court at the time of final disposal of the case. Ultimately, the Court disposed of the application accordingly, providing clarity on the extension of deadlines, the stay on recovery processes, and the implications of the tax payments in light of the constitutional validity of the relevant amendment in the Act.