2018 (4) TMI 1487 - HC - VAT and Sales Tax

Whether the amendment carried out in Section 2(24) Explanation (b) of the Act by the Maharashtra Act No. XIV of 2005 resulted in deletion of the words shall be deemed to be a sale , being part of paragraph No.(vii) of the said Explanation to the Clause 24 of Section 2 of the Act? Held that - it is an agreed position between the parties that the question raised herein be restored to the Tribunal for fresh consideration after taking into account the Gazette published in Marathi and English of Act IX of 2005 to determine whether or not there is any conflict between the English and Marathi Gazette publication - In case, it is found to be so, then decide on the correct interpretation after deciding which of the two translation s correctly represent the will of the Legislature. The issue is restored to the Tribunal for fresh disposal.

Summary

Issues:
1. Interpretation of the amendment made to Section 2(24) of the Maharashtra Value Added Tax Act, 2002.
2. Conflict between English and Marathi versions of the Gazette publication of the amending Act.
3. Correct interpretation of the legislative will based on the Gazette publications.

Analysis:
1. The High Court of Bombay heard an appeal challenging the order of the Maharashtra Sales Tax Tribunal which dismissed the appellant's appeal regarding the deletion of certain words in the Maharashtra Value Added Tax Act, 2002. The appellant questioned whether the amendment to Section 2(24) Explanation (b) of the Act by Maharashtra Act No. XIV of 2005 resulted in the deletion of specific words. The Tribunal based its decision on the English Gazette copy of the amending Act, while the appellant relied on the Marathi Gazette copy. The appellant argued that the words "shall be deemed to be a sale" were also deleted along with other provisions. The Court noted the discrepancy between the English and Marathi versions of the Gazette publication.

2. The respondent, represented by the Learned AGP, contended that the words "shall be deemed to be a sale" should apply to the entire Explanation (b) of Section 24 of the Act based on the Marathi Gazette publication. The Revenue supported the Tribunal's decision, citing the Marathi publication which was not presented before the Tribunal during the initial proceedings. The Court acknowledged the need to resolve the conflict between the English and Marathi translations of the Gazette publication to ascertain the correct interpretation of the legislative intent behind the amendment.

3. Consequently, the Court agreed with both parties to remand the matter back to the Tribunal for fresh consideration. The Tribunal was directed to examine both the English and Marathi Gazette publications of Act No. IX of 2005 to determine any disparities and decide on the accurate interpretation that aligns with the Legislature's intent. The High Court set aside the Tribunal's order and instructed a reevaluation of the issue based on the directions provided. The appeal was disposed of without any order as to costs, emphasizing the importance of resolving the discrepancy in the Gazette publications for a conclusive interpretation of the legislative amendment.