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2019 (8) TMI 375 - HC - VAT and Sales TaxScope of undisputed tax and disputed tax - Circular No.40T of 2019 dated 20 July 2019 - Section 19(1) of Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019 - HELD THAT - In view of the statement made on behalf of the Respondent by Mr.Sonpal that the Trade Circular would be considered by Respondent No.2 Commissioner of Sales Tax, the challenge to the Trade Circular for the present does not survive. However, all contentions are kept open. Needless to add, that as the application is made by the Petitioner under the Amnesty Scheme before 31 July 2019, it would be payment made under the Phase-I of the scheme. In the present facts, the Petitioner's application would be considered as an application under the first phase as provided under Section 4 of the Act, even if further differential payment is made consequent to the order on representation by Respondent No.2 Commissioner. However, the further payment, if any, required to be made by the order on representation would be done within one week of receipt of the above order. Petition disposed off.
Issues:
Challenge to a circular issued under Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019 - Clarification on "undisputed tax" and "disputed tax" - Petitioner's benefit under the Act - Representation to the Commissioner - Consideration of Trade Circular - Amnesty Scheme application - Payment under Phase-I of the scheme. Analysis: The petition challenges Circular No.40T of 2019 issued by the Commissioner of Sales Tax under the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2019. The Petitioner argues that the circular's clarification on "undisputed tax" and "disputed tax" goes beyond the Act, rendering it ultra vires and potentially depriving the Petitioner of benefits under the Act. Specifically, the circular addresses the collection of MVAT credit for Central Sales Tax liability, deeming it as undisputed tax under the Act. The Petitioner seeks to benefit from the amnesty scheme available under the Act but faces a potential bar on refunds if payments are made as per the circular. The Revenue's Counsel responds by stating that the Commissioner will consider any representations made by the Petitioner regarding the circular's compliance with the Act. The Commissioner commits to deciding on the representation within 10 days of filing, allowing the Petitioner to continue with payments under the Amnesty Scheme until a decision is reached. Additionally, the Respondents are permitted to review the Petitioner's amnesty application under Section 11 of the Act during this period. The Court notes the Revenue's assurance that the Trade Circular will be reviewed by the Commissioner, which addresses the challenge to the Trade Circular for the time being. The Petitioner's application under the Amnesty Scheme, submitted before a specified date, is considered under Phase-I of the scheme. Any subsequent payments required post the Commissioner's decision must be made within a week of receiving the order. The petition is disposed of based on the above terms, keeping all contentions open for future consideration.
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