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TMI Blog2025 (2) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... in the argument canvassed on behalf of the State. If the State contends that surcharge is different from tax, then, the statutory bar as referred to in Section 21 (7) cannot apply because the Section clearly stipulates that what should not be stayed is only the recovery of tax. On the other hand, if one were to treat surcharge as tax, then, at least prima facie, the Petitioner would be entitled to the benefits set out in Rule 15 (2) (b) and would make the recovery itself vulnerable to challenge. The Petitioner has certainly made out a case to have the recovery proceedings stayed pending the disposal of the Reference Applications filed by it before the MSTT. This is said because the Petitioner-HPCL is a Public Sector Undertaking and it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... airly stated to the Court that the only relief he presses in the above Writ Petition is to direct the Maharashtra Sales Tax Tribunal ("MSTT") to decide Reference Application Nos. 3 of 2024, 4 of 2024 and 5 of 2024 filed by the Petitioner [for three different Assessment Years] as expeditiously as possible and in a time-bound manner. Mr. Dada also submitted that until Reference Application Nos.3 of 2024, 4 of 2024 and 5 of 2024 are decided, the Recovery Notice dated 21st January 2025 issued by the Sales Tax Authorities be stayed. 3. Mr. Dada submitted that in the facts of the present case, the levy of surcharge was brought on the Statute Book of the Bombay Sales of Motor Spirit Taxation Act, 1958 ("the said Act") by an amendment of 2002. Mr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding to the Petitioner, surcharge would be included in the word "tax" and that is the only way the Act would become workable, especially with reference to assessment and recovery of surcharge. If that be the case, then, necessarily the word "tax" appearing in Rule 15 (2) (b) would also have to necessarily include "surcharge", thereby entitling the Petitioner to not having to pay any surcharge under the said Rule. He, therefore, submitted that this being an important question of law and which is also pending in this Court in STR No. 1 of 2025 & other connected matters, the State ought to be directed not to proceed with recovery and stay its hands from taking any coercive action. 5. On the other hand, Mr. Sonpal, the learned Senior Counsel a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from tax, then, the statutory bar as referred to in Section 21 (7) cannot apply because the Section clearly stipulates that what should not be stayed is only the recovery of tax. On the other hand, if one were to treat surcharge as tax, then, at least prima facie, the Petitioner would be entitled to the benefits set out in Rule 15 (2) (b) and would make the recovery itself vulnerable to challenge. 7. When one looks at these facts, we are of the view that the Petitioner has certainly made out a case to have the recovery proceedings stayed pending the disposal of the Reference Applications filed by it before the MSTT. We also say this because the Petitioner-HPCL is a Public Sector Undertaking and it is not as if the Petitioner would be unabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... until the above Reference Applications are decided, the operation, implementation and execution of the Recovery Notice dated 21st January 2025 shall remain stayed. 10. We may hasten to clarify that we have not opined on the merits of the matter and any observations made by us herein are only prima facie and the above Reference Applications shall be decided by the MSTT on its own merits uninfluenced by anything said by us in the present order. 11. The Writ Petition is disposed of in the aforesaid terms. However, there shall be no order as to costs. 12. This order will be digitally signed by the Private Secretary/ Personal Assistant of this Court. All concerned will act on production by fax or email of a digitally signed copy of this orde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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