Indian Oil Corporation Ltd vs State Of Maharashtra
2023 Latest Caselaw 13183 Bom

Bombay High Court

Indian Oil Corporation Ltd vs State Of Maharashtra on 20 December, 2023

Author: Neela Gokhale

Bench: K. R. Shriram, Neela Gokhale

2023:BHC-OS:15260-DB
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                              IN THE HIGH COURT OF JUDICATURE AT BOMBAY
                                  ORDINARY ORIGINAL CIVIL JURISDICTION
                                      SALES TAX APPLICATION NO. 1 OF 2023

            Indian Oil Corporation Ltd.                           ...Applicant
                  Versus
            The State of Maharashtra & Ors                        ...Respondents
                                                ----
            Mr. Sriram Sridharan a/w Mr. Shanmuga Dev for Applicant.
            Dr. Birendra Saraf, Ld. Advocate General a/w Mr. Vinay Sonpal, Special
            Counsel, Ms. Jyoti Chavan, Addl. GP and Mr. Himnashu Takke, AGP for
            Respondents State.
                                                ----
                                           CORAM : K. R. SHRIRAM &
                                                      Dr. NEELA GOKHALE, JJ.

DATED : 20th DECEMBER 2023

P.C. :

1 The following questions of law are proposed:

"(i) Whether, under the facts and circumstances, the Tribunal erred in confirming the levy of surcharge under sub-section (3) of Section 5 of MST Act on sale of Motor Spirit by the applicant to Oil Marketing Companies for the period 01.04.2002 to 31.03.2003 ?

(ii) Whether in facts and circumstances of the present case, the Tribunal erred in not remitting the levy of interest under Section 6A(2) of the Act beyond three years from the end of financial year ?"

2 This is an application by a Government company filed under Section

21(2)(b) of the Erstwhile Bombay Sales of Motor Spirit Taxation Act 1958

(the Act). Applicant is aggrieved by the judgment dated 27 th October 2023

passed by the Maharashtra Sales Tax Tribunal (Tribunal) in Reference

Application No.6 of 2022. Appellant had filed the said Reference

Application in Revision Application No.7 of 2014 for F.Y.-2002-2003

challenging the common judgment and order dated 1 st September 2022. By

the impugned judgment, the Tribunal has dismissed the said Reference

Meera Jadhav

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Application No.6 of 2022 filed by applicant and refused to draw up a

statement of case and to refer to this court any questions of law arising out

of the common judgment and order dated 1st September 2022.

3 After the application was heard for sometime, the Learned Advocate

General on instructions and in fairness agreed with the court that the

questions of law, and in particular, first question proposed by applicant

requires consideration. As regards the proposed second question of law, the

court felt that it will be consequential to the answer that this court would

give to the first question proposed and if the answer to first question is in

favour of revenue, at that stage, the court can consider for what period

interest would be payable.

4 Therefore, the Tribunal is directed to draw the statement of case and

refer to this court the first question of law mentioned in paragraph 1 above.

5 At the hearing of the reference, parties may argue on the issue of levy

of interest under Section 6A(2) of the Act and the period. Tribunal shall

draw the reference and refer the same to this court by 31st March 2024.

6 Application disposed.

(Dr. NEELA GOKHALE, J.)                                (K. R. SHRIRAM, J.)




Meera Jadhav