Authority: High Court of Judicature at Bombay
Order Date: 8 October 2026
Case Overview
- Parties: Commissioner of Sales Tax, Maharashtra State (Applicant) versus Hindustan Spinning and Weaving Mills Limited (Respondent).
- Reference: Sales Tax Reference No. 39 of 2017 concerning the applicability of Section 7 of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee Act, 2023.
- Legal Issue: Whether arrears determined for the specified period, as on 30 April 2023, and amounting to Rs 2 lakhs or less per financial year can be written off under the Act.
- Facts: The arrears in the present case were less than Rs 2 lakhs.
Court Reasoning
- The Court accepted the submission of Ms. Jyoti Chavan, learned Addl. GP for the Applicant, that Section 7 permits write‑off of arrears up to Rs 2 lakhs per FY as of 30 April 2023.
- The Court observed that while the present reference involves arrears below the threshold, other proceedings may arise where arrears exceed Rs 2 lakhs, necessitating a separate legal determination.
Final Outcome
- The reference is disposed of with the question(s) of law left open for determination in any other appropriate reference.
- The reference is returned unanswered.
Topics: Taxation, Legal Dispute