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High Court held there was sufficient territorial nexus for MVAT Act to apply
High Court held there was sufficient territorial nexus for MVAT Act to apply
Petitioner was in the bunker supplies business. It was a registered dealer for VAT and CST. It claimed exemption on MVAT on sale of high speed diesel oil. Deputy Commissioner denied exemption. Assessing Authority passed assessment order levying interest u/s 30(3) and penalty u/s 29(3). High Court held that there was sufficient territorial nexus for MVAT Act to apply, as supply of oil was within Indian territorial waters.-900232
1. Petitioner was registered dealer under the MVAT Act and the Central Sales Tax Act, 1956, and was in the Bunker Supplies business.
2. Petitioner has claimed exemption from payment of MVAT on sale of High Speed Diesel Oil.
3. Deputy Commissioner, after a search, held that petitioner was not entitled to exemption.
4. The Assessing Authority passed assessment order levying interest u/s 30(3) and penalty u/s 29(3).Petitioned challenged it by filing a writ petition in the High Court.
The High Court held as under:
5. The Petitioner has all through out claimed exemption under Notification and now cannot be allowed to take a stand that the sale is in territorial waters which is not part of Maharashtra and beyond taxing powers for that reason.
6. So far as the applicability of exemption Notification is concerned, least to say is that the Notification is not at all applicable to the transactions of the Petitioner.
7. Therefore, there is sufficient territorial nexus for the Maharashtra Value Added Tax Act to apply and to be invoked to the later sale by the Petitioner of the same goods to M/s. Leighton and other entities similarly placed.
Case Reference - M/S. Raj Shipping vs The State Of Maharashtra.
Bombay High Court
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