STRESSED ASSETS STABILIZATION FUND Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) Maharashtra Value Added Tax Appeal No.16 of 2016 challenges the order dtd. 4/6/2015 [hereinafter referred to as "impugned order No.1"or the "1st impugned order"] passed by the Maharashtra Sales Tax Tribunal (for short "the MSTT") in VAT Appeal No.23 of 2014. By impugned order No.1, the MSTT confirmed the Determination Order dtd. 28/3/2014 (for short "the DDQ Order") passed by the Commissioner of Sales Tax under Sec. 56(1) of the Maharashtra Value Added Tax, 2002 (for short "the MVAT Act") inter alia holding that the Appellant is a "deemed dealer" as per the Explanation to Sec. 2(8) of the said Act. Maharashtra Value Added Tax Appeal No.16 of 2016 was admitted vide order dtd. 30/8/2016 on the following three questions of law:-

(2.) Maharashtra Value Added Tax Appeal No.2 of 2020 challenges the order dtd. 24/2/2020 [hereinafter referred to as "impugned order No.2" or the "2nd impugned order"] passed the Larger Bench of the MSTT denying the Appellant the benefit of prospective effect to the DDQ Order passed by the Commissioner of Sales Tax. To put it simply, the Commissioner of Sales Tax, by the DDQ Order, [under sec. 56(2) of the MVAT Act], denied the Appellant the benefit of prospective effect to the said DDQ Order. This part of the DDQ Order was confirmed by the Larger Bench of the MSTT. The Larger Bench was constituted to decide the issue of prospective effect because initially when the DDQ Order passed the Commissioner of Sales Tax was challenged before the MSTT, a two member bench of the MSTT, whilst upholding the DDQ Order in so far as it held that the Appellant is a "deemed dealer" under the MVAT Act [impugned order No.1], had a difference of opinion on whether the Appellant was entitled to the benefit of prospective effect. It is in these circumstances, that a Larger Bench was constituted pursuant to an order passed by this Court on 22/11/2017 in MVAT Appeal No.46 of 2017. This order of the Larger Bench is challenged in Maharashtra Value Added Tax Appeal No.2 of 2020. This Appeal was admitted on 19/7/2023 on the following four questions of law:-

(3.) Both the above Appeals have now come up for hearing and final disposal before us. Before we proceed to decide the questions of law raised in both the aforesaid Appeals, it would be necessary to set out some facts. Since the facts in both the Appeals are identical, we will refer to the facts as we go along.