MAHINDRA & MAHINDRA LIMITED GATEWAY BUILDING, APOLLO BUNDER MUMBAI Vs. STATE OF MAHARASHTRA THROUGH SECRETARY MINISTRY IF FINANCE, MANTRALAYA, MUMBAI

JUDGEMENT

(1.) The petitioner, a company incorporated under the Companies Act, engaged in the manufacture and sale/resale of automobiles and spareparts has invoked the writ jurisdiction of this Hon'ble Court praying for quashing and setting aside the order dated 31st March 2016 passed by the Deputy Commissioner of Sales Tax, Nashik Division under Section 9(2) of the Central Sales Tax Act, 1956 read with Section 25 of the Maharashtra Value Added Tax Act, 2002 (for short 'MVAT Act') for the assessment year 2006-2007. A writ is sought to quash and set aside the said order and its retrospective effect in case of the petitioner company and it is alleged that the said order is passed without jurisdiction and also against the settled principle of law as enunciated in the various judgments delivered by this Court as well as by the Hon'ble Apex Court.

(2.) The petitioner company was registered as a dealer under the Bombay Sales Tax Act, 1959 and is also registered as a dealer under Section 16 of the Maharashtra Value Added Tax, 2002 (for short 'MVAT Act') and the certificate of registration came into effect from 01.04.2006. The respondent No.1 is a State of Maharashtra through the Secretary Ministry of Finance whereas respondent No.2 is an authority under the MVAT Act, 2002 and discharging the duties under the Act and the Rules made thereunder.

(3.) Before adverting to the controversy involved in the present petition we would delve into the antecedent events which would be necessary to be referred to for an effective adjudication of the present Writ Petition. The existing regime of the Bombay Sales Tax Act, 1959, empowered the State Government under Section 41 to grant Tax exemption either in full or in part in public interest. The Package Scheme of Incentives are a reflection of the exercise of said powers conferred on the State Government. Section 41 read thus :