NITIN SITARAM BORADE Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) By this petition, the petitioners challenge the notification dated 21st November 2005 issued by the respondent No. 2, the Commissioner of Sales Tax, Maharashtra State under Section 17 of the Maharashtra Value Added Tax Act, 2002 (for short "MVAT Act").

(2.) Learned Counsel for the petitioners canvassed two grounds of challenge. She firstly submitted that the exercise of power by the respondent No. 2 in issuing of the notification was not in conformity with Sections 3, 16 and 17 of the MVAT Act. Secondly, she submitted that by the notification dated 21st November 2005, the Commissioner directed that in case of the dealers under the Bombay Sales Tax Act who did not make an application for registration under MVAT Act before 31st December 2005, their existing certificates shall stand cancelled with effect from 1st January 2006. The time given was only 40 days which was too short and therefore the notification was invalid.

(3.) Prior to the year 2002, there existed several laws in the State of Maharashtra relating to imposition of tax on sales, such as the Bombay Sales of Motor Spirit Tax Act, 1958, the Bombay Sales Tax Act, 1958, the Maharashtra Sales Tax Act, 1979 and the Maharashtra Sales Tax on the Transfer of Property in Goods involved in the Execution of Works Contract (Reenacted) Act, 1989. With a view to consolidate and amend the laws relating to the levy and collection of tax on the sale or purchase of certain goods in the State of Maharashtra, the Legislature of Maharashtra enacted the MVAT Act (Maharashtra Act No. 9 of 2005) which came into force with effect from 1st April 2005.