A division bench of the Supreme Court today stayed the Bombay High Court judgment in VAT case and passed an interim order extending the deadline for developers in Maharashtra for paying VAT by two months.
The bench of Hon’ble Mr. Justice R.M. Lodha, Mr. Justice A. R. Dave and Mr. Justice Ranjan Gogoi also stayed the Sales tax department notification dated August 6, 2012 asking developers to file their VAT returns by August 31, 2012
The Supreme Court passed the interim order while hearing a Special Leave Petition (SLP) filed by developers’ representative organization MCHI-CREDAI challenging the Bombay High Court order dismissing the writ against the State Government in VAT case.
With this, developers are allowed to pay VAT by October 31, 2012 and register themselves with the Sales Tax Department by October 15, 2012.
The Supreme Court also ruled that in the event of the petitioners succeeding in their SLP, the amount deposited with the Sales Tax department will refunded to them with interest that the court may determine.
By its order, the Division Bench also restrained the State Government for taking coercive steps to collect the tax till October 31, 2012.
Dr. A.M. Singhvi, Sr. Advocate with Mr. Parimal Shroff appeared on behalf of MCHI-CREDAI.
