Pre-deposit regime challenge under Maharashtra VAT law: petitioners directed to pursue appellate remedy with limited interim protection.

The Bombay High Court dealt with a challenge to the amended pre-deposit regime under the Maharashtra Value Added Tax Act, 2002, in relation to Sections 26(6A), 26(6B) and 26(6C). Noting that the legal position on the retrospective amendment and pre-deposit requirement had already been settled by the Supreme Court, and that the petitioners intended to pursue the statutory appellate remedy, the Court permitted recourse to the appellate authority or tribunal. It also granted only limited interim protection to enable filing of appeals, while keeping all contentions open and expressing no view on the merits.

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Issues: Whether the petitioners should be relegated to the appellate remedy and permitted to file appeals with applications for condonation of delay and waiver of pre-deposit in view of the settled position on the challenge to Section 26(6A), 26(6B) and 26(6C) of the Maharashtra Value Added Tax Act, 2002.

Analysis: The batch concerned a challenge to the amended pre-deposit regime under the Maharashtra Value Added Tax Act, 2002. The legal position on the retrospective amendment and the pre-deposit requirement had already been settled by the Supreme Court, and the petitioners stated that they intended to pursue the statutory appellate remedy with appropriate ancillary applications. In these circumstances, the Court found it appropriate to permit recourse to the appellate authority or tribunal. Limited protection was also granted only to enable the filing of appeals, without expressing any view on the merits.

Outcome: The petitions were disposed of by directing the petitioners to approach the appellate authority or tribunal by filing appeals with applications for condonation of delay and waiver of pre-deposit within four weeks, with all contentions kept open and interim protection limited to that purpose.

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