VAT levy on royalty already subject to Service Tax challenged, Section 14 Limitation Act benefit granted

The Bombay HC disposed of a petition concerning VAT levy on royalty already subject to Service Tax. The court addressed jurisdictional issues regarding assessment orders dated 29 March 2019 and 31 March 2020, which respondent contended should have been passed by Kalyan jurisdiction rather than Mazgaon. The court granted petitioner benefit under Section 14 of Limitation Act for time spent in proceedings from 11 November 2022. For assessment years 2010-11 and 2011-12, petitioner was granted six weeks to file statutory appeal, which would be decided on merits without limitation objections.

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Issues involved:
The issues involved in the judgment include the levy of VAT on royalty payments, jurisdiction of Assessing Officers, assessment orders for various years, service of orders, and the right to appeal.

Levy of VAT on Royalty Payments:
The petitioners sought a declaration that the levy of VAT on royalty payments, on which Service Tax has already been paid, is without authority of law and in excess of jurisdiction. They also contended that multiple divisions cannot simultaneously seek to pass orders to levy VAT. The High Court permitted the petitioners to challenge the assessment orders through the remedy of an appeal as provided under the law.

Jurisdiction of Assessing Officers:
The judgment highlighted the jurisdictional issues regarding assessment orders passed by officers from Kalyan and Mazgaon divisions for different assessment years. The court noted discrepancies in the service of orders and allowed the petitioners to file statutory appeals within specified timelines.

Assessment Orders for Various Years:
The court examined assessment orders for the years 2008-09 to 2013-14 passed by Assessing Officers from different jurisdictions. It was observed that some orders were served late, leading to disputes over jurisdiction and service. The respondents agreed to withdraw certain orders, enabling the petitioners to seek refunds and withdraw pending appeals.

Service of Orders and Right to Appeal:
Disputes arose over the service of assessment orders, with the petitioners claiming late receipt of orders through email. The judgment allowed the petitioners to challenge the assessment orders through appeals, ensuring their right to present all contentions in the appeal proceedings. The court also granted the petitioners the benefit of the Limitation Act for the period spent pursuing the case.

Separate Judgment by Judges:
No separate judgment was delivered by the judges in this case.

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