2012 (12) TMI 964

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....nted a stay of the order dated April 4, 2012 of the Collector of Motor Spirit Sales Tax, Maharashtra ("the Collector") subject to a payment of Rs. 8 lacs. Brief facts are as under: (a) Petitioner No. 1 is a public sector undertaking under the Ministry of Petroleum, New Delhi, engaged in the business of buying and selling petroleum products. Petitioner No. 1 is, inter alia, registered under the Bombay Sales of Motor Spirit Taxation Act, 1958 ("the Act"). (b) For the year 1989-90, the petitioner had submitted its statement for payment of tax under the Act. In its return the petitioner had claimed exemption from tax in respect of sales of high speed diesel (HSD) made to fishermen Co. operative societies under notification dated April ....

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....isposal of the revision application on payment of 30 per cent of the amount due, i.e., of Rs. 8 lacs. On merits the Tribunal held that A forms submitted by the fishermen society for the purposes of claiming the benefit of exemption was not complete and thus the exemption was not available. The Tribunal also held that the issue arising before it was a debatable issue. Mr. P.V. Surte, learned counsel, in support of the petition submits: (a) that under section 17 of the Act, there was no requirement of predeposit as required under section 16 of the Act. Therefore, the deposit of Rs. 8 lacs for the purposes of staying the order dated April 4, 2012 of the Collector was uncalled for; (b) having held that the issue before it is debatable ....

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....nt on the part of the petitioner to defraud the revenue. The exemption is being denied in respect of sales/ supply of HSD made to fishermen society on the ground that the societies were not holding a licence under the Act. However, there is no allegation in the proceeding of any collusion between fishermen Co.op. societies and the petitioners. Therefore, prima facie it appears that the remedy under section 7A(2) of the Act would be available against the fishermen's societies for the breach, if any. The Tribunal itself records in its order dated August 28, 2012 that the issue arising before them is debatable. Further, we find that the petitioner for the year 1989-90 had paid an amount of Rs. 8.73 crores as tax under the Act. In light of ....