The Maharashtra Settlement of Arrears in Disputes Act, 2016

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MAHARASHTRA ACT No. XVI OF 2016.
(First Published, after having received the assent of the Governor in the
“Maharashtra Government Gazette”, on the 26th April 2016).
An Act to provide for settlement of arrears in dispute under various Acts
administered by the Sales Tax Department and the matters connected
therewith or incidental thereto.
WHEREAS it is expedient to provide for settlement of arrears in dispute
under the Bombay Sales of Motor Spirit Taxation Act, 1958 (since repealed),
the Bombay Sales Tax Act, 1959 (since repealed), the Maharashtra Sales Tax
on the Transfer of the Right to use any Goods for any Purpose Act, 1985
(since repealed), the Maharashtra Sales Tax on the Transfer of Property in
Goods involved in the Execution of Works Contract (Re-enacted) Act, 1989
(since repealed), the Central Sales Tax Act, 1956, the Maharashtra Purchase
Tax on Sugarcane Act, 1962, the Maharashtra State Tax on Professions, Trades,
Callings and Employments Act, 1975, the Maharashtra Tax on Entry of Motor
Vehicles into Local Areas Act, 1987, the Maharashtra Tax on Luxuries Act,
Bom.
LXVI of
1958.
Bom. LI
of 1959.
Mah.
XVIII of
1985.
Mah. XXXVI
of 1989.
74 of 1956.
Mah. IX
of 1962.
Mah. XVI
of 1975 .
Mah. XLII
of 1987.
Mah. XLI
of 1987.
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RNI No. MAHENG/2009/35528
In pursuance of clause (3) of article 348 of the Constitution of India, the following translation
in English of the Maharashtra Settlement of Arrears in Disputes Act, 2016 (Mah. Act No. XVI of
2016), is hereby published under the authority of the Governor.
By order and in the name of the Governor of Maharashtra,
N. J. JAMADAR,
Secretary and R.L.A. to Government,
Law and Judiciary Department.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
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(1)
2 ¨É½þÉ®úɹ]Åõ ¶ÉɺÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, BÊ|É±É 26, 2016/´Éè¶ÉÉJÉ 6, ¶ÉEäò 1938
1987, the Maharashtra Tax on the Entry of Goods into Local Areas Act, 2002
and the Maharashtra Value Added Tax Act, 2002 ; it is hereby enacted in the
Sixty-seventh Year of the Republic of India as follows :–––
1. (1) This Act may be called the Maharashtra Settlement of Arrears in
Disputes Act, 2016.
(2) It extends to the whole of the State of Maharashtra.
(3) It shall come into force on the date of publication in the Official
Gazette.
2. (1) In this Act, unless the context otherwise requires,—
(1) “appellate authority” means the authorities specified in section
8 of this Act ;
(2) “arrears in dispute” includes,––
(i) tax, by whatever name called, under the relevant Act;
(ii) interest payable by an applicant under the relevant Act;
(iii) penalty imposed upon the applicant under the relevant Act ,
in respect of any statutory order pertaining to any period ending on
or before the 31st March 2012, against which appeal is filed and stay in
full or part has been granted by the appellate authority  under the
relevant Act or, as the case may be, by the Tribunal or Court, not later
than 30th September 2016 ;
(3) “applicant” means a person, who is liable to pay tax under the
relevant Act and also includes any person who desires to avail the benefit
of settlement by complying with the conditions under this Act ;
(4) “order of settlement” means an order issued under this Act for
settlement of arrears in dispute under the relevant Act ;
(5) “Commissioner” means a officer appointed as the Commissioner
of Sales Tax under sub-section (1) of section 10 of the Maharashtra Value
Added Tax Act, 2002 ;
(6) “designated authority” means an authority specified in sub-
section (2) of section 3 of this Act ;
(7) “relevant Act” means,–––
(a) the Central Sales Tax Act, 1956 ;
(b) the Bombay Sales of Motor Spirit Taxation Act, 1958 ;
(c) the Bombay Sales Tax Act, 1959 ;
(d) the Maharashtra Purchase Tax on Sugarcane Act, 1962 ;
(e) the Maharashtra State Tax on Professions, Trades, Callings
and Employments Act, 1975 ;
(f) the Maharashtra Sales Tax on the Transfer of the Right to use
any Goods for any Purpose Act, 1985 ;
(g) the Maharashtra  Tax on  Entry of Motor Vehicles into Local
Areas Act, 1987 ;
Short title,
extent and
commencement.
Definitions.
Mah.IX
of 1962.
Bom. LXV
of 1958.
Bom. LI
of 1959.
Mah.
XVIII of
1985.
Mah. IV
of 2003.
Mah.IX
of 2005.
Mah.IX
of 2005.
74 of
1956.
Mah.XVI
of 1975.
Mah.
XLII of
1987.
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(h) the Maharashtra Tax on Luxuries Act, 1987 ;
(i) the Maharashtra  Sales Tax on the Transfer of Property in
Goods involved in the Execution of  Works Contract (Re-enacted) Act,
1989 ;
(j) the Maharashtra  Tax on  Entry of Goods into Local Areas Act,
2002 ;
(k) the Maharashtra Value Added Tax Act, 2002,
and includes the rules made or notifications issued thereunder ;
(8) “requisite amount” means an amount required to be paid as
specified under section 6 of this Act;
(9) “statutory order” means any order passed under the relevant
Act, raising tax, interest or penalty payable by the applicant.
(2) Words and expressions used in this Act, but not defined herein shall
have the same meanings as assigned to them under the relevant Act.
3. (1) The State Government hereby appoints Commissioner of Sales
Tax as the Commissioner under this Act , for the purposes of this Act.
(2) The officers mentioned in sub-section ( 2) of section 10 of the
Maharashtra Value Added Tax Act, 2002, shall be the designated authorities
for the purposes of this Act. The subordination of the said officers shall be as
per rule 5 of the Maharashtra Value Added Tax Rules, 2005.
(3) The Commissioner may, by notification in theOfficial Gazette, delegate
such powers to the designated authorities as specified in sub-section ( 2) and
such authorities shall, within their jurisdiction, exercise the powers over
such area or areas, as notified, from time to time.
4. (1) The applicant who desires to settle the arrears in dispute shall
submit the application to the designated authority, upto the 30th September
2016 in such form and in such manner, along with the proof of payment of
requisite amount as per sub-section ( 1) or ( 2) of section 6 of this Act.
(2) A separate application shall be made by an applicant for each statutory
order, under each of the relevant Act.
(3) The applicant shall produce the proof of withdrawal of appeal, if
any, as per section 5.
(4) The applicant shall pay the full amount of undisputed arrears under
the relevant Act in respect of the statutory order for which waiver is sought.
5. The applicant who desires to avail the waiver under this Act with
respect to the arrears in dispute shall withdraw the appeals pending before
the appellate authority or Tribunal or, as the case may be, before the Court
on or before the 30th September 2016 :
Provided that, where the applicant desires to opt for settlement of arrears
in dispute for some of the issues raised in appeal then he shall withdraw the
appeal in respect of such issues.
Mah. XLI
of 1987.
Mah.
XXXVI of
1989.
Mah. IV
of 2003.
Mah. IX
of 2005.
Designated
authority.
Conditions for
settlement.
Withdrawal of
appeal.
Mah. IX
of 2005.
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6. (1) Where the arrears in disputes pertain to any assessment period
ending on or before the 31st March 2005 under the relevant Act, then the
extent of waiver shall be in excess of the requisite amount payable as specified
in column (2) of the Table as below :–––
TABLE-1
Type of Conditions for  Waiver Extent of  Waiver
Arrears
(1) (2) (3)
Arrears in (i) The applicant shall pay whole (a) Total amount of
disputes amount of tax out of arrears in interest and penalty
related to disputes after reducing it by the out of arrears in
section 5 of part payment covered by sub- disputes pertaining to
this Act. section (4) of this section. issues withdrawn as
provided in section 5.
(ii) In case, where the appeal is (b) Total amount of
withdrawn for some of the issues, post assessment
then the applicant shall pay the penalty and interest,
whole amount of tax relating to accrued upto date of
such issues withdrawn in appeal payment of tax made
and credit of part payment covered as per column (2) and
by sub-section ( 4) of this section such penalty and
will be given in proportion to tax interest on payment of
involved in the issues withdrawn tax considered under
in appeal. sub-section (4) of this
section pertaining to
issues withdrawn as
provided in section 5.
(2) Where the arrears in disputes pertain to any assessment period on
or after the 1st April 2005  and ending upto the 31st March 2012 under the
relevant Act, then the extent of waiver shall be in excess of the requisite
amount payable as specified in column (2) of  the Table as below :––
TABLE-2
Type of Conditions for Extent of  Waiver
Arrears Waiver
(1) (2) (3)
Arrears in (i) The applicant shall pay whole (a) Balance amount
disputes amount of tax  and twenty five of interest, whole
related to per cent. of outstanding interest amount of penalty
section 5 of out of arrears in disputes after out of arrears in
this Act. reducing it by the part payment disputes, pertaining
covered by sub-section ( 4) of to issues withdrawn
this section. as provided in
section 5.
Determination
of requisite
amount and
extent of
waiver.
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(ii) In case, where the appeal is (b) total amount of
withdrawn for some of the issues, post assessment
then the applicant shall pay the interest and
whole amount of tax and twenty penalty accrued
five per cent. of outstanding upto date of
interest out of arrears in disputes payment of tax made
relating to the issues withdrawn as per column (2) and
in appeal and credit of part on payment of tax
payment covered by sub-section considered under
(4) of this section will be given in sub-section (4) of this
proportion to the tax involved in section pertaining to
issues withdrawn in appeal. issues withdrawn as
provided in section 5.
(3) The payment of requisite amount under sub-sections ( 1) and ( 2) of
this section, shall be made in the form of Challan prescribed under the
relevant Act or, as the case may be, in Form MTR-6 prescribed under the
Maharashtra Value Added Tax Rules, 2005.
(4) Notwithstanding anything contained in any provision under  the
relevant Act, the part payment made in appeal before the appellate authority,
under the relevant Act, Tribunal or Court, shall be considered for payment
of the requisite amount under this Act, and it shall first be adjusted against
the tax and thereafter towards the amount of interest and the balance amount
remaining unadjusted shall then be adjusted towards the penalty.
(5) The extent of waiver as per this section shall be granted in proportion
of the payment made under sub-sections ( 1) and ( 2) of this section by the
applicant.
7. (1) The designated authority may, issue a defect notice for the
incomplete or incorrect application. The applicant shall within fifteen days
from the receipt of the notice ,correct the defects and make the payment, if
any, and submit to the designated authority accordingly. If the applicant
fails to do so then, the designated authority may, for reasons to be recorded
in writing and after giving an opportunity of being heard, may reject the
application for settlement of the arrears in dispute by an order.
(2) The designated authority shall, on receipt of application alongwith
proof of withdrawal of appeal, payment of requisite amount, and being satisfied
that all conditions for waiver are fullfilled, pass an order for each application
for settlement of arrears in dispute.
(3) Notwithstanding anything contained in the relevant Act, the applicant
shall be discharged from his liability to make payment of the amount of such
arrears in dispute under the relevant Act for which the order of settlement
has been passed.
(4) The designated authority may, on his own motion or on application
of the applicant, within thirty days from the date of receipt of order by the
applicant under sub-section ( 2) of this section, rectify any error apparent on
the face of the record :
(1) (2) (3)
TABLE-2—Contd.
Disposal of
application.
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Provided that, no such order adversely affecting the applicant shall be
passed without giving a reasonable opportunity of being heard to the applicant.
8. (1) An appeal against the order passed under sub-section (1) of section
7 shall lie to,–––
(a) the Deputy Commissioner, if order is passed by the authority
subordinate to him,
(b) the Additional Commissioner, if the order is passed by the Deputy
Commissioner or the Joint Commissioner.
(2) The applicant may file an appeal against the order under sub-section
(1) of section 7, before the appellate authority within sixty days from date of
receipt of the order.
(3) No appeal shall lie against the order of settlement passed under sub-
section (2) of section 7.
9. Under any circumstances, the applicant shall not be entitled to
refund of any amount of arrears in disputes paid prior to the date of
commencement of this Act and the amount paid under this Act.
10. Notwithstanding anything contained in section 7, where it appears
to the designated authority that, the applicant has obtained the benefit of
settlement, by suppressing any material information or particulars or by
furnishing any incorrect or false information or, if any suppression of material
facts, concealment of any particulars is found in the proceedings related to
search and seizure under the relevant Act, then the designated authority
may, for reasons to be recorded in writing and after giving the applicant a
reasonable opportunity of being heard, may revoke the order of settlement
issued under sub-section ( 2) of section 7.
11. After an order is passed by the designated authority, the
Commissioner may, on his own motion, at any time, within twelve months
from the date of service of order, call for the record of such order and after
notice of error in such order, in so far as it is prejudicial to the interest of
revenue, may serve on the dealer a notice and pass an order to the best of his
judgement, where necessary.
12. (1) The Commissioner may, from time to time, issue instructions
and directions as he may deem fit to the designated authorities for carrying
out the purposes of this Act.
(2) The Commissioner may, by an order specify the forms for the purpose
of this Act.
13. (1) The State Government may, by notification in theOfficial Gazette
make rules to carry out the purposes of this Act.
(2) Every rule made under this section shall be laid, as soon as may be,
after it is made, before each House of the State Legislature while it is in session
for a total period of thirty days, which may be comprised in one session or in
two or more successive sessions, and if, before the expiry of the session in
which it is so laid or the session immediately following, both Houses agree in
making any modification in the rule or both Houses agree that the rule should
not be made, and notify such decision to that effect in the Official Gazette, the
rule shall, from the date of publication of such notification, have effect only in
such modified form or be of no effect, as the case may be; so, however, that any
such modification or annulment shall be without prejudice to the validity of
anything previously done or omitted to be done under that rule.
Appeal.
No refund
under the Act.
Revocation of
order of
settlement.
Review.
Powers of
Commissioner
under the Act.
Power to
make rules.
ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY SHRI PARSHURAM JAGANNATH
GOSAVI, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT
DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, 21-A,NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004,
EDITOR : SHRI PARSHURAM JAGANNATH GOSAVI.

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