I. SUPREME COURT
26. VVF India Ltd. vs. State of Maharashtra
2023 (72) GSTL 444 (S.C.)
Date of order: 3rd December, 2021
Amount paid under protest before passing of assessment order can be adjusted against amount of mandatory pre-deposit for filing an appeal as per section 26(6A) of MVAT Act, 2002.
FACTS
The petitioner was issued a SCN notice demanding payment of tax along with interest. It submitted a reply contesting the said demand. During the course of personal hearing, an amount was deposited comprising of tax and interest under protest. Later, an assessment order was passed by respondent imposing tax along with penalty after adjusting the amount paid under protest. The petitioner filed an appeal against the order of assessment which was rejected by the appellate authority on the ground that payment made under protest could not be considered towards mandatory pre-deposit as per section 26(6A) of MVAT Act, 2002. Further, the Hon’ble High Court also dismissed the petition contending that petitioner was duty bound to deposit 10 per cent of total tax liability after adjusting the amount already paid under protest, prior to the said order. Being aggrieved, petitioner preferred this petition before the Hon’ble Supreme Court.
HELD
The Hon’ble Supreme Court held that section 26(6A) of MVAT Act, 2002 does not spe
