¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, BÊ|É±É 26, 2016/´Éè¶ÉÉJÉ 6, ¶ÉEäò 1938

1
RNI No. MAHENG/2009/35528

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+ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö

´É¹ÉÇ 2, +ÆEò 29(2)]

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[ {ÉÞ¹`ä 6, ËEò¨ÉiÉ : ¯û{ÉªÉä 27.00

+ºÉÉvÉÉ®úhÉ Gò¨ÉÉÆEò 49

|ÉÉÊvÉEÞòiÉ  |ÉEòÉ¶ÉxÉ

¨É½þÉ®úÉ¹]Åõ  Ê´ÉvÉÉxÉ¨ÉÆb÷³ýÉSÉä  +ÊvÉÊxÉªÉ¨É  ´É  ®úÉVªÉ{ÉÉ±ÉÉÆxÉÒ  |ÉJªÉÉÊ{ÉiÉ  Eäò±Éä±Éä  +vªÉÉnäù¶É  ´É  Eäò±Éä±Éä  Ê´ÉÊxÉªÉ¨É  +ÉÊhÉ  Ê´ÉÊvÉ  ´É  xªÉÉªÉ
Ê´É¦ÉÉMÉÉEòbÚ÷xÉ  +É±Éä±ÉÒ  Ê´ÉvÉäªÉEäò  (<ÆOÉVÉÒ  +xÉÖ´ÉÉnù).

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.

----------------------------------

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under the Bombay Sales of Motor Spirit Taxation Act, 1958 (since repealed),
the Bombay Sales Tax Act, 1959 (since repealed), the Maharashtra Sales Tax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(since  repealed),  the  Maharashtra  Sales  Tax  on  the  Transfer  of  Property  in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(since repealed), the Central Sales Tax Act, 1956, the Maharashtra Purchase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,

¦ÉÉMÉ  +É`ö  49-1

(1)

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.

2

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®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 :–––

Mah. IV
of  2003.
Mah.IX
of  2005.

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.

Short  title,
extent  and
commencement.

(3)
Gazette.

It  shall  come  into  force  on  the  date  of  publication  in  the Official

Definitions.

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 ;

Mah.IX
of  2005.

(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 ;

74  of
1956.
Bom.  LXV
of  1958.
Bom.  LI
of  1959.
Mah.IX
of  1962.
Mah.XVI
of  1975.

Mah.
XVIII  of
1985.

Mah.
XLII  of
1987.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, BÊ|É±É 26, 2016/´Éè¶ÉÉJÉ 6, ¶ÉEäò 1938

3

Mah.  XLI
of  1987.

Mah.
XXXVI  of
1989.

Mah.  IV
of  2003.

Mah.  IX
of  2005.

(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.

Designated
authority.

Mah.  IX
of  2005.

(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 the Official 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.

Conditions  for
settlement.

(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.

¦ÉÉMÉ  +É`ö  49-2

Withdrawal  of
appeal.

4

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, BÊ|É±É 26, 2016/´Éè¶ÉÉJÉ 6, ¶ÉEäò 1938

Determination
of  requisite
amount  and
extent  of
waiver.

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 :–––

Type  of
Arrears
(1)

TABLE-1

Conditions  for    Waiver

Extent of   Waiver

(2)

(3)

Arrears  in
disputes
related  to
section 5 of
this  Act.

(i) The applicant shall pay whole
amount of tax out of arrears in
disputes  after  reducing  it  by  the
part payment covered  by sub-
section (4)  of  this  section.

(ii) In case, where the appeal is

withdrawn for some of the issues,
then the applicant shall pay the
whole amount of tax relating to
such  issues  withdrawn  in  appeal
and credit  of part  payment covered
by sub-section (4) of this section
will  be  given in  proportion  to  tax
involved  in  the  issues  withdrawn
in  appeal.

(a) Total amount of

interest  and  penalty
out of arrears in
disputes  pertaining  to
issues  withdrawn  as
provided  in  section  5.

(b) Total amount of
post  assessment
penalty and  interest,
accrued  upto  date  of
payment of tax made
as per column (2) and
such penalty and
interest  on payment  of
tax  considered  under
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 :––

Type  of
Arrears
(1)

Arrears  in
disputes
related  to
section 5 of
this  Act.

TABLE-2

Conditions  for
Waiver
(2)

(i) The applicant shall pay whole
amount of tax  and twenty five
per  cent.  of  outstanding  interest
out of  arrears in  disputes after
reducing it by the part payment
covered  by  sub-section  (4)  of
this  section.

Extent of   Waiver

(3)

(a) Balance amount
of  interest,  whole
amount  of  penalty
out of arrears in
disputes,  pertaining
to  issues  withdrawn
as  provided  in
section  5.

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, BÊ|É±É 26, 2016/´Éè¶ÉÉJÉ 6, ¶ÉEäò 1938

5

(1)

(2)

(3)

TABLE-2—Contd.

(ii) In case, where the appeal is

withdrawn for some of the issues,
then the applicant shall pay the
whole amount of tax and twenty
five  per  cent.  of  outstanding
interest  out  of  arrears  in  disputes
relating  to  the  issues  withdrawn
in appeal and credit of part
payment  covered  by  sub-section
(4) of this section will be given in
proportion  to  the  tax  involved  in
issues  withdrawn  in  appeal.

(b) total amount of
post  assessment
interest and
penalty  accrued
upto  date  of
payment of tax made
as per column (2) and
on payment of tax
considered  under
sub-section (4) of this
section  pertaining  to
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 :
¦ÉÉMÉ  +É`ö  49-2+

Disposal  of
application.

6

¨É½þÉ®úÉ¹]Åõ ¶ÉÉºÉxÉ ®úÉVÉ{ÉjÉ +ºÉÉvÉÉ®úhÉ ¦ÉÉMÉ +É`ö, BÊ|É±É 26, 2016/´Éè¶ÉÉJÉ 6, ¶ÉEäò 1938

Provided  that,  no  such  order  adversely  affecting  the  applicant  shall  be
passed without giving a reasonable opportunity of being heard to the applicant.
(1) An appeal against the order passed under sub-section (1) of section

8.

Appeal.

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.

No  refund
under  the  Act.

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.

Revocation  of
order  of
settlement.

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.

Review.

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.

Powers  of
Commissioner
under  the  Act.

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.

Power  to
make  rules.

13.

(1) The State Government may, by notification in the Official 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.

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.

