L. A. BILL No. LXVIII OF 2018.

A BILL

further to amend the Maharashtra Value Added Tax Act, 2002.

WHEREAS both Houses of the State Legislature were not in session ;

AND WHEREAS the Governor of Maharashtra was satisfied that

circumstances existed which rendered it necessary for him to take immediate action

further to amend the Maharashtra Value Added Tax Act, 2002, for the purposes

hereinafter appearing ; and, therefore, promulgated the Maharashtra Value Added

Tax (Amendment) Ordinance, 2018 on the 24th October 2018 ;

AND WHEREAS it is expedient to replace the said Ordinance by an Act of

the State Legislature ; it is hereby enacted in the Sixty-ninth Year of the Republic

of India as follows :—

Mah. IX

of 2005.

Mah. Ord.

XXIII

of 2018.

(1)

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MAHARASHTRA LEGISLATURE SECRETARIAT

The following Bill was introduced in the Maharashtra Legislative Assembly on the

22th November, 2018 is published under Rule 117 of the Maharashtra Legislative Assembly

Rules :—

RNI No. MAHBIL /2009/40123

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1.

(1) This Act may be called the Maharashtra Value Added Tax

(Amendment) Act, 2018.

(2) It shall be deemed to have come into force on the 24th October 2018.

2.

In section 23 of the Maharashtra Value Added Tax Act, 2002 (hereinafter

referred to as “ the principal Act ”), in sub-section (7),—

(1) for the words “ eighteen months ” the words ‘‘ twenty-four months ” shall

be substituted ;

(2) in the proviso, for the words “ eighteen months ” the words “ twenty-

four months” shall be substituted.

3.

(1) The Maharashtra Value Added Tax (Amendment) Ordinance, 2018,

is hereby repealed.

(2) Notwithstanding such repeal, anything done or any action taken (including

any notification or order issued) under the corresponding provisions of the principal

Act, as amended by the said Ordinance, shall be deemed to have been done, taken

or, as the case may be, issued under the corresponding provisions of the principal

Act, as amended by this Act.

Short title and

commencement.

Mah. IX

of 2005.

Amendment

of section 23 of

Mah. IX

of 2005.

Repeal of

Mah. Ord. XXIII

of 2018 and

saving.

Mah. Ord.

XXIII of

2018.

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3

STATEMENT OF OBJECTS AND REASONS.

Section 23 of the Maharashtra Value Added Tax Act, 2002 (Mah. IX of 2005)

contains the provisions regarding assessment of the value added tax levied

under the said Act. Sub-section (7) of the said section 23, as amended by

Maharashtra Act No. XXXI of 2017, provides that, where a fresh assessment has

to be made under the said section 23 to give effect to the any finding or direction

contained in any order made under the said Act including an order made by the

Tribunal or the High Court or the Supreme Court, then, notwithstanding anything

contained in the said section 23, such assessment shall be made within a period

of eighteen months, if the said order is made by the appellate authority in first

appeal and in any other case, within a period of thirty-six months from the date

of communication of such finding or direction contained in the said order to the

assessing authority or, as the case may be, to the Commissioner. The proviso

to sub-section (7) of the said section 23, as amended by Maharashtra Act No.

XXXI of 2017, provides that, if a certified copy of the said order is supplied by the

dealer concerned to the assessing authority or, as the case may be, to the

Commissioner earlier than the said date of communication, then the said period

of eighteen months or, as the case may be, of thirty-six months shall be counted

from the date of the said supply. Thus, the assessing authority must pass fresh

assessment orders within a period of eighteen months from the date of

communication of such finding or direction contained in the said order to the

assessing authority or, as the case may be, to the Commissioner, if the said

order is made by the appellate authority in first appeal.

Large number of such cases are referred back for fresh assessment to the

assessing authorities under sub-section (7) of the said section 23, from 15th April

2017, for fresh assessment and the tax payers are occupied with various

compliance of the provisions of the laws relating to the Goods and Service Tax

Laws, with effect from 1st July 2017, as well as the tax authorities are engaged

in implementation thereof. In view of this, it was noticed that, such period of

eighteen months envisaged under sub-section (7) of the said section 23 for

completion of fresh assessment in the cases referred back by the first appellate

authority was insufficient for the tax payers to produce the evidence therefor and

the assessment authorities to consider the same and pass the orders regarding

fresh assessment. For giving sufficient time to such class of dealers as well as

to the assessing authorities, for completion of fresh assessment, it was considered

expedient to amend, expeditiously, sub-section (7) of said section 23, suitably, for

extending the said period by six months.

2.

As both Houses of the State Legislature were not in session and the

Governor of Maharashtra was satisfied that circumstances existed which rendered

it necessary for him to take immediate action further to amend the Maharashtra

Value Added Tax Act, 2002 (Mah. IX of 2005), for the purposes aforesaid, the

Maharashtra Value Added Tax (Amendment) Ordinance, 2018 (Mah. Ord. XXIII

of 2018) was promulgated by the Governor of Maharashtra on the 24th October

2018.

3.

The Bill is intended to replace the said Ordinance by an Act of the State

Legislature.

Mumbai,

SUDHIR MUNGANTIWAR,

Dated the 19th November 2018.

Minister for Finance.

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FINANCIAL MEMORANDUM

Clause 2 of the Bill provides for amendment of section 23 of the Maharashtra

Value Added Tax Act, 2002 (Mah. IX of 2005). The said section 23 contains

the provisions regarding the assessment of dealer who is liable to tax. By the

said amendment, the period for completing the fresh assessment under

sub-section (7) of section 23 is being extended for further more period of

six months. There is no provision in the Bill which would involve the recurring or

non-recurring expenditure from the Consolidated Fund of the State on its enactment

as an Act of the State Legislature.

Vidhan Bhavan :

DR. ANANT KALSE,

Mumbai,

Principal Secretary,

Dated the 22nd November 2018.

Maharashtra Legislative Assembly.

ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY I/C DIRECTOR SHRI MANOHAR SHANKAR

GAIKWAD, PRINTED AT GOVERNMENT CENTRAL PRESS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004 AND PUBLISHED AT

DIRECTORATE OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATIONS, 21-A, NETAJI SUBHASH ROAD, CHARNI ROAD, MUMBAI 400 004.

EDITOR : I/C DIRECTOR SHRI MANOHAR SHANKAR GAIKWAD.