L. A. BILL No. III OF 2026.
A BILL
further to amend the Maharashtra Settlement of Arrears of Tax, Interest,
Penalty or Late Fee Act, 2025.
WHEREAS it is expedient further to amend the Maharashtra Settlement
of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025, for the purposes
hereinafter appearing ; it is hereby enacted in the Seventy-seventh Year of the
Republic of India as follows :—
1. This Act may be called the Maharashtra Settlement of Arrears of Tax,
Interest, Penalty or Late Fee (Amendment and Validation) Act, 2026.
Mah.
XVII of
2025.
Short title.
RNI No. MAHENG /2009/35528
महाारााष्ट्रट शाासन रााजपत्र
असाधाारण भााग आठ
वर्षष १२, अंक ५]
बुुधवाार, फेेब्रुुवारी २५, २०२६/फाल्गुन ६, शकेे १९४७
[पृष्ठे 4, किं�ंमत : रुपयेे २७.००
असाधाारण क्रमांं�क ६
प्रााधि�कृृत प्रकााशन
महाारााष्ट्र वि�धाानमंडळााचेे अधि�नि�य
म व रााज्यपाालांं�नी प्रख्यापि�त केलेले अध्यादेेश व केलेले
वि�नि�य
म आणि� वि�धि� व न्याय वि�भाागाकडून आलेली वि�धेेयकेे (इंंग्रजी अनुवाद).
In pursuance of clause (3) of article 348 of the Constitution of India, the following translation in
English of the Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late Fee (Amendment
and Validation) Bill, 2026 (L.A. Bill No. III of 2026), introduced in the Maharashtra Legislative
Assembly on the 25th February 2026, is hereby published under the authority of the Governor.
By order and in the name of the Governor of Maharashtra,
SATISH WAGHOLE,
Secretary (Legislation) to Government,
Law and Judiciary Department.
भाग आठ-६–१
2
महाराष्ट्रõ शासन रा
असाधारण भाग आठ, फेब्रुवारी २५,
२०२६/फाल्गुन ६, शके १
2. In section 10 of the Maharashtra Settlement of Arrears of Tax, Interest,
Penalty or Late Fee Act, 2025 (hereinafter referred to as “the principal Act”), in
the Table, in column (4), for the figures, letters and word “31st December 2025”
the figures, letters and word “31st March 2026” shall be substituted.
3. In section 11 of the principal Act, after sub-section (1), the following
provisos shall be added, namely:—
“Provided that, where more than one appeal is filed in respect of the
same statutory order and such appeals involve distinct and severable
issues, the applicant may, for the purpose of availing the benefit under
this Act, fully and unconditionally withdraw the appeal relating to such
distinct and severable issues, without affecting the continuance of the
remaining appeal or appeals:
Provided further that, where any payment of requisite amount has
been made in respect of a statutory order, whether in appeal or otherwise,
on or before the date of commencement of this Act and,–
(a) where such payment is identifiable issue-wise, it shall be adjusted
against the liability relating to the corresponding issue or issues;
(b) where such payment is not identifiable issue-wise, it shall be
adjusted proportionately against the liability arising out of the appeal or
appeals withdrawn under this section and the appeal or appeals which
continue to remain pending, in such manner as may be determined by the
designated authority.”.
4. Notwithstanding anything contained in the Maharashtra Settlement
of Arrears of Tax, Interest, Penalty or Late Fee Act, 2025 (hereinafter
referred to as “the said Act”) or in any judgement, decree or order of
any court, any payment of requisite amount of tax, interest, penalty or
late fee under the relevant Act as defined under the said Act, paid
and collected under the said Act from any applicant, after the 31st December
2025 and till the date of commencement of the Maharashtra Settlement of
Arrears of Tax, Interest, Penalty or Late Fee (Amendment and Validation)
Act, 2026, shall be deemed to be and shall be deemed always to have been duly
and validly paid and collected in accordance with law as if the provisions of the
said Act, as amended by this Act, had been continuously in force at all material
times and accordingly,—
(a) no suit or proceedings shall be maintained or continued in or before
any court or any authority for the refund of any amount received or realised
by way of requisite amount;
(b) no court or any other authority shall enforce any decree or order
directing the refund of any amount received or realised by way of such
requisite amount.
Amendment
of section 10
of Mah. XVII
of 2025.
Mah.
XVII of
2025.
Amendment
of section 11
of Mah. XVII
of 2025.
Validation.
Mah.
XVII of
2025.
Mah.
...... of
2026.
महाराष्ट्रõ शासन रा
असाधारण भाग आठ, फेब्रुवारी २५,
२०२६/फाल्गुन ६, शके १
3
STATEMENT OF OBJECTS AND REASONS
The Maharashtra Settlement of Arrears of Tax, Interest, Penalty or Late
Fee Act, 2025 (Mah. XVII of 2025) has been enacted to provide for settlement
of arrears of tax, interest, penalty or late fee, which were levied, imposed or
payable under the various Acts implemented by the Department of Goods and
Services Tax, Government of Maharashtra, payable by the Corporations, Public
Sector Banks, Departments, Rural or Urban Local Bodies or other Authorities,
Enterprises or Entities, which are registered under Central Acts other than
the Companies Act, 2013 (18 of 2013) or State Acts or are constituted by the
Government Resolutions.
2. Section 10 of the said Act provides 31st December 2025 as the last
date for payment of the requisite amount of tax, interest, penalty or late fee
under the relevant Act. However, it has been observed that several eligible
Public Sector Undertakings and Government entities, though willing to avail
the benefit of settlement, could not complete the process of withdrawal of
appeals and payment of requisite amount within the specified time limit, due
to pendency of appeals at various appellate forums. The State Government has
received several representations from such entities to extend the said last date
of payment. The Government, therefore, considers it expedient to extend the
said last date upto 31st March 2026. It is, therefore, proposed to amend section
10 of the said Act, suitably.
3. It has been observed that, in certain cases, a single statutory
order involves more than one distinct and severable issues and separate
appeals are pending in respect of such issues. The existing provision of
section 11 of the said Act requires withdrawal of appeal as a condition for
settlement. Due to this provision, the applicant has to withdraw the appeal
fully, even though he intends to settle some of the distinct and severable
issue in appeal. It is, therefore, considered expedient to amend section
11 of the said Act to permit withdrawal of appeal only in respect of such
distinct and severable issues in appeal which the applicant intends to settle,
without affecting the continuance of remaining issues in appeals, and to provide
for proportionate adjustment of payments.
4. The Bill seeks to achieve the above objectives.
Mumbai,
DEVENDRA FADNAVIS,
Dated the 23rd February 2026.
Chief Minister.
4
महाराष्ट्रõ शासन रा
असाधारण भाग आठ, फेब्रुवारी २५,
२०२६/फाल्गुन ६, शके १
ON BEHALF OF GOVERNMENT PRINTING, STATIONERY AND PUBLICATION, PRINTED AND PUBLISHED BY DIRECTOR,
RUPENDRA DINESH MORE, 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 : DIRECTOR, RUPENDRA DINESH MORE.
FINANCIAL MEMORANDUM
The Bill proposes to amend sections 10 and 11 of the Act with a view to
extend the last date for payment of requisite amount and to permit withdrawal
of appeal only in respect of distinct and several issues. 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.