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2014 (9) TMI 245 - HC - VAT and Sales TaxValidity of two circulars issued on August 6, 2012 and September 26, 2012, by the Commissioner of Sales Tax - benefit of a composition scheme notified under section 42(3A) of the Maharashtra Value Added Tax Act, 2002 - Held that:- A notification was issued by the State Government on July 9, 2010 under section 42(3A) to provide for a scheme of composition for registered dealers who undertake the construction of flats, dwellings, buildings or premises and transfer them in pursuance of an agreement along with land or interest underlying the land. The composition amount is one per cent of the amount specified in the agreement or of the value specified for the purpose of stamp duty in respect to the agreement under the Bombay Stamp Act, 1958 which is higher. Among the conditions attaching to the composition scheme is a condition which stipulates that all agreements which are registered on or after April 1, 2010 shall be covered under the scheme. What the scheme of composition has done is to make it applicable to agreements which were registered after April 1, 2010. It would not be proper for this court to strike down the provision by which the option of composition has been given to agreements which were registered after April 1, 2010. Nor for that matter, would the court be justified in directing that the same option of composition should be allowed to agreements which were registered prior to April 1, 2010. By issuing such a direction the court in the exercise of its jurisdiction under article 226 would be legislating by directing the delegate of the Legislature to extend the ambit of the composition of scheme beyond what was provided in the scheme. That is impermissible. There is no merit in the challenges which have been addressed by the petitioners before this court. We hold in consequence that the circulars dated August 6, 2012 and September 26, 2012 are not ultra vires. We have also come to the conclusion that the composition scheme is not ultra vires in imposing a condition to the effect that it shall cover all agreements registered after April 1, 2010. During the course of the hearing we have been informed by counsel appearing on behalf of the petitioners that representations have been submitted to the State Government for extending the benefit of the composition scheme to agreements which were registered between June 20, 2006 and March 31, 2010. We clarify by way of abundant caution that this judgment would not stand in the way of the State Government taking an appropriate decision on the representations that have been submitted in that regard. Decided against assessee.
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