TMI Blog2011 (9) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... Maharashtra Purchase Tax on Sugarcane Act, 1962. The State Legislature was within its plenary power to do so. As a matter of fact, the repealing provisions of Section 95(1)(c) were never brought into force. Simultaneously with the enforcement of the MVAT Act, 2002 on 01 April 2005, the repealing provisions were reconstructed so as to exclude a reference to the repeal of the Purchase Tax Act. Hence, there is no merit in the first submission. Discrimination in Remission of Tax in respect of certain industries - right of assessee to claim remission from tax - legislative powers - held that:- The levy of tax is a sovereign function. The power to remit the payment of tax is an incidence of the sovereign power of the State. No assessee has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,05,112/- being the liability of the Petitioner in respect of purchase tax under the Maharashtra Purchase Tax on Sugarcane Act, 1962 for the period 2008-09, 2009-10 and 2010-11. The petitioner called into question an order passed by the State Government in the Finance Department, rejecting the application made by the Petitioner for exemption under Section 12B of the Maharashtra Purchase Tax on Sugarcane Act, 1962. 2. The petitioner is a Company incorporated under the Companies Act 1956. On 29 July 2010, the Petitioner submitted an application to the State Government, seeking an exemption from the payment of purchase tax under Section 12B of the Maharashtra Purchase Tax on Sugar Cane Act, 1962. By an order dated 10 December 2010, passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the State of Maharashtra with effect from 01 April 2005, having been notified after receiving the assent of the Governor, in the Maharashtra Government Gazette on 31 March 2005. Though in the Act as originally enacted, Section 95(1)(c) provided for the repeal of the Maharashtra Purchase Tax on Sugarcane Act 1962 that provision did not take effect for the simple reason that the parent Act itself was not brought into force until 1 April, 2005. Simultaneously, it was provided in Section 55 of the Amending Act that in Section 95 of the principal Act, clause (c) of subsection (1) shall stand deleted. As a consequence, the provision by which the Maharashtra Purchase Tax Act on Sugarcane Act 1962 was to stand repealed was deleted with effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... never brought into force. Simultaneously with the enforcement of the MVAT Act, 2002 on 01 April 2005, the repealing provisions were reconstructed so as to exclude a reference to the repeal of the Purchase Tax Act. Hence, there is no merit in the first submission. 6. In so far as the claim for remission is concerned, Section 12B of the Maharashtra Purchase Tax on Sugarcane Act, 1962 provides as follows: 12B. Remission of Tax - For the purpose of encouraging the {establishment of new factories or units, or for the purpose of overcoming any difficulties in respect of any factories or units in the initial periods of manufacture or production of sugar,} the State Government may, by notification in the Official Gazette, remit the whol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was only stated that the Unit is a new unit and facing financial difficulties. No details whatsoever were furnished to the State Government. The State Government was in those circumstances justified in rejecting the request for remission. The exercise of the power by State Government cannot hence be faulted. 8. Section 6(1) of the Maharashtra Purchase Tax on Sugarcane Act, 1962 provides that every occupier liable to pay tax under the Act shall, within thirty days after the end of every month to which the return relates, submits a monthly return in the prescribed form to the Commissioner. Sub-section (2) provides that every return shall be accompanied by a receipt for payment of the full amount of tax leviable under section 3 for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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