2025-VIL-1350-BOM
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VAT High Court Cases

Goa Value Added Tax Act, 2005 - Taxability of Extra Neutral Alcohol (ENA)/Rectified Spirit (RS)/High Bouquet Spirit (HBS) - Levy of interest under Section 25(4) of the Goa VAT Act for delayed payment of VAT on the sales of ENA/RS/HBS effected during FY 2019-20 - Whether the levy of interest is valid given the ambiguity and lack of clarity on the taxability of ENA/HBS/RS under the GST or VAT law - HELD - Though there was some ambiguity regarding the taxability of ENA/RS/HBS under the GST regime after its introduction from 1st July 2017, the petitioner was aware that these goods would continue to be taxable under the Goa VAT Act. The petitioner had collected VAT on sale of these goods but did not deposit the same within the prescribed time, which attracted the interest liability under Section 25(4). Once the petitioner filed the returns, even showing 'zero' liability, the tax became 'due and payable' as per the statutory scheme under Section 25 and the GVAT Rules. The petitioner cannot justify the delay on the ground of uncertainty – Further, the petitioner had already paid VAT for the first quarter and cannot claim benefit of uncertainty selectively. The petitioner was conscious of the goods being taxable under the GVAT Act and it had earlier approached the Court challenging the condition of furnishing an undertaking for payment of any future GST liability on ENA/RS/HBS, thereby acknowledging the applicability of the Goa VAT Act. There is no merit in the petitioner's contention that the delay in payment was on account of the uncertainty and the interest was rightly levied for the delayed payment of tax - The levy of interest under Section 25(4) of the GVAT Act on the petitioner is valid - The writ petition is dismissed
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