Bombay High Court Sets Aside MVAT Refund Denial Made Without Notice: Priyanka Communications India Pvt. Ltd.
Overview
In Priyanka Communications India Pvt. Ltd. Vs State of Maharashtra & Ors. (Bombay High Court), decided on 21/07/2026 in Writ Petition (L) No. 15175 of 2025, the Court set aside an appellate order that had refused an MVAT refund by holding it back against tax that might arise in later years. The matter was sent back for a fresh decision after a proper hearing of the petitioner.
Background of the Dispute
The petitioner challenged an order dated 27 June 2024 passed by the First Appellate Authority, the Joint Commissioner of Sales Tax, Mumbai, City Division, Mumbai.
Its main grievance was this:
- The petitioner was entitled to a refund for the assessment year 2014-2015.
- The refund was nevertheless declined because the amount, in the authorities' view, could be adjusted against a claim that might arise against the petitioner in the financial years 2016-2017 and 2017-2018.