Bombay High Court
The Additional Commissioner Of State ... vs M/S Finolex Industries Limited on 4 December, 2025
Author: M.S. Sonak
Bench: M.S. Sonak
5-MVXA-18-25.DOCX
Sayali
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
SAYALI MAHARASHTRA VALUE ADDED TAX APPEAL NO. 18 OF 2025
DEEPAK
UPASANI The Additional Commissioner of ...Appellant
Digitally signed by State Tax VAT-I, M. S. Mumbai
SAYALI DEEPAK
UPASANI
Date: 2025.12.04
Versus
19:18:28 +0530
M/s. Finolex Industries Ltd ...Respondent
______________________________________________________
Mr Himanshu Takke, AGP for State of Maharashtra, for
Appellant.
______________________________________________________
CORAM: M.S. Sonak &
Advait M. Sethna, JJ.
DATED: 04 DECEMBER 2025
PC:-
1. Heard Mr. Takke, the learned Counsel for the Appellant.
2. On 18 September 2025, we had made the following order:-
1. Stand over to 25 September 2025, in order to enable Ms. Chavan to consider the impact of the decision in the case of K. P. Power Pvt. Ltd and Anr. V/s. State of Maharashtra and Ors1. and The Additional Commissioner of Sales Tax V/s. Garware Polyster Ltd2.1
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3. Today, Mr. Takke, the learned Counsel for the Appellant submits that the issue raised in this Appeal will not be covered by the two decisions referred to in our order of 18 September 2025. He states that the issue involved in both the cases concerned the interplay between the provisions of the CST Act and MVAT Act. He submits that in Garware Polyester, the Co- ordinate Bench rejected the argument that the only pro-rata exemption should be granted because under the CST Act, there is no provision for reduction of exemption. He further submits that in the present case, there are statutory provisions in the form of amendments to Section 93 and 93A which speak about pro-rata exemption and not 100% exemption.
4. Considering the submissions made, we think that this Appeal requires consideration and accordingly, we admit this Appeal on the following substantial questions of law:-
"A. Whether Tribunal was correct and justified in context of provisions of law and on facts to hold that as per the judgment of this Honorable Court in MVAT Appeal No 61 of 2017 dt 29.10.2018 the Respondent is entitled to relief of claiming full exemption of tax as per eligibility certificate and entitlement certificate under Package Scheme of Incentives 1988 and 1993 despite amendment in section 93 and insertion of section 93A restricting benefit of incentives proportionate to the expansion capacity /investment to existing capacity / investment.Page 2 of 3 ::: Uploaded on - 04/12/2025 ::: Downloaded on - 04/12/2025 21:31:27 :::
5-MVXA-18-25.DOCX B. Whether judgment in the Respondents own case in MVAT Appeal No 61 of 2017 is holding correct proposition of law especially after amendment of Section 93 and insertion of section 93A to MVAT Act 2002 with effect from 1.4.2005 by ordinance dt 27.8.2009".
5. Mr. Takke, states that steps would be taken to immediately served the Respondents and affidavit of service will also be filed.
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