Outstanding Demand Under Maharashtra Settlement Can't Be Adjusted Against Refund Payable Under Maharashtra VAT Act: High Court

The Bombay High Court quashed a review order passed by the state tax joint commissioner under the Maharashtra Settlement Act, 2022, citing jurisdictional error. The case involved the adjustment of a refund amount against outstanding demands under the Maharashtra Value Added Tax (MVAT) Act. The court found that the authorities under the Settlement Act had encroached upon powers conferred under the MVAT Act, as there was no provision for such adjustments in the Settlement Act. The court ruled that the review order was without jurisdiction and emphasized the importance of adhering to statutory provisions. This decision highlights the need for clear demarcation of powers between different tax authorities to prevent jurisdictional overreach.