Deciding two connected writ petitions arising from a common Industrial Tribunal Award, the Delhi High Court set aside the Tribunal's direction granting hotel workmen a further…
Labour Laws
06/09/20264 min read
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Slump Sale under BTA would not amount to Sale of Goods under MVAT Act: Bombay HC rules in favour of Piramal Enterprises Ltd
GST
The Bombay High Court ruled that a slump sale under a Business Transfer Agreement (BTA) does not amount to the sale of goods under the Maharashtra Value Added Tax (MVAT) Act, 2002, favoring Piramal Enterprises Ltd.
The petitioner challenged a review order taxing their 2010-11 business transfer to Abbott Healthcare Pvt. Ltd. as a "going concern" under MVAT. The court noted that the transaction was initially deemed non-taxable by the assessing officer in 2015. However, a 2017 review notice reclassified the sale based on itemized consideration for stamp duty purposes.
The court found that the reviewing authority exceeded its jurisdiction, emphasizing that such a transaction isn't taxable under MVAT, and set aside the impugned order and demand notice.
