ITC rule: Bombay High Court seeks response from state's revenue dept
The Bombay High Court has recently granted an interim stay on a court order asking Enzene Biosciences Ltd to reverse proportionate Input Tax Credit (ITC) on interest earned on fixed deposits(FDs), and directed the pharmaceutical company to pay 10 per cent of the total tax amount.
The court has also sought a response from the Maharashtra State and Revenue Department in the case
“Pending the final disposal of this petition, the demand in the impugned order dated 16 April, 2024 is stayed subject to the Petitioner depositing in this court 10% of the tax amount of Rs 7,54,33,308/- (Seven Crores Fifty Four Lakhs Thirty Three Thousand Three Hundred Eight only) within a period of six weeks from today after giving due notice to the learned counsel for the respondents Nos. 1, 2 and 3. This means that the Petitioner will have to deposit an amount of Rs 75,43,330.8/- within a period of six weeks from today,” the court said.
Enzene Biosciences Limited and a few other companies have challenged the constitutional validity of Explanation to Rule 43(1)(b) of the Maharashtra Goods and Service Rules, 2017 through a writ petition before the Bombay high court.
