While considering a writ petition on ground of alternative remedy, a division bench of the Bombay High Court has dismissed the same involving the levy of VAT by the Maharashtra State on the goods involved in the execution of work contract, executed on the ONGC platform.
The petitioner, HAL Offshore Ltd approached the Court contending that the State of Maharashtra had no jurisdiction to levy tax on the goods involved in the execution of work contract, executed on the ONGC platform.
According to the petitioner, the petitioner had provided the services of the production of water at ONGC platform. On that platform, the sea water i.e. salt water was converted into potable water. The machinery performing the said process belongs to ONGC. The petitioner had only provided the labour and the chartered ship on the higher basis. The petitioner had its own chartered ship and the possession and control of the ship always remained with the petitioner.
A bench of Justice R. D. Dhanuka and Justice S.M.Modak has held that “if this Court entertains this petition impugning the assessment order without directing the petitioner to avail alternative remedy available under section 26 of the MVAT Act and if the petition is rejected on its own merits, the petitioner in that event would not be able to subsequently avail of alternative remedy by way of an appeal under section 26 of the MVAT Act which would be prejudicial to the interest of the petitioner. On this ground also we are not inclined to entertain this writ petition impugning the assessment order directly in this writ petition.”
Granting an interim relief to the petitioners, the Court held that “the writ petition is dismissed as not maintainable on the ground of alternative efficacious remedy under section 26 of the Maharashtra Value Added Tax Act, 2002 not availed by the petitioner. The prayer clauses (b) and (c) of the petition challenging the validity of section 26 of the Maharashtra Value Added Tax Act, 2002 are being decided in the case of United Projects vs. The State of Maharashtra & Anr. in Writ Petition No.2883 of 2018 and are thus not required to be decided in this petition.”
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