TATA MOTORS LTD. vs THE STATE OF MAHARASHTRA

Judgment text excerpt

Digitally signed by KAWRE KAWRE KIRAN 901-STR-81-2010.DOC KIRAN KALYAN KALYAN Date: 2026.03.06 21:23:38 +0530 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION SALES TAX REFERENCE NO. 81 OF 2010 M/s. Tata Motors Ltd. … Applicant Versus The State of Maharashtra … Respondent AND SALES TAX REFERENCE NO. 105 OF 2011 M/s. Tata Motors Ltd. … Applicant Versus The State of Maharashtra … Respondent _______ Mr. Tanishq Dube a/w R. P. Shinde i/b Khare Legal Chambers for Applicant. Ms. Jyoti Chavan Addl. GP a/w Mr. Himanshu Takke for Respondent-State. Mr. Atul Jasani, Amicus Curie. _______ CORAM: G. S. KULKARNI & AARTI SATHE, JJ. DATE: 26 FEBRUARY 2026 Oral Order (Per :- G. S. Kulkarni, J.) 1. By an order dated 12 November 2009 passed by the Maharashtra Sales Tax Tribunal, at Mumbai in Reference Application No. 180-181 of 2009, the following questions of law are referred to this Court to be answered in the present reference under Section 61(1) of the Bombay Sales Tax Act, 1959 ("Bombay Act"). 1) Whether vehicles affixed with trade mark which are sold, thereafter repurchased and resold to others on hire purchase without fixing any further trade mark, are not eligible to claim resale under clause (26) of Section 2 read with Section 8(ii) and the premium realized on hire- purchase would form part of taxable turnover under the Bombay Sales Tax Act, 1959 even though the same amount of hire purchase premium is subject to the levy of service tax under Chapter V and VA of the Finance Act, 1994? 2) Whether on the facts and circumstances of the case and evidence on record the Tribunal was justified in holding that hire premium charges recovered by the hirer of the vehicles forms part of sale price as defined Page 1 of 7 Sonali Mane 901-STR-81-2010.DOC under secti