Mumbai, Mar 23 (KNN) In a significant ruling, the Bombay High Court has upheld the State of Maharashtra's authority to impose stamp duty on delivery orders for imported goods arriving via sea routes.

A division bench comprising Justices Gautam Patel and Neela Gokhale dismissed a batch of over 130 petitions challenging the state's legislative competence in this matter.

The petitioners, spanning diverse industrial sectors like automotive, cement, appliances, and textiles, had raised questions regarding the interpretation of specific provisions under the Maharashtra Stamp Act. 

They predominantly contested the imposition of stamp duty on Bills of Entry for customs clearance and subsequently challenged the duty levied on delivery orders facilitating the release of imported goods.

However, the bench rejected the constitutional challenge, affirming that the delivery order is not part of the import process itself. Consequently, the state falls well within its legislative purview to levy such duty, which currently stands at Rs 1 lakh for every Rs 10 crore worth of imported goods.

The judgment carries profound implications for the state's revenue generation and safeguarding its financial interests. Among the petitioners were prominent companies like Jaguar Land Rover India Ltd, Tata Motors, CEAT Ltd, UPL Ltd, Haier Appliances, Ultratech Cement Ltd, Nilkamal Ltd, Viraj Profiles, Fiat India, Allana Consumers Products Pvt Ltd, and Saurer Textile Solutions Pvt Ltd.

Representing the state, Advocate General Birendra Saraf argued that while the Constitution restricts the imposition of sales and purchase taxes on imports, it does not preclude the levying of stamp duty by the state government.

(KNN Bureau)