Bombay HC refuses relief to Anushka Sharma and disposes of pleas against sales tax demand

Bombay High Court refused relief to actor Anushka Sharma and disposed of her petitions challenging orders passed by the state Sales Tax department demanding tax for assessment years between 2012 to 2016 under the Maharashtra Value Added Tax Act.

A division bench of Justices Nitin Jamdar and Abhay Ahuja said the actor had the alternate remedy of filing appeal against the orders under provisions of Maharashtra Value Added Tax (MVAT) Act.

Sharma had filed four petitions challenging four orders passed by the Sales Tax department levying tax for assessment years 2012-13, 2013-14, 2014-15 and 2015-16 under the Act.

Why should we entertain the petitions when the petitioner (Sharma) has a full fledged remedy of appeal available under the Act? Statutory provision is available, the bench said.

The department had sought for the petitions to be dismissed and cost be imposed on Sharma as she had an alternate remedy available under the MVAT Act. According to Sharma's petitions, during the concerned period she performed in films and at award ceremonies as part of a tri-party agreement with her agent Yashraj Films Pvt Ltd and producers/event organisers. 

The assessing officer levied sales tax not on film consideration but on product endorsements and anchoring at award functions, holding that Sharma had transferred her performer's rights, her petitions said. For Assessment Year 2012-13, the sales tax demand, inclusive of interest, was Rs 1.2 crore on Rs 12.3 crore consideration and for 2013-14, it was Rs 1.6 crore on a consideration of Rs 17 crore.