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CCI dismisses complaint against Maharashtra sales tax dept

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Press Trust of India New Delhi
Last Updated : Sep 30 2015 | 5:57 PM IST
The Competition Commission has rejected allegations of unfair business practices made against Maharashtra's Department of Sales Tax.
Taj Pharmaceuticals complained that the Department of Sales Tax/Professional Tax abused its dominant position with regard to issuance of tax notices. The Department had issued tax notices to Taj's 16 companies which are not operational and an FIR was registered.
In its order, the Competition Commission of India (CCI) said the Department's activity pertains to the sovereign function undertaken as stated in the Constitution of India.
"By performing the said activity, OP 1 (the Department) is merely carrying out the sovereign function of the government and as such is not engaged in any economic activity to be covered within the definition of an enterprise, given the facts of the present case," the regulator noted.
According to the order, dated September 29, CCI said it is of the view that the nature of the activities undertaken by the Department do not fall within ambit of Competition Act.
"...It is not germane to go into the grievances of the Informant arising out of lodging of FIR, subsequent filing of charge sheet and other related issues as these do not involve any question having a bearing on competition in the market and appropriate forum exists for the redressal of these issues.
"The Maharashtra State Tax on Professions, Trades, Callings and Employments Act, 1975 also provides appellate remedy if a person is aggrieved," the order said.
Finding no prima facie of competition norm violations, CCI decided to reject the complaint, which was also filed against Juhu police station in Mumbai.

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First Published: Sep 30 2015 | 5:57 PM IST

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