Metal traders from Mumbai, who today met the Maharashtra Finance Minister seeking exemption from paying penalty on unpaid sales tax, appeared hopeful of arriving at an amicable solution, but Government officials said no commitment has been made on providing any relief.
Finance Minister Sudhir Mungantiwar held a meeting with representatives of metal traders along with sales tax and his department officials at his office in Mantralaya.
The traders put forth their difficulties before the Minister and sought relief from paying penalty on pending sales tax.
According to an official from the Finance Department, Sales Tax Commissioner Rajiv Jalota and Sudhir Kumar Shrivastav, Additional Chief Secretary (Finance), opposed any relief from paying the penalty.
Jitendra Shah, Secretary of the Metal and Stainless Steel Merchants Association, said the meeting was "very positive" and hoped the issue will be resolved in the next few days.
"I think the government will come out with a solution. We do not want to shift to any other state but the sales tax department has wrongly charged VAT on steel traders," Shah said.
"We having done nothing wrong and we are not thieves. Why should we then pay VAT? In fact, we have paid taxes on time," he added.
Meanwhile, Mungantiwar has instructed officials to undertake a study of Chhattisgarh and Madhya Pradesh pattern of tax relaxation to steel traders.
"Chhattisgarh and Madhya Pradesh have applied a particular pattern of tax on steel traders. I have instructed the Finance Secretary to study that pattern within ten days," Mungantiwar said.
The next meeting will be held after ten days in which a solution on steel traders' demand is expected.
However, another official from the Finance Department said there was no move to provide any relaxation to traders.
"The traders are suppose to pay Rs 1,000 crore of sales tax to the government (the penalty amount not yet calculated). The State cannot waive off such a huge amount, but we may offer an amnesty scheme where traders can pay tax in parts," the official said.
