STOCK MARKET BSE NSE

Shopkeepers' plea against Value Added Tax dismissed

Published: 20th July 2013 09:18 AM  |   Last Updated: 20th July 2013 09:18 AM   |  A+A-

The Madras High Court has dismissed a batch of writ petitions challenging certain provisions of the Tamil Nadu Value Added Tax (VAT) Act relating to Input Tax Credit.

The Legislature consciously enacted Sections 19(20) and 19(11) of TN VAT Act with some avowed objects. These provisions were for safeguarding the interest of the revenue and to prevent the cascading effect of tax burden on the ultimate consumers. “Therefore, we are of the view that these sections are mandatory and its contravention will result in forfeiture of the concession of availment or Input Tax Credit,” the second bench consisting of Justice R Banumathi and Justice TS Sivagnanam said on Friday.

The bench was dismissing a batch of writ petitions from Jayam Stores of Chennai and over 50 other dealers seeking to quash the sections as being arbitrary and irrational infringing the rights of the petitioners under Article 14 and 19(1)(g) of the Constitution. The petitioners also sought to quash the subsequent penal action in the form of assessment orders/show cause notices.

Since the writ petitions challenging the constitutionality of the sections having failed, their plea to quash the penal action would have no legs to stand and therefore, they should necessarily fail, the bench said. The VAT structure had the ultimate goal of augmenting the revenue by making the procedure simple. The Legislature in its wisdom mandated the Act, the bench added.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp