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2008 (1) TMI 834 - HC - VAT and Sales TaxVires of section 11 of the Jharkhand Value Added Tax Act, 2005 challenged as ultra vires and violative of article 301 read with article 304(a) of the Constitution of India Held that:- The purposes for which the trade development fund has been created, do not directly facilitate trade and commerce and do not specially benefit the trade people in the local areas from which such entry tax is collected. Curiously enough, the trade development fund has been created by notification dated March 29, 2008 giving retrospective effect from April 1, 2006. Nothing has been brought on record by the respondent-State to show that the entry tax collected from April 1, 2006 till the date of notification has been utilised. In our considered opinion, therefore, levy of entry tax is discriminatory being violative of article 304(a) of the Constitution of India. Section 11 of the Jharkhand Value Added Tax Act, 2005 and the amendment made therein by Jharkhand VAT (Amendment) Act, 2007 are ultra vires and unconstitutional as being opposed to article 301 of the Constitution and are not saved by article 304 of the Constitution of India. W.P. allowed.
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