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2011 (5) TMI 869 - HC - VAT and Sales TaxWhether section 17 of the Assam Value Added Tax Act, 2003 or the notification dated April 5, 2007 are unconstitutional? Held that:- In so far as we are concerned with the challenge to section 17 of the Act, there is legislative guidance in the preamble to the Act. The discretion of the State Government is also limited inasmuch as it has been clearly laid down in the proviso to section 17 of the Act that the Government shall not vary the rate of tax so as to enhance it, in any case, exceeding forty paise in a rupee. The upper limit of taxation, has therefore, been fixed. As far as the notification dated April 5, 2007 is concerned, on its deletion from the First Schedule to the Act, "tobacco" came within the purview of entry 1 in the Fifth Schedule to the Act and the tax leviable on tobacco came to be 12.5 paise in a rupee or 12.5 per cent, which is well below 40 paise in a rupee or 40 per cent. Under these circumstances, we are of the opinion that neither section 17 of the Act of 2003 nor the notification dated April 5, 2007 are unconstitutional or can be challenged on the ground of having been issued arbitrarily. Appeal dismissed.
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