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2012 (8) TMI 887 - HC - VAT and Sales TaxRestriction upon registered dealers to trade with unregistered dealers by other State - Held that:- The incidence of tax has been given under section 8 of the Act of 2005 and the State Government's power to legislate on subject of levy of tax in Chapter III of the Act of 2005 is also not under challenge. What is under challenge is, the withdrawal of credit given on the basis of input tax. Therefore, from the facts itself it is clear that the State has not imposed the tax but has granted some concessions in the matters of the tax levied under the Act of 2005. The State has decided to encourage the trade with the registered dealers under the CST Act by giving some credit known as input-tax credit and has not levied any tax or penalty upon the petitioners on their entry to trade with the unregistered dealers. Therefore, from the impugned substitution of sub-clause (ii) of sub-section (4) of section 18, neither the State Government has levied some additional tax on the subject-matters covered under the article 246(1) nor has put any restrictions against the trade by the petitioners with unregistered dealers. Therefore, the petitioners' challenge to substituted provisions of sub-clause (ii) of sub-section (4) of section 18 of the Jharkhand Value Added Tax Act, 2005, by the impugned Ordinance Act is misconceived. W.P. dismissed.
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