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2016 (12) TMI 1428 - HC - VAT and Sales TaxLegality of the imposition of tax of entry on goods as inserted by way of an amendment in the Uttar Pradesh Tax on Entry of Goods into Local Areas Act, 2007 and Uttar Pradesh Tax on Entry of Goods into Local Areas (Amendment) Act, 2016 (UP Act No.18 of 2016) notified on 16th September, 2016 Held that: - amendment inserted by way of U.P. Act No.18 of 2016 is completely beyond the authority and competence of the State Legislature as it ex facie introduces the levy of tax which was not existing under the old Act and therefore, could not be introduced by way of the amendment as has been done now. Consequently, Clause 19 of Constitution (One Hundred and First Amendment) Act, 2016 does not in any way prima facie saves the imposition of the tax through Online Purchase or E-Commerce particularly for personal use. Thus there is a complete lack of legislative competence as such the impugned provisions are rendered unconstitutional. Interim relief granted during the pendency of writ petition - as an interim measure, the petitioner shall be entitled to trade through E-Commerce and on Online Purchase system but for the said purpose, the petitioner in order to secure the interest of the State shall furnish Bank Guarantee to the satisfaction of the authorities concerned by mentioning in the form prescribed for the said purpose in respect of such transactions - matter on remand.
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