LG Electronics India Pvt. Ltd. Vs State of Tamil Nadu (Madras High Court)
Facts- In these batches of writ petitions, some of which are filed praying to issue a Writ of Declaration, declaring the amendment introduced by Act 21 of 2007 retrospectively with effect from 01.01.2007 to Section 6 of the Tamil Nadu Value Added Tax Act, 2006 (Act 32 of 2006) as unconstitutional, ultravires Articles 14, 19 (1) (g), 20, 301 and 304 (a) of the Constitution of India.
Some writ petitions are filed seeking to issue a Writ of Declaration declaring Section 3 of the Tamil Nadu Value Added Tax (Amendment) Act, 2007 (Act 21 of 2007) as ultravires the Constitution of India and violative of Articles 14, 301, 303 and 304 of Part XIII of the Constitution of India.
Some writ petitions are filed challenging the orders passed by the assessing officers under Section 27 of the Tamil Nadu Value Added Tax Act, 2006 disallowing the returns filed under Section 6 of the TNVAT Act, 2006.
Some writ petitions are filed challenging the notices issued by the respective respondents proposing to disallow the returns filed under Section 6 of the TNVAT Act, 2006.
Conclusion- As regards the provision offending Article 14, 19(1) (g), 301, 303 and 304 of the Constitution, we have already held that the impugned amendment is based on intelligible differentia, does not affect the right of the dealers to carry on any trade of business or impedes the free movement of goods. The compounding Scheme under Section 6 is only an option to be exercised voluntarily. There is no compulsion to opt under Section 6 of the Tamil Nadu Value Added Tax Act, 2006 and it is open to a works contractor to pay taxes under section 5. The condition contained in section 6 cannot be regarded as giving any preference to one State over another or as discriminatory by levying more tax on the goods brought in from outside the State as because the State by such amendment has not imposed any tax. Therefore, the Amendment does not infringe any of the guarantees or safeguards provided under the Constitution. Accordingly, all the writ petitions challenging the vires of Section 6 of TNVAT Act, 2006, fail and are hence, dismissed.
FULL TEXT OF THE JUDGMENT/ORDER OF MADRAS HIGH COURT
