Smt Sanchita Saxena And 16 Ors Vs State of Assam And 6 Ors (Guahati High Court)
The Gauhati High Court considered an interlocutory application seeking a stay on the operation of a circular dated 14 November 2025 issued by the Finance (Taxation) Department, Government of Assam. The applicants were Indian Made Foreign Liquor (IMFL) On-Shop owners who challenged the requirement imposed by the circular directing payment of Value Added Tax (VAT), with a further stipulation that failure to pay would result in non-renewal of their shop licences.
The applicants argued that the VAT demand imposed through the circular was unreasonable and arbitrary. They sought interim protection to prevent enforcement of the circular pending adjudication of the writ petition.
On behalf of the State, the Excise Department submitted that the obligation to pay VAT was not created by the impugned circular but arose from a statutory amendment to the Assam Value Added Tax Act, 2003, introduced in 2015 with effect from 17 June 2015. It was contended that despite the statutory mandate, the applicants had failed to register under the VAT regime and did not make the required payments. The Finance Department opposed the grant of any interim relief, emphasizing that the requirement was statutory and involved state revenue.
