STATE OF CHHATTISGARH Vs. SHOBHA ENTERPRISES

JUDGEMENT

(1.) This batch of writ appeals arise from a common order dated 12.03.2018 passed by the learned Single Judge allowing the writ applications and holding that the notification issued by the State Government in exercise of its powers under Section 15-B of the Chhattisgarh Value Added Tax Act, 2005 (for short 'the VAT Act') where tax on minor forest produce has been reduced to 5% will also be applicable to Tendu leaves by treating the Tendu leaves also as a minor forest produce despite the Tendu leaves having been separately shown as a taxable item in Part III of Schedule II.

(2.) The private Respondents, who were the Petitioners before the writ court, had entered into purchase agreements with the Chhattisgarh State Minor Forest Produce (Trading and Development) Cooperative Federation Limited (for short 'the Federation') authorising the Respondents to purchase Tendu leaves from them. As per the purchase agreement, the purchasers had to pay VAT under the VAT Act at the rate prescribed by the State Government from time to time.

(3.) The VAT Act lays down obligations on every dealer who is liable to pay tax under the said Act in respect of sales or supplies of goods effected by him in the State of Chhattisgarh. Section 4 of the VAT Act creates obligation under the law.