K. DEVAMANI Vs. UNION OF INDIA AND ORS.

JUDGEMENT

(1.) The petitioner is a resident of Karaikal, Puducherry and seeks a Writ of Certiorari calling for and quashing G.O.Ms.No.24 dtd. 27/5/2020 issued by the Secretary to Government (Finance), Government of Puducherry/R2 invoking Sec. 31 of the Puducherry Value Added Tax Act, 2007 (in short 'PVAT Act') increasing the rate of tax payable in respect of Petrol and Diesel and fixing the same at 28% and 21.8% respectively.

(2.) Pleadings are complete in this matter and both Mr.Sridhar, learned counsel for the petitioner and Mr.J.Kumaran, learned Additional Government Pleader for the respondents have been heard in detail.

(3.) Petrol and Diesel were covered initially under Entry No.2/PartA/5th Schedule under the head 'List of goods taxable at the rate of 20% at the point of first sale'. With effect from 1/4/2017, these commodities were brought under Entries 2 and 3 of the 6th schedule under the head 'List of goods taxable at the rate of 35% at the point of first sale'. In line with the provisions of Sec. 75(1) of the PVAT Act that grants power to the Government to alter the rate of tax by amendment to the schedules, Notification dtd. 31/3/2017 was issued under G.O.Ms.No.20/A1/CD/2017 dtd. 31/3/2017 and the schedule rate of tax for Petrol and Diesel was raised to 35% at the point of first sale from 1/4/2017. A Bill was introduced and passed in the Legislative Assembly to give effect to the amendments made to the Schedule.