THILLAI AGENCIES Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) The present Writ Petition has been filed by a registered dealer under Tamil Nadu Value Added Tax Act, 2006 challenging Sec. 19(15) of Tamil Nadu Value Added Tax Act, 2006 as unconstitutional and unenforceable.

(2.) The facts leading to the filing of the Writ Petition are as follows:

(3.) According to the learned Counsel for the Writ Petitioner, it is impossible to verify about the validity/subsistence of the registration of the selling dealer. He had further contended that the Petitioner is a bona fide purchaser. In case, if the input tax credit is reversed, the tax paid towards the purchase effected by him will result in forfeiting under Sec. 40 of the Act. As a consequence of the impugned provision, for a single transaction, a tax would be levied at two points which is quite contrary to the object of Tamil Nadu Value Added Tax Act, 2006. He had further contended that the said provision is in violation of Articles 14 & 301 of the Constitution of India.