SITHURAJAPURAM Vs. PRINCIPAL SECRETARY TO GOVERNMENT

JUDGEMENT

(1.) The entire batch of writ petitions questions the legality and validity of a liability sought to be imposed by the State Government under G.O.Ms.No.139, Commercial Taxes and Registration (B1), dated 08.11.2013, which has been filed on record, whereby the Tamil Nadu Value Added Tax Act, 2006 [for brevity 'the 2006 Act'], insofar as it relates to the sale of alcoholic liquors as provided for in the Second Schedule to the Principal Act, notifies the percentage of tax applicable which stands imposed @ 14.5% at the third point of sale in the State. The pointed and focused issue which has been raised in these batch of writ petitions and calls for determination is as to whether by virtue of such imposition, the petitioners can be saddled with the liability of tax for the period from 01.04.2013 to 07.11.2013 with retrospective effect.

(2.) The contention of the petitioners is that in the absence of any provision for levy of such tax on alcoholic drinks in existence for the said period, the same could not have been notified by way of a deferred payment so as to realise the tax on the sales between the said period with retrospective effect.

(3.) The submission is that goods already sold to customers without there being any tax leviable between the said period could not be a matter of deferred tax realisation. In the case of indirect tax, the liability has to pass on to the customers, to be realised by the petitioners. The respondent State could not have brought out a legislation into effect without there being a specific indication of retrospective application authorising the levy of such stated and alleged deferred payment.