Date:24/03/2005 URL: http://www.thehindubusinessline.com/2005/03/24/stories/2005032401311700.htm

Back Plea against VAT launch in Bengal

Our Legal Correspondent

Kolkata , March 23

DR Ashok Mitra, former Finance Minister of West Bengal and former Economic Advisor to the Union Government, on Tuesday, filed a public interest litigation in the Calcutta High Court challenging the introduction of value added tax in West Bengal from April 1.

The matter will appear before the Division Bench led by the Chief Justice Mr V.S. Shirpurkar on March 30.

The petition pleaded that VAT may be declared "unconstitutional and ultra vires." It was stated that VAT was not within the legislative competency of the State Government and that, without suitably amending the Constitution, the State or Central Governments do have any legal authority to withdraw sales tax and substitute it with VAT.

"State has no right to impose VAT in substitution of Sales Tax."

It was further stated that VAT is not a sales tax and that the State has no power to impose such a formula.

Describing the move to introduce VAT as trying to bypass the Constitution and an abuse of process, the petitioner urged that VAT be quashed.