Retrospective VAT demand waived by later notification, leaving the tax demand unsustainable under the amended Tamil Nadu law.

A demand raised under the retrospective amendment to the Tamil Nadu VAT law could not be sustained because it arose solely from the amended provision, and a subsequent government notification dated 21.04.2015 waived retrospective demands. The court treated the notification as removing the basis for the demand and, on that footing, held the demand unsustainable. The writ petition was allowed.

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Issues: Whether the demand raised on the petitioner pursuant to the retrospective amendment to the Tamil Nadu Value Added Tax law was sustainable in light of the subsequent government notification waiving retrospective demands.

Analysis: The demand arose solely from the retrospective operation of the amending provision. In view of the government notification dated 21.04.2015, the retrospective demands were treated as waived, and the demand raised against the petitioner could not be sustained.

Conclusion: The demand was held unsustainable and the writ petition was allowed.

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