Constitutional challenge to Gujarat VAT definition clause stayed coercive recovery pending validity review.

A constitutional challenge to clause (g) of section 2(23) of the Gujarat VAT Act, 2003 questioned whether the State provision travelled beyond Article 366(29A). In view of a similar petition already admitted for another assessment year, the Court found the matter fit for rule and granted interim protection. Coercive recovery under the impugned assessment order was therefore restrained pending determination of the validity challenge.

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Issues: Whether coercive recovery pursuant to the impugned assessment order should be restrained pending the challenge to the constitutional validity of clause (g) of section 2(23) of the Gujarat Value Added Tax Act, 2003.

Analysis: The challenge was based on the contention that the impugned provision, as split from the constitutional definition under Article 366(29A), was alleged to travel beyond the power conferred on the State. The Court also noted that a similar petition concerning another assessment year had already been admitted. In that backdrop, the matter was considered fit for issuance of rule and grant of interim protection.

Conclusion: Interim relief was granted by restraining the respondents from making coercive recovery pursuant to the impugned assessment order.

Final Conclusion: The challenge was kept pending while protection against coercive recovery was ordered in the assessee's favour.

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