Challenge to repealed VAT provisions declined as premature and academic under the GST transition framework

A challenge to the validity of provisions of the Tamil Nadu Value Added Tax Act, 2006 was not entertained because it was based only on an apprehended future action, while the Act itself had already been repealed after the introduction of the GST regime under Article 246A. The Court held that, in light of the repeal and the saving mechanism under Section 174 of the Central Goods and Services Tax Act, 2017, any present ruling on the vires of the impugned provisions would be purely academic. The writ petition was dismissed, while leaving the petitioner free to pursue remedies if any action is initiated in future.

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Issues: Whether a challenge to the validity of Section 2(15)(ix) and Explanation 1 of Section 2(33)(vi) of the Tamil Nadu Value Added Tax Act, 2006 could be entertained when the petitioner's complaint was only based on an apprehended future action, and the statute had already been repealed.

Analysis: The challenge was founded only on apprehension that proceedings might be initiated under the Tamil Nadu Value Added Tax Act, 2006. The Court noted that with the advent of the constitutional scheme under Article 246A of the Constitution of India and the enactment of the Central Goods and Services Tax Act, 2017, the Tamil Nadu Value Added Tax Act, 2006 stood repealed. In view of the repeal and the saving mechanism under Section 174 of the Central Goods and Services Tax Act, 2017, the Court held that a present adjudication on the vires of the impugned provisions would be purely academic at that stage. It was also observed that if any action were initiated in future, the petitioner would be free to pursue remedies available in law.

Conclusion: The challenge was not entertained and the writ petition was dismissed.

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