https://www.taxtmi.com/caselaws?id=345715 A taxing classification will withstand Article 14 scrutiny if it is based on a reasonable and substantial distinction with a rational nexus to the levy's object. The Madras HC noted that the Puducherry VAT amendment applied only to live chicken sold in Mahe, a region bordering Kerala where the item was taxed at a higher rate, and accepted the stated objectives of curbing smuggling and reducing tax disparity. It also noted that similar regional exemptions continued elsewhere in Puducherry, and that the challenger had to establish arbitrariness or improper discrimination. The levy was therefore upheld as a valid classification, and the challenge to the notification and amendment failed. en-us Tue, 04 Jul 2017 00:00:00 +0530 Wed, 14 Feb 2018 10:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=345715 A taxing classification will withstand Article 14 scrutiny if it is based on a reasonable and substantial distinction with a rational nexus to the levy's object. The Madras HC noted that the Puducherry VAT amendment applied only to live chicken sold in Mahe, a region bordering Kerala where the item was taxed at a higher rate, and accepted the stated objectives of curbing smuggling and reducing tax disparity. It also noted that similar regional exemptions continued elsewhere in Puducherry, and that the challenger had to establish arbitrariness or improper discrimination. The levy was therefore upheld as a valid classification, and the challenge to the notification and amendment failed. Case-Laws VAT and Sales Tax Tue, 04 Jul 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=345715