Hotel's sales tax challenge upheld due to retrospective amendment reversal. Petition disposed with no costs.Levy of sales tax - vires of Section 1(2)(b) of the Tamil Nadu Value Added Tax (5th Amendment) Act, 2013 - effect of the amendment bought by this section, retrospective or prospective - HELD THAT:- The demand is on account of the retrospective operation of the statutory provision pursuant to the 5th Amendment Act, 2013. In the light of the new notification of the Government dated 21.04.2015, the demand made on the petitioner is unsustainable. Petition allowed.... ... ... Issues:
Challenge to demand for payment of sales tax based on retrospective amendment to the Tamil Nadu Value Added Tax Act.

Analysis:
The petitioner, a hotel, challenged a demand for sales tax payment due to a retrospective amendment to the Tamil Nadu Value Added Tax Act from 01.04.2013. The South India Hotels and Restaurants Association also filed a writ petition against Section 1(2)(b) of the 5th Amendment Act, 2013, which was deemed arbitrary and illegal. The Revenue's counsel mentioned that retrospective demands were waived by a government notification from 21.04.2015, leading to the disposal of the association's petition. The respondent, TASMAC, clarified that the petitioner only challenged the demand and did not seek a writ of declaration. The demand was attributed to the retrospective effect of the statutory provision post the 5th Amendment Act, 2013. However, with the new government notification dated 21.04.2015, the demand on the petitioner was deemed unsustainable. Consequently, the writ petition was allowed, with no costs incurred, and the connected miscellaneous petition was closed. Levy of sales tax - vires of Section 1(2)(b) of the Tamil Nadu Value Added Tax (5th Amendment) Act, 2013 - effect of the amendment bought by this section, retrospective or prospective - HELD THAT:- The demand is on account of the retrospective operation of the statutory provision pursuant to the 5th Amendment Act, 2013. In the light of the new notification of the Government dated 21.04.2015, the demand made on the petitioner is unsustainable. Petition allowed. The Managing Director, Hotel Saratha Rajans Madurai (P) Ltd. Versus The Deputy Collector/District Manager, TASMAC Ltd.
VAT and Sales Tax
2017 (4) TMI 1554 - MADRAS HIGH COURT - TMI
MADRAS HIGH COURT - HC
Dated:- 5-4-2017
WP. (MD) No.4261 of 2014 and M.P. (MD) No.1 of 2014 - -
CST, VAT & Sales Tax
Honourable Mr. Justice T.S. Sivagnanam And The Honourable Mr. Justice P. Velmurugan, JJ. For the Petitioner : Mr. S. Madhavan. For the Respondent : Mr. M. Muniasam. ORDER The petitioner in the writ petition is a Hotel and they have challenged a demand issued by the respondent for payment of sales tax based upon an amendment, which was made to the Tamil Nadu Value Added Tax Act with retrospective effect from 01.04.2013. 2. In the Principal Bench, the South India Hotels and Restaurants Association had filed writ petition in W.P. No. 995 of 2014, seeking for a declaration to declare Section 1(2)(b) of the Tamil Nadu Value Added Tax (5th Amendment) Act, 2013, insofar as it relates to the members of the said Association is concerned as arbitrary, unjust, illegal, unconstitutional and unenforceable in law. When the case came up before the Division Bench, the counsel for the Revenue submitted that the retrospective demands stands waived in view of the Notification issued by the Government dated 21.04.2015. Recording the same, the said writ petition was disposed of. 3.The learned counsel for the respondent TASMAC represented that the petitioner has challenged only the demand and has not sought for any writ of declaration in this petition. 4. However, the demand is on account of the retrospective operation of the statutory provision pursuant to the 5th Amendment Act, 2013. In the light of the new notification of the Government dated 21.04.2015, the demand made on the petitioner is unsustainable. 5. Accordingly, this writ petition is allowed. No costs. Consequently, connected miscellaneous petition is closed.
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