Tvl. Vasavi Jewellary Mart vs The State of Tamil Nadu

Vinod K. Sharma, J.—The Petitioner is carrying on the business of Jewellary, under the provision of the Tamil Nadu Luxury Tax Act 1981.

The Petitioner filed return for the turnover, as the goods were included to be taxable under the Act.

The Petitioner challenged the Constitutional validity of the Tamil Nadu Luxury Tax Act, 1981, as goods could not be a luxury for the imposition

of tax. The Hon''ble Supreme Court, in the case of Godfrey Phillips India Ltd. and Another Vs. State of U.P. and Others, , has been pleased to lay

down, that no luxury tax can be imposed on the goods.

This Court, in the case of Tvl. M.S.P. Sethuraman and Company, represented by its Partner v. The State of Tamil Nadu, rep. by Secretary to

Government, Department of Commercial Taxes & Religious Endowments, Fort St. George, Chennai-600 009 in W.P.(MD) No. 1789 of 2007

and connected cases, decided on 01.12.2009, was pleased to lay down as under:

A perusal of the order would go to show that the scope of the order of the Hon''ble Supreme Court striking down the Amendment Act has not

been fully understood. When once the Amendment Act is struck down by the Supreme Court, it should be property understood to mean that the

amendment was never, in force in the Statute Book. But, under the wrong impression, these impugned orders have been passed as though the

amendment was in force was for a particular period viz., between 1.7.2002 and 28.12.2004. For these reasons, I am of the considered opinion

that the impugned orders are liable to be set aside.

The case of the Petitioner is squarely covered by the judgment of this court referred to above.

Consequently, the writ petition is allowed. The assessment order, imposing luxury tax for the period in dispute is ordered to be quashed. No

costs.