Smt Sanchita Saxena And 16 Ors vs. The State Of Assam And 6 Ors
Held
The Court held that the requirement to pay VAT is statutory in nature, introduced by an amendment to the VAT Act in 2015, and the provisions of the statute itself were not under challenge. Therefore, a blanket interim order was not warranted. The petitioners were directed to register themselves and pay the prescribed VAT. However, the aspect of payment from the date the statute came into operation until the notice dated 14.11.2025 was to be kept in abeyance and decided after the respective departments file their returns. It was clarified that upon registration and payment of current VAT, the renewal of licenses should not be refused on this ground.
Facts
The petitioners are IMFL On Shop owners in Assam. They are challenging a Circular dated 14.11.2025 issued by the Commissioner and Secretary to the Government of Assam, Finance (Taxation) Department. This circular directed the payment of VAT and stated that failure to do so would result in non-renewal of On Shop Licenses. The petitioners contend the demand is unreasonable and arbitrary. The respondents argue that the requirement to pay VAT is statutory, introduced by an amendment to the Assam Value Added Tax Act, 2003, effective from 17.06.2015. They state that despite this, the petitioners failed to register and make consequential payments.
Key Issues
1. Whether the Circular dated 14.11.2025, directing the payment of VAT by IMFL On Shop owners and threatening non-renewal of licenses for non-compliance, is arbitrary and unreasonable, thereby warranting an interim stay. The petitioners argued that the demand is unreasonable and arbitrary. The respondents contended that the requirement to pay VAT is a statutory mandate introduced by an amendment to the Assam Value Added Tax Act, 2003, effective from 17.06.2015, and that the petitioners have failed to comply with these statutory provisions. They further argued that as the revenue of the State is involved, no interim order should be passed.
Sections Cited
Assam Value Added Tax Act, 2003
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Page No.# 1/6 GAHC010268182025
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THE GAUHATI HIGH COURT (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH) Case No. : I.A.(Civil)/3995/2025 In WP(C)/5652/2025 SMT SANCHITA SAXENA AND 16 ORS W/O SRI BHUSHAN DAS, R/O T.R. PHUKAN ROAD, WARD NO. 2, BONGAIGAON, ASSAM, PIN 783380 2: JWANFSAR BASUNATARY S/O- LATE RANA BASUMATARY R/O- WARD NO-4 RWIMUOUR P.O- CHAPAGURI P.S- DHALIGAON DIST- CHIRANG ASSAM PIN-783385 3: HARI BHUSAN BASUMATARY S/O- HITESH RANJAN BASUMATARY R/O- RANGCHALIDHAM JWNGMAPURI P.S- BASUGAON DIST- CHIRANG ASSAM PIN-783372 4: KAMAL BASUMATARY R/O-VILLAGE DANGAGAON P.O AND P.S- KAJALGAON DIST- CHIRANG ASSAM PIN-783386 5: SUMITA DUTTA W/O- BHASKAR JYOTI KONWAR
Page No.# 2/6 R/O- GETHUPATHAR GAON P.O- DIHINGKINAR P.S- NAHARKATIA DIST- DIBRUGARH ASSAM PIN-786610 6: RAJU SONOWAL S/O- LATE BIHURAM SONOWAL R/O- NAHARKATIA KALPANAGAR P.O AND P.S- NAHARKATIA DIST- DIBRUGARH ASSAM PIN-786610 7: DIBIKA MUSHAHARY C/O- JISHNU KUMAR BORO R/O- GWJWNPURI WARD NO- 4 P.O- CHAPAGURI DIST- CHIRANG ASSAM PIN-783380 8: NIKHA RANI HAZARIKA W/O- JOGAT CHANDRA HAZARIKA R/O- DHADUMIA
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