PIL against illegal taxation: HC gives Nagaland govt 5 weeks to respond

Source:-https://morungexpress.com

Dimapur, December 12 (MExN): The Gauhati High Court, Kohima bench on December 11 admitted a Public Interest Litigation (PIL) filed by three individuals representing the Against Corruption and Unabated Taxation (ACAUT) Nagaland, Public Action Committee (PAC) and Business Association of Nagaland (BAN) against illegal tax collections that are allegedly going on in Nagaland.

In the PIL, the respondents have been named as The Government of Nagaland represented by the Chief Secretary, Chairperson of the Central Board of Indirect Taxes (Government of India), Commissioner and Secretary Municipal Affairs, Commissioner of Nagaland, Commissioner of Taxes, DMC Administrator, KMC Administrator and DGP Nagaland.

A two-judge bench comprising of Justice S Serto and Justice S Hukato Swu in an order issued on December 11, served a notice to the respondents, returnable within five weeks.

The senior government advocate accepted the notice on behalf of all respondents except respondent No. 2 (Central Board of Indirect Taxes). The petitioners have been asked to take steps to serve notice to respondent No. 2 within three days.

The court has listed the matter for further hearing after the winter vacation.

In the PIL, the petitioners noted that they have been fighting for the cause of the people over the years in matters relating to illegal taxation. The petitioners stated that they are ‘well conversant’ with the trend of taxation in the State.

The petitioners stated that the PIL has been filed under Article 226 of the Indian Constitution seeking the Court’s intervention to pass necessary directives with regard to the existing illegal taxation plaguing the State and consequently pushing the public to bear the brunt with untold hardships and sufferings.

They highlighted that a representation was sent to the respondents on November 25, 2020 for necessary action and steps.

However, till date no action has been taken for resolving the grievances highlighted in the representation, they stated.

The petitioners also stressed that they are not challenging the Goods and Services Tax or any other tax imposed legally in accordance with the provisions of the Constitution.

However, they added that the menace of illegal taxation in the State has been creating fear and resentment amongst businessmen and the public.

A brief compilation of the ‘fact finding report’ on illegal taxation was also presented in the PIL.

The petitioners sought the Court’s intervention in directing the respondents to remove the toll booths set up by the Municipal Councils, Town Councils, public organization, associations and any other unauthorized organization in the National Highway 29 and 2 within the territory of Nagaland.

They also prayed for the Court to direct the respondents to take stringent steps for stopping illegal collection of money/ illegal taxation in the state of Nagaland once and for all, besides stopping collection of Royalty Tax on sand, stones or on any item which pertains to inter-state goods and services brought from outside of Nagaland and which has been covered by the Goods and Services Tax.

They also sought for stopping illegal deduction of the salary of the government employees for the welfare of the Naga Political Groups or any other unauthorized groups not permissible by law.

Further, they prayed for the Court to direct the respondents to make stringent policy/law/rule for checking the menace of illegal taxation/illegal collection of money by unauthorized persons, groups, associations, governmental departments, union and any other group.

The petitioners also sought the Court’s intervention to ensure the safety of the business community in Nagaland, and abrogate the lessee system in collecting tax on behalf of the government. They also prayed for the Court to direct the respondents to put up CCTv camera in all Police check points in the National Highway within the jurisdiction of Nagaland to prevent illegal collection of money.

Setting up a strong grievance redressal mechanism for addressing the grievances of the business community and consumers in Nagaland, setting up a helpline for businessmen/truck drivers/entrepreneurs in distress to seek assistance etc were also listed by the petitioners.