VAT Liability On IMFL On-Shop Owners Statutory Since 2015: Gauhati High Court

The Gauhati High Court held that VAT liability on Indian Made Foreign Liquor (IMFL) on-shop owners has been statutory since 2015 and declined to stay the impugned circular clarifying the levy. The Court observed that the circular merely reiterates existing statutory obligations and does not impose a new tax burden. Rejecting the challenge by license holders, the Bench emphasised that fiscal statutes must be interpreted strictly and that administrative clarifications consistent with law cannot be interdicted. The ruling reinforces tax certainty in the excise and VAT regime.