VAT’s right case for HC: Ashok Mitra

The fierce churning within the CPI(M) over launching Value Added Tax (VAT) in the state from April 1 rose to the surface today with former W...

The fierce churning within the CPI(M) over launching Value Added Tax (VAT) in the state from April 1 rose to the surface today with former West Bengal finance minister Ashok Mitra filing a case in High Court challenging the new system. Mitra’s efforts are being backed by former advocate general of Tripura Bikash Ranjan Bhattacharya, a member of the party’s state legal cell and its mayoral candidate for Kolkata—if the CPI(M) wins the civic elections in June. Also on Mitra’s side is Kamal Basu, former Kolkata mayor and senior party leader.

‘‘I will fight it (VAT) tooth and nail. I will take the issue to the apex court, if necessary. I am consulting my lawyers and finalising documents,’’ Mitra told The Indian Express.

Bhattacharjee admitted that he was consulted by Mitra on the case. ‘‘I have given him legal advice. I am still against VAT because it will harm the interests of states,’’ Bhattacharjee told The Indian Express.

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Mitra said he has approached the High Court because VAT is ‘‘against the basic structure of the Constitution’’.

‘‘According to the Constitution, neither the state government nor the union government has the power to abolish sales tax, which is one of the major sources for states to generate revenue. By forfeiting it to the Centre, the states will be more dependent on the Centre,’’ Mitra said.

In a booklet published earlier, Mitra had launched a scathing attack on West Bengal Finance Minister Ashim Dasgupta, chairman of the empowered committee of state finance ministers appointed to implement VAT by Union Finance Minister P Chidambaram.

Mitra had accused Dasgupta of being one of the ‘‘yes men of the central government’’.

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‘‘The Union Finance minister had set up a committee, which comprised state ministers who played second fiddle to the diktats of the central government. For reasons best known to them, these ministers bowed to the pressures of the central government,’’ Mitra said.

However, Dasgupta refused to react to Mitra’s charges. ‘‘I am aware of what is happening but I don’t want to make any comment on this issue,’’ Dasgupta told The Indian Express.