2016 (1) TMI 1395 - SC - VAT and Sales Tax

Filing of Counter affidavits - Transfer of right to use the tug or not - Held that - In view of the importance of the issues that arise for consideration and the fact that any pronouncement from this Court would have far reaching implications not only for Centre-State relationship but the federal character and separation of legislative powers of the Union and the States, it is deemed proper to grant one final opportunity to the defaulting States to file their counter affidavits but only on payment of costs of ₹ 50,000/- by each State in default - List after the counter affidavits have been filed on 6th April, 2016.

Summary

Issues: Failure of some coastal States to file counter affidavits despite court order; Granting final opportunity to defaulting States on payment of costs.

In the judgment, the Supreme Court noted that while the respondent-Union of India and State of Karnataka had filed their counter affidavits as per the court order dated 30.08.2007, other coastal States had failed to do so despite a significant lapse of time. The court highlighted the importance of the issues at hand, emphasizing their implications on Centre-State relationships, federal character, and separation of legislative powers. In light of this, the court decided to provide one final opportunity to the defaulting States to file their counter affidavits. However, this opportunity was subject to a condition that each defaulting State must pay costs of &8377; 50,000/- to the Supreme Court Advocates on Record Welfare Trust within six weeks from the date of the judgment. The court directed that the defaulting States must file their counter affidavits by a specified date after making the required payments. This decision aimed to ensure compliance with the court's orders and uphold the principles of justice and procedural fairness.