Gangtok: The Sikkim National People's Party on Monday demanded the reintroduction of the Sikkim Tax Manual, which was repealed prior to the introduction of the Central Income Tax Act, (1961) in the state in 2008.

SNPP president Biraj Adhikari said the party also wanted to challenge the extension of the central Act in the state as it was allegedly done "illegally" by violating the provisions of Article 371f of the Indian Constitution, which provides a special status to Sikkim after its merger with the Indian Union in 1975.

"Our party believes the extension of the Income Tax Act to Sikkim was a most blatant violation of the hallowed provisions of the Article 371f... The SNPP demands that the Sikkim Tax Manual be reintroduced and the illegal extension of the Income Tax Act be challenged in a court of law," Adhikari told reporters here.

Before the extension of the Income Tax Act in Sikkim in 2008, taxes were levied under the provision of the Sikkim Income Tax Manual of 1948, which had been in vogue in the state since it was an independent country. However, while extending the Income Tax Act to Sikkim, holders of Sikkim Subject Certificates, which were issued during the time of the Chogyal rulers, were exempted from the purview of the law.

SSC holders constitute the vast majority of the Sikkim's over six lakh population.

Adhikari also alleged that the Income Tax authorities had been sending notices to some of the over 400 families called early settlers in violation of a Supreme Court order.

Early settlers are people of Indian origin who have been living in Sikkim since the time of the Chogyals, the erstwhile rulers of the Himalayan state. "Why are early settlers being served notices by the Income Tax department when they have acquired a stay order from the Supreme Court?" asked the SNPP president.

The early settlers have refused to file income tax returns and demanded exemption that applies to those who are SSC holders. In response to their petition, the Supreme Court had in February 2013 ordered a stay on the recovery of income tax dues from them.