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2009 (7) TMI 1293 - MADRAS HIGH COURTEnhancement of Tax Rate - paper based laminated sheets - rate enhanced to 16% from 10% - whether interpretation given by the Supreme Court with respect to entry made under the Central Excise Tariff Act, 1985, with regard to paper based decorative laminated sheets can be relied on by the first respondent to collect tax under TNGST Act, 1959, which is a separate enactment passed by the State Legislature? Held that: - the is covered by the recent judgment of this Court in CCE v. Mysore Electricals Industries Ltd, [2006 (11) TMI 202 - SUPREME COURT OF INDIA], where this Court held that a beneficial circular has to be applied retrospectively while oppressive circular has to be applied prospectively. Thus, when the circular is against the assessee, they have right to claim enforcement of the same prospectively. In tax matters, the clarifications issued can be applied only prospectively, failing which it will cause hardship to the assessees. In Manish Maheshwari v. Assistant Commissioner of Income-tax and Another, [2007 (2) TMI 148 - SUPREME COURT OF INDIA], the Supreme Court held that while two interpretations are possible, the Court would ordinarily interpret the provisions in favour of the tax-payers and against the revenue - In the cases on hand, admittedly there was ambiguity with regard to the rate of tax payable by the assessees for the paper based decorative laminated sheets and the benefit of the said ambiguity should be extended to the petitioner-assessees and not to the department/revenue. The impugned clarification issued by the first respondent and the consequential show cause notices/orders passed in reassessment, issued by the second respondent are unsustainable - petition allowed.
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