TMI Blog2019 (3) TMI 768X X X X Extracts X X X X X X X X Extracts X X X X ..... he ratio of this judgment has been consistently followed by this Bench in deciding the matters relating to taxation and exemptions etc. Even where an explanation has been inserted in the section or rule, unless there is a contrary pronouncement of a higher judicial forum, such explanations have always been considered to have prospective application and not retrospective application. Constitutional Bench of Hon’ble Apex Court in the case of Dilip Kumar [2015 (12) TMI 247 - SUPREME COURT], held that taxation statutes should be strictly interpreted in the way they are drafted and there is no scope for any intendment in it. It does not matter whether any hardship is caused to any one or a person goes tax free because of the language of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterest but are only contesting the amount of penalty imposed under section 77(1) of the Finance Act, 1994. He further submits that w.e.f. 10.05.2013, this section was amended, prescribing a uniform penalty of ₹ 10,000/- for not taking the registration before rendering taxable services. Prior to this date, they were liable to penalty of ₹ 200/- per day or ₹ 5,000/-, whichever is greater. For the period in question, they were covered by the earlier provisions from 01.04.2010 to 14.05.2013 and thereafter by the new provisions from 14.05.2013 to 17.05.2014 and penalty under section 77 has been imposed accordingly by the lower authorities. It is his submission that the section was amended in 2013 reducing the penalty and they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken a stand that tax statutes should be interpreted as to have only prospective effect unless contrary intention is apparent in the statute itself. Therefore, no penalty under the amended section 77 applies to the period when the offence was committed prior to this date. Therefore, the appeal is devoid of merits and may be rejected. 7. I have considered the arguments on both sides and perused the records. The judgment of Hon ble Apex Court in the case of T Barai vs. Henry AH Hoe and another (supra) was with respect to a specific criminal prosecution. Therefore, Hon ble Supreme Court also referred to Article 20(1) of the Constitution of India and held that there cannot be any ex post facto law. The question is whether the ratio of the j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o any one or a person goes tax free because of the language of the statute. In view of this landmark judgment of Hon ble Apex Court regarding the interpretation of taxation statutes, I have no doubt that the taxation statute should be interpreted and applied as it stood during the relevant period. 9. In view of the above, I find that the ratio of the above two judgments of Hon ble Apex Court which prevail over any other decisions leaving me with no choice but to uphold that section 77 applies to the case of appellant as it stood during the relevant period because there is no contrary intention indicated in the amended statute. Accordingly, I find that the impugned order needs to be upheld and the appeal is liable to be rejected and I do ..... X X X X Extracts X X X X X X X X Extracts X X X X
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