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2008 (9) TMI 893 - HC - VAT and Sales TaxClarification to the rate of tax applicable to the goods in question - Circular challenged - Held that:- Any circular which beneficially affects the rights of dealers as it stood at the beginning of the assessment year will apply to the entire year and the modification/withdrawal of such circular will not be relevant for that current year but will only apply from the beginning of the next assessment year. As it is clear that the second respondent has the power to withdraw the earlier circular issued.Though the subsequent circular would have the effect of nullifying the earlier circular as it is only an interpretation of the provision, it will not have the effect of denial of the benefit of earlier circular. In other words, the impugned circular has to be only prospective and not retrospective. In that view of the matter, the petitioner is not liable to pay tax at 12.5 per cent. for the period covered under the earlier circular and is liable to pay tax at 12.5 per cent., which arises only from the date of the impugned circular.
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