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2009 (7) TMI 1156 - HC - VAT and Sales TaxAmendment to the definition of "manufacture" in section 2(17) of the Bombay Sales Tax Act, 1959 made by the Maharashtra Act No. 9 of 1997, be struck down to the extent of its retrospectivity with effect from July 1, 1981 seeked Held that:- In order to protect the Revenue and the tax collected which had already been spent on welfare activities of the State, the Legislature amended the definition of "manufacture" by amending section 2(17) of the Sales Tax Act. The Legislature did not overrule or reverse the decision of the court by amending section 2(17) of the Sales Tax Act. The Legislature only removed the flaw in the definition of "manufacture", on account of which lacquering of polyester films was held to be "not manufacture" by this court. It is settled principle of law that the Legislature cannot reverse or overrule a decision given by a court, but can amend the law so as to remove a flaw or lacuna in an Act which leads to a particular interpretation at the hands of the court. It is possible for the Legislature to alter the premise or the basis on which a decision is based and this is not impermissible under the Constitution. It is also a settled principle of law that such amendment can be made with retrospective effect unless it is specifically prohibited by a provision of the Constitution (like article 20 of the Constitution which prohibits a criminal law to be retrospective) or where the Legislature lacks the legislative competence. Appeal dismissed.
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