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2015 (3) TMI 1163 - HC - VAT and Sales TaxInterpretation of Notification - Whether can be applied retrospectively or not - Petitioner hotelier was granted eligibility of certificate for exemption for a period of 10 years w.e.f. 5.11.1996 to 4.11.2006 but curtailed upto 31.3.2006 instead of 4.11.2006 by issuing notification dated 31.3.2006 and 15.9.2006, making retrospective amendment which is without authority of law - Held that:- it is a fundamental rule of law that no statute shall be construed to have a retrospective operation unless such a construction appears very clearly in the terms of the Act, or arises by necessary and distinct implication. The Hon'ble Supreme Court held that a subordinate legislation can be given a retrospective effect, if any power is contained in this behalf in the main act. Rule making power is a species of delegated legislation. A delegatee therefor can make rules only within the four-corners thereof. No statute can be construed to have a retrospective operation unless such a construction appears very clearly in terms of the Act – by a delegated legislation the right accrued to the petitioner cannot be taken away. Thus, the Supreme Court held that the amendments carried out could not take away the rights of the petitioner with the retrospective effect. Here, the exemption, which was granted already earlier notification was available to the petitioner up to 4.11.2006, but vide notification dated 15.9.2006 to 31.9.2006, it was restricted up to 31.3.2006, meaning thereby, for a period of near about six months, petitioner has been liable for payment of tax for which there was no power with the State Government to withdraw such exemption with retrospective effect. The aforesaid exemption could not have been withdrawn by the State Government vide notification dated 15.9.2006 with retrospective effect. Therefore, Notification dated 31.3.2006 and 15.9.2006, insofar as it relates to the petitioner only, restricting the exemption of notification till 31.3.2006 is not sustainable under the law and the petitioner who was extended the benefit of exemption from payment of tax till 15.9.2006 shall be entitled to get the aforesaid exemption. - Decided in favour of petitioner
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