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2015 (3) TMI 1315 - HC - VAT and Sales TaxPayment of tax at compounded rates - whether the petitioners who are admittedly dealers engaged in the production of granite metal with the aid of mechanized crushing machines, are entitled to claim exemption from separate assessment, in respect of the M-sand produced by them using VSI/HIS machines, that have not been reckoned for the purposes of compounding under Section 8(b) of the KVAT Act? Held that: - Section 8(b) of the KVAT has been amended by the Finance Act, 2014 and, specific provisions, providing for payment of compounded tax on VSI/HIS machines of various sizes, have been introduced. The newly introduced amendments are substantive in nature and hence, in the absence of any express indication to the contrary, necessarily prospective in their operation. The said amendment, introduced with prospective effect, also suggests that, for the prior period, the legislature never intended to include VSI/HSI machines in the reckoning of compounded tax under Section 8(b) of the KVAT Act. Petition allowed by declaring the impugned notices and orders issued/passed by the respondents as illegal and legally unsustainable - decided in favor of petitioner.
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