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2017 (5) TMI 735 - HC - VAT and Sales TaxLevy of VAT - unmanufactured tobacco - Effect of the clarification - retrospective or prospective - neither the manufacturer collected the tax from the petitioners, nor the petitioners have collected the same from its customers - case of petitioners is that as per the provisions of the Act of 2002, the manufacturer shall levy the VAT on sell and collect it from the petitioners and then the petitioners shall in turn recover the same from its customers - Held that: - the addition of explanation to Entry No. 45A under notification dated 31.03.2012 is substantive provision and it is not merely clarificatory, as such would operate prospectively. It will have to be held that, unmanufactured tobacco sold in packets under a brand name would not be taxable from 01.04.2007 to 31.03.2012. The impugned trade circular 9T dated 30.06.2012 stating that explanation is merely clarificatory is held to be erroneous to that extent - The explanation to Entry 45A of the Maharashtra Value Added Tax would operate prospectively and not retrospectively - matters are remanded to the Tribunal for deciding it afresh - appeal allowed by way of remand.
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