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2015 (3) TMI 964 - AT - Service TaxDemand of service tax on suspense account - Amendment to section 67 will be prospective i.e. w.e.f. 10.05.2008 or retrospective - addition reading as "any amount credited or debited, as the case may be, to any account, whether called "Suspense account" or by any other name - amount relating to transaction with associated enterprises - Held that:- Law is well settled that amendment to law can be made retrospectively even bringing an amendment to an Explanation appearing in the statute. But the nature and character of the amendment decides whether such amendment is declaratory or clarificatory and accordingly whether retrospective or not. A declaratory law is always prospective while clarificatory law is retrospective in nature. It is also well settled law that statute making amendment to the effect of declaration of liability is not normally retrospective unless otherwise such intention expressed by legislature or by necessary implication intended to be so. Addition to the Explanation (C) to sub-section (4) of Section 67 with the proposition "and" throws light on the nature and character of both the clauses thereof. It categorically brings out that recording of transactions in two different pattern was enacted from two different dates. Therefore, the addition to the Explanation (C) with effect from 10.05.2008 is prospective in nature and that addition shall be applicable from the day that was enacted in the statute book. Accordingly, there shall be no liability to levy of interest on the gross value of taxable service relating to the period prior to that date. - Decided in favour of assessee.
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