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2018 (9) TMI 1111 - HC - VAT and Sales TaxConstitutional validity of Madhya Pradesh Value Added Tax Amendment (Validation) Act, 2017 - Madhya Pradesh VAT Act, 2002 - Validation clause. Held that:- The object and reason to bring the said Validation Act is that there is belief that in case of manufacture of taxable as well as tax free goods proportionate Input Tax Rebate on inputs is permissible, especially in view of specific provisions of admissibility of full amount of Input Tax Rebate in case of taxable goods and of the amount which is in excess of 4% in case of tax free goods, proportionate Input Tax Rebate was being allowed since beginning i.e. from 1st April, 2006 - Since there was a need of explaining the VAT Act regarding the Input Tax Rebate on the entire raw material, whereas by-products are both taxable and nontaxable, therefore, using the powers conferred under the Constitution, the amending notification has been issued providing explanation for Input Tax Rebate which shall be computed after apportioning the Input Tax in proportion to the value of Schedule-I and Schedule-II goods so manufactured. It is well settled law that validating act cannot validate and effect if it simply deem legal consequences, without amending law from which the said legal consequence could follow - As per Validation Act, it is clear that by a competent legislative provision, the substratum of foundation of a judgment has been removed with retrospectively, the said exercise is a valid legislative exercise and it does not suffer from any invalidity. Petition dismissed.
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