2008 (2) TMI 823 - HC - VAT and Sales Tax

Summary

Issues involved: Proper interpretation of finance department notifications u/s 7 of the Orissa Sales Tax Act, 1947.

Interpretation of Section 7: The court noted that Section 7 of the Act is prospective in operation, and laws are generally made prospectively unless there is a clear indication for retrospective application. The court cited precedents to support this principle, emphasizing that laws dealing with fiscal matters, like Section 7, are to be interpreted accordingly.

Validity of Notifications: The court found that the notifications dated August 16, 1990, and April 28, 1992, issued under Section 7 of the Act, were attempting to operate retrospectively, which is not permissible as per the prospective nature of the section. Therefore, the court held that both notifications must be read to operate only from the date of issuance, not retrospectively.

Operative Effect of Notifications: The court upheld both notifications but clarified that they should only have prospective effect, not retrospective. Any attempt to apply them retrospectively was deemed legally unsustainable.

Adjustment of Benefits: The Revenue suggested adjustments due to the prospective reading of the notifications. However, the court stated that it was not within its jurisdiction to calculate such adjustments. It directed any necessary adjustments to be made by the Revenue authority in accordance with the court's observations.

Disposal of Writ Petition: With the above declarations, the writ petition was disposed of, and a related miscellaneous case was also considered disposed of as a result.