Clarificatory incentive notification held retrospective, allowing shifted industrial units to claim unavailed benefits in pending matters.

A clarificatory notification issued on 24 March 2005 was treated as retrospective because it was intended to remove hardship and make explicit that a shifted industrial unit within the State could continue to claim the unavailed portion of incentive benefits, subject to the stated conditions. The later issuance of the notification did not bar consideration of pending claims. The petitioner was therefore entitled to have its claim assessed under that notification, and the matter was remitted for fresh decision in accordance with law.

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Issues: Whether the notification dated 24 March 2005 allowing a shifted industrial unit to avail the unavailed portion of incentive benefits operated retrospectively and applied to pending matters, and whether the petitioner was entitled to have its claim reconsidered on that basis.

Analysis: The revision concerned a unit that had already been granted incentive benefits for a fixed period but had later shifted its plant and machinery within the State for business reasons. The notification issued on 24 March 2005 was examined in the light of its purpose, namely to remove hardship and clarify that a dealer shifting the unit as a whole within the State could continue to avail the unavailed benefit, subject to the stated conditions. The Court treated the notification as clarificatory rather than creating a fresh substantive benefit, and held that such a notification takes effect retrospectively where it is intended to explain and make explicit the existing position. On that basis, the petitioner's claim could not be rejected merely because the notification was issued later.

Conclusion: The notification was held to be retrospective in operation and applicable to pending matters, and the petitioner was entitled to have its claim considered under that notification. The matter was therefore sent back to the Tax Board for fresh decision in accordance with law.

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