Accrued tax exemption cannot be cut down retrospectively by a later Form C condition under the Central Sales Tax regime.

The HC held that a prospective amendment requiring production of Form C for exemption under the Central Sales Tax Act could not retrospectively curtail an exemption right already accrued under an earlier notification. Because the petitioner's exemption had operated from 22-9-1996 and remained unrevoked for the relevant period, the later notification dated 31-10-2006 was inapplicable. The petitioner was therefore entitled to exemption without filing Form C, and the impugned assessment and tribunal orders were quashed.

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Issues: Whether the notification dated 31-10-2006, which made production of Form C mandatory for availing exemption under Section 8(5) of the Central Sales Tax Act, 1956, could be applied to the petitioner despite an earlier exemption notification and accrued entitlement to tax exemption.

Analysis: The exemption granted under the earlier notification operated from 22-9-1996 and had been extended for the relevant period. The later amendment to Section 8(5) of the Central Sales Tax Act, 1956, introducing the requirement of compliance with Section 8(4), was held to be prospective. A substantive exemption right already accrued under the earlier exemption regime could not be taken away by applying the amended requirement retrospectively, particularly without revocation of the existing entitlement.

Conclusion: The notification dated 31-10-2006 was held inapplicable to the petitioner, and the petitioner remained entitled to exemption without production of Form C.

Final Conclusion: The writ petitions succeeded and the impugned assessment and tribunal orders were quashed, leaving the petitioner's exemption entitlement intact for the relevant period.

Ratio Decidendi: A prospective amendment imposing additional conditions for tax exemption cannot retrospectively curtail an accrued and unrevoked exemption entitlement.

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