https://www.taxtmi.com/caselaws?id=234537 Retrospective validation of section 93 of the Maharashtra Value Added Tax Act was upheld because the amendment cured the earlier defect by supplying the missing mechanism for proportionate incentive computation under package schemes, rather than creating a fresh levy. The validating legislation was treated as removing the basis of invalidity and was therefore constitutionally permissible. By contrast, the retrospective penalty under section 93(2) was struck down because penal liability cannot be imposed retrospectively in a harsh or arbitrary manner. The penalty provision was confined to prospective operation, while the validating amendment otherwise remained effective in favour of Revenue. en-us Mon, 10 Jun 2013 00:00:00 +0530 Sat, 30 Aug 2014 13:01:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=234537 Retrospective validation of section 93 of the Maharashtra Value Added Tax Act was upheld because the amendment cured the earlier defect by supplying the missing mechanism for proportionate incentive computation under package schemes, rather than creating a fresh levy. The validating legislation was treated as removing the basis of invalidity and was therefore constitutionally permissible. By contrast, the retrospective penalty under section 93(2) was struck down because penal liability cannot be imposed retrospectively in a harsh or arbitrary manner. The penalty provision was confined to prospective operation, while the validating amendment otherwise remained effective in favour of Revenue. Case-Laws VAT and Sales Tax Mon, 10 Jun 2013 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=234537