An amendment withdrawing incentives granted to exporters was made in the Act in 2005 but was implemented retrospectively from April 1, 1998.
A division bench of acting Chief Justice Bhaskar Bhattacharya and Justice J B Padriwala while pronouncing the judgement yesterday held that the amendment was valid but it cannot be implemented from retrospective effect.
The HC gave the judgement while hearing a bunch of petitions (around 70) transferred to Gujarat High Court by Supreme Court in February, where petitioners, mainly exporters, challenged the implementation of amendments from retrospective effect to Section 80-HHC of I-T Act.
"The amendment is valid, but it cannot be implemented from retrospective effect. The court has held while pronouncing the judgement," a lawyer appearing for the petitioners said.
The court observed amendment made by Taxation Law (Amendment) Act, 2005, cannot be applicable with retrospective effect i.E from 1998-99 as it was unconstitutional. It, however, stated that the amendment could be applicable prospectively if needed. MORE
