Kanthi Enterprises & Ors vs State Of Karnataka & Ors

The appellants challenged the retrospective application of an Explanation added to Section 5(1-4) of the Karnataka Sales Tax Act, 1957, introduced by Act No. 1 of 1996. The legal issue centered on whether the state government could retrospectively amend tax legislation to alter liability. The Supreme Court examined the appeals following the High Court of Karnataka's refusal to strike down the retrospective operation of the impugned provision.