Star India (P) Ltd. vs Cce

The Supreme Court addressed the issue of liability for service tax under the Finance Act, 2002, specifically interpreting the validation clause and its retrospective effect. It held that while the legislature can enact retrospective laws, such laws cannot impose penalties or interest retrospectively, as this would amount to a quasi-punishment. The Court clarified that the appellant was liable to pay the service tax within thirty days of the Finance Bill's assent, but not liable for interest accrued prior to that period, thus overturning the Tribunal's decision regarding interest liability.