M/S Varkisons Engineers vs State Of Kerala & Anr

The Supreme Court addressed the applicability of the amended provisions of the Kerala Finance Act, 2001, specifically Section 7 of the Kerala General Sales Tax Act, 1963, for the Assessment Year 2001-2002. The Court held that the amendment, which increased the tax rate per machine from Rs.30,000 to Rs.90,000 effective from 23rd July 2001, is applicable for the entire assessment year, rejecting the appellant's claim for the lower rate based on the initial date of the assessment year. The Court clarified that retrospective laws do not impair vested rights but can impose new obligations, thus affirming the Division Bench's decision on the matter.