M/S. Indodan Industries Ltd vs State Of U.P. & Ors

The Supreme Court addressed the retrospective applicability of sub-Section (2B) of Section 9 of the Central Sales Tax Act, 1956, inserted by the Finance Act, 2000, and the validity of Section 120 of the Finance Act, 2000. The Court held that sub-Section (2B) does not operate retrospectively to cover assessment years prior to its enactment, thus invalidating the retrospective effect claimed by Section 120. Consequently, the appeals were allowed, and the provisions for interest on delayed payment were deemed not applicable to the specified assessment years.