EUROTEX INDUSTRIES & EXPORTS LTD vs STATE OF MAHARSHTRA

The Supreme Court upheld the constitutional validity of the Maharashtra Value Added Tax (Levy, Amendment and Validation) Act, 2009, which amended the Maharashtra Value Added Tax Act, 2002 with retrospective effect from April 01, 2005. The Court affirmed that the legislature has the power to enact laws retrospectively, but acknowledged the appellants' concerns regarding the adverse impact of the amendment on industrial units that had made significant investments based on prior VAT exemption promises. Ultimately, the Court dismissed the appeals, affirming the High Court's decision that the retrospective amendment is valid in law.