Revisional Powers U/S 56 KVAT Act Are Limited, Clarificatory Orders Have Only Prospective Effect: Kerala High Court

K.G. Rejimon Vs State of Kerala (Kerala High Court) Conclusion: High Court upheld the validity of the suo motu power under Section 56 and the classification finding, but held that the clarificatory order holding that “thermic fluid heaters” were not specifically covered under Schedule III and were taxable at 12.5% as a residuary (RNR) item under SRO 82/2006 could operate only prospectively from 07.04.2016 onwards, and not for AY 2009–10. Held: Assessee was a dealer engaged in trading thermic fluid heaters, was assessed for the year 2009–10 under the KVAT Act, 2003. The initial assessm...