Rule 21(8) of Punjab VAT Rules cannot apply retrospectively: SC

State of Punjab & Ors. Vs Trishala Alloys Pvt. Ltd. (Supreme Court of India) Supreme Court dismissed the State of Punjab’s appeal and upheld the Punjab & Haryana High Court’s judgment that Rule 21(8) of the Punjab VAT Rules, 2005, could not have retrospective application. The case involved Trishala Alloys Pvt Ltd, a manufacturer of iron and steel goods, which had claimed Input Tax Credit (ITC) on goods purchased at a higher tax rate of 4.5%. The tax rate on such goods was later reduced to 2.5%, and Rule 21(8) was introduced effective February 1, 2014, to limit ITC to the re...