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Informative

Work Contracts Prior to 11.05.2002 cannot be Taxed under Central Sales Tax Act: Madras HC

Update / Judgement Date

23 Sept 2024

Source

Taxscan

Author

Team — WCP Legal Desk

Reading Time

1 min read

Civil LawExcise, VAT & Custom

The Madras High Court ruled that work contracts executed before May 11, 2002, are not subject to taxation under the Central Sales Tax (CST) Act. The court noted that the law at the time did not permit the imposition of CST on such contracts. This ruling offers clarity for taxpayers with historical contracts and reaffirms the legal principle that retrospective application of tax laws requires explicit legislative intent.