“The defects identified by the Division Bench of the High Court in the judgment dated 27 March, 1997, forming the basis for its decision to the effect that the provisions of the Act would not be applicable to the assesses-appellants herein, have been cured by the Amendment and Validation Act of 1997,” the top court observed.
The Supreme Court passed the judgment while dismissing appeals filed by thermal power companies against Himachal Pradesh High Court orders from 2008 and 2009 that had upheld the 1997 Act.
“The activity of the appellant in providing gratis transportation to its employees, and their children, would be a taxable activity under Section 3(1-A) of the Amendment and Validation Act of 1997,” the Court concluded.
Source: Barandbench
