Dr. D.Y. Chandrachud, J.

The constitutional validity of the Maharashtra Value Added Tax (Levy, Amendment and Validation) Act, 2009 is challenged. The challenge, during the course of the hearing is to the retrospective operation of the amendment and validation which relates back to 1 April 2005 when the principal legislation came into force.

Package schemes of incentive

2. Since 1964, the Government of Maharashtra had introduced Package Schemes of Incentives to achieve a dispersal of industries outside the Bombay-Thane-Pune belt and to attract industries to underdeveloped and developing areas of the State. The Package Scheme of Incentives of 1964 was followed by amended schemes in 1969, 1973, 1976, 1979 and 1983. On 30 September 1988, the State Government notified a new package scheme of incentives for the period between 1 October 1988 and 30 September 1993 with a view to rationalize the scope, scale and mode of release of incentives and accelerate the dispersal of industries from the developed areas of the State to underdeveloped regions. The Package Scheme of Incentives of 1988 was succeeded by a scheme which was notified on 7 May 1993.

Scheme of 1988

3. Under the Pac