1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1781 OF 2008 The Commissioner of Income Tax – 3, Mumbai ..Appellant. Versus M/s.Ford Credit Kotak Mahindra Ltd., Mumbai ..Respondent. Mr.P.S. Sahadevan for the appellant. Mr.F.V. Irani with Mr.A.K. Jasani for the respondent. CORAM : V.C. DAGA & J.P. DEVADHAR, JJ. DATE : 26th JUNE, 2009 P.C. : 1. Heard learned counsel for the revenue and the learned counsel appearing for the respondent-assessee. Registry is directed to register the appeal. Objections, if any are over-ruled. 2. During the course of hearing, learned counsel for the revenue fairly agreed to the statement made by the learned counsel for the respondent – assessee, that the issue sought to be raised in this appeal is squarely covered by the judgment of the Supreme Court in the case of Star India Private Limited V/s. Commissioner of Central Excise. [2006] 280 ITR 321 (SC), wherein identical question on the identical provision was considered and the Supreme Court was pleased to hold that if the legislation is brought on the statute with retrospective effect, then the liability to pay interest cannot arise retrospectively since such a liability would be in the nature of punishment. In this view of the matter, we see no substantial question of law involved in this appeal. The appeal is, therefore, dismissed with no order as to costs. (J.P. Devadhar, J.) (V.C. Daga, J.)