1961 (11) TMI 51 - HC - VAT and Sales Tax

Summary

Issues:
1. Assessment of a dissolved firm under the U.P. Sales Tax Act.
2. Retroactive application of the U.P. Sales Tax (Second Amendment) Act, 1957 and the U.P. Sales Tax Amending Act, 1961.

Analysis:
The judgment involves two writ petitions challenging the Sales Tax Officer's orders assessing a dissolved firm for the years 1953-54 and 1954-55. The petitioner argues that no assessment can be made on a firm dissolved before the U.P. Sales Tax (Second Amendment) Act, 1957, came into force. The petitioner contends that Act XXXII of 1957, which introduced section 3-C allowing assessment of dissolved firms, cannot be applied retrospectively. The U.P. Sales Tax Amending Act, 1961, further clarified the provisions. The petitioner asserts that the legislation cannot take away vested rights by making assessments retrospective.

Regarding the retroactive application, the court examines the language and intent of the statutes. The court notes that Act XV of 1961 validated assessments made before or after the amendment by Act XXXII of 1957, with retrospective effect. The court analyzes the wording of the statutes to determine the legislative intent. It emphasizes that the Legislature can make legislation retrospective if the language is clear and unambiguous, as seen in the provisions of Act XV of 1961 and Act XXXII of 1957.

The court rejects the petitioner's argument, stating that Act XV of 1961 was intended to have retrospective effect. It highlights that the deletion of specific words from the statutes and the clear language used indicate the legislative intent for retrospective application. The court emphasizes that the legislation's purpose was to address doubts and provide clarity regarding the assessment of dissolved firms under the Sales Tax Act. Consequently, the court dismisses the petition, noting that it was filed before the U.P. Sales Tax (Amendment) Act XV of 1961 came into force, and no costs are awarded.

In conclusion, the judgment upholds the retrospective application of the U.P. Sales Tax (Second Amendment) Act, 1957, and the U.P. Sales Tax Amending Act, 1961, allowing for the assessment of dissolved firms even for periods before the specified dates. The court's analysis focuses on the legislative intent, statutory language, and the validity of retrospective application in this context.