1972 (9) TMI 136 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Validity of Section 9 of the Central Sales Tax (Amendment) Act, 1969, in setting aside previous court orders and reviving original assessment orders.
2. Automatic revival of original assessment orders set aside on appeal or revision following the decision in Yaddalam's case.
3. Availability of machinery provisions in the Mysore Sales Tax Act, 1957, for recovering refunded tax based on Yaddalam's case without rectification or revision of final assessment orders.

Detailed Analysis:

1. Validity of Section 9 of the Central Sales Tax (Amendment) Act, 1969:
The court examined whether Section 9 of the Central Sales Tax (Amendment) Act, 1969, could invalidate the High Court's order in Writ Petitions Nos. 550 to 554 of 1967, which quashed the assessment orders and directed the refund of tax collected. The court noted that the amendment aimed to render the Supreme Court's decision in Yaddalam's case ineffective and validate assessments previously set aside. The court concluded that Section 9 operates to render ineffective the order of the High Court in the aforementioned writ petitions and validates the original assessment orders as if they were made under the amended provisions of Section 6(1-A) of the Central Sales Tax Act, 1956.

2. Automatic Revival of Original Assessment Orders:
The court addressed whether Section 9 of the Central Sales Tax (Amendment) Act, 1969, automatically revives original assessment orders that had been set aside on appeal or revision following Yaddalam's case. The court held that the amendment fundamentally altered the conditions on which the decision in Yaddalam's case was based, thereby rendering the decision ineffective. Consequently, the original assessment orders are deemed valid and effective as if made under the amended Section 6(1-A) of the Central Sales Tax Act, notwithstanding any judgment, decree, or order to the contrary.

3. Machinery Provisions for Recovering Refunded Tax:
The court examined whether there were adequate machinery provisions in the Mysore Sales Tax Act, 1957, read with Section 9 of the Central Sales Tax Act, 1956, for recovering the amount of tax refunded based on Yaddalam's case without rectifying or revising final assessment orders. The court concluded that the demand made pursuant to the original assessment orders, now rendered valid and effective, does not require any additional machinery provisions beyond those already contained in the Mysore Sales Tax Act, 1957, read with the Central Sales Tax Act.

Conclusion:
1. Section 9 of the Central Sales Tax (Amendment) Act, 1969, operates to render ineffective the High Court's order in W.P. Nos. 550 to 554 of 1967 and validates the original assessment orders.
2. Section 9 likewise renders ineffective any order made by an appellate or revisional authority following Yaddalam's case and validates the original assessment orders set aside by such authority.
3. The recovery of tax pursuant to the validated original assessment orders does not require any additional machinery provisions beyond those already in the Mysore Sales Tax Act, 1957, read with the Central Sales Tax Act.