1975 (12) TMI 147 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Effective date of G.O. Ms. No. 437.
2. Retrospective effect of notifications issued u/s 9 of the Andhra Pradesh General Sales Tax Act.
3. Necessity of publication in the Andhra Pradesh Gazette for notifications.

Summary:

Effective Date of G.O. Ms. No. 437:
The petitioners, registered dealers, claimed exemption from sales tax on hank yarn based on G.O. Ms. No. 167, which was later rescinded by G.O. Ms. No. 437. The petitioners argued that G.O. Ms. No. 437 should be effective only from its publication date in the Andhra Pradesh Gazette, i.e., 1st July 1971, and not from the earlier date of 19th April 1971. The court agreed, stating, "G.O. Ms. No. 437 dated 18th May 1971, is effective and enforceable only on and from 1st July 1971, the date of its publication in the Andhra Pradesh Gazette."

Retrospective Effect of Notifications Issued u/s 9:
The court examined whether the State Government could give retrospective effect to notifications issued u/s 9. It was held that "unless a power to give effect retrospectively is conferred for making a rule or issuing a notification, it is not permissible to the delegate to exercise that power retrospectively." The court cited precedents, including the Supreme Court's decision in Income-tax Officer, Alleppey v. M.C. Ponnoose, which emphasized that a delegate cannot issue a notification with retrospective effect unless expressly empowered.

Necessity of Publication in the Andhra Pradesh Gazette:
The court underscored the necessity of publication for the effectiveness of notifications, stating, "the necessity of publication and promulgation for public information is all the more essential." The court referred to previous decisions, including R. Srihari Naidu v. Government of Andhra Pradesh, which held that subordinate legislation takes effect from the date of its publication in the official Gazette.

Conclusion:
The court concluded that G.O. Ms. No. 437 could not be given retrospective effect and was effective only from the date of its publication. The writ petition was allowed, and the respondents were restrained from levying or collecting sales tax on hank yarn for the period between 19th April 1971 and 30th June 1971. The petition was allowed without costs, with an advocate's fee of Rs. 100.