1988 (1) TMI 37 - SC - Income Tax

Summary

Issues Involved:
The appeal involves the rejection of a review petition by the High Court regarding the validity of the Travancore Tobacco Act I of 1087 M.E. and the refund of licence fees collected under the Act during specific years.

Judgment Summary:

Validity of the Travancore Tobacco Act I of 1087 M.E.:
The appellant-State appealed against the High Court's order in a review petition seeking to challenge the judgment that declared the Act invalid. The Validation Act 9 of 1964 validated the Travancore Tobacco Act with retrospective effect. The Supreme Court remanded the matter to the High Court for a fresh decision, which subsequently held that the Validation Act was not ultra vires. The High Court initially refused to entertain the review petition, citing technical reasons. The Supreme Court found the High Court's refusal unjustified and allowed the appeal, directing the High Court to set aside the order for refund of licence fees collected under the Act.

Review Petition Competency:
The High Court's refusal to entertain the review petition was deemed erroneous by the Supreme Court. Despite subsequent validation of the Act, the High Court based its earlier judgment on the Act being ultra vires. The Supreme Court held that the High Court should have considered the review petition, leading to the setting aside of the order for refund. Consequently, the State was not required to refund the amount in question.

Costs:
No costs were awarded in the matter.

In conclusion, the Supreme Court allowed the appeal, set aside the High Court's order refusing the review petition, and directed the High Court to revoke the order for refund of licence fees collected under the Travancore Tobacco Act I of 1087 M.E.