9911796707
TMI Blog1966 (12) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... . Sales Tax Appellate Tribunal[1963] 14 S.T.C. 36., Poulose Bros. v. State of Kerala[1963] 14 S.T.C. 40. and K.C. Antony v. Sales Tax Officer[1964] 15 S.T.C. 620. The correctness of these decisions is not challenged before us. 3.. The Kerala Sales Tax (Levy and Validation) Act, 1965, was passed in order to abrogate the non-liability that arose as a result of the three decisions mentioned above. Section 3 of the Act-which in view of sub-section (3) of section 1 of the Act should be deemed to have come into force on 1st April, 1958-is the section that imposes the liability to tax on the purchase of copra and cashew-nut kernel during the period from 1st April, 1958 to 31st March, 1963. That section consists of four sub-sections and reads as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt and collection (including refund) of any tax levied under that Act." 4.. The Kerala Sales Tax (Levy and Validation) Act, 1965, was enacted by the President in exercise of the powers conferred by the Kerala State Legislature (Delegation of Powers) Act, 1965. We entertain no doubt that the enactment of a section like section 3 is competent under the Constitution and that the retroactive operation given to that section is also within the power conferred by the Constitution. 5.. The attack before us is not so much on the validity of section 3 as on the validity of section 4. Section 4 consists of two sub-sections and reads as follows: "(1) Notwithstanding any judgment, decree or order of any Court, Tribunal or other authority, all taxe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation has been conferred on section 4 and it is common ground that section 4 can be considered to have come into force only on the date on which the Kerala Sales Tax (Levy and Validation) Act, 1965, came into force, namely, 27th September, 1965. It is also common ground that what has been validated by section 4 is only taxes levied, assessed or collected or purported to have been levied, assessed or collected under the General Sales Tax Act, 1125, during the period from 1st April, 1958 to 31st March, 1963, in respect of the purchase of copra or cashew-nut kernel during that period. 7.. The contention of the petitioners is that section 4 is ultra vires of the Constitution. It is submitted that section 4 violates Article 14 of the Constitut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ales Tax Act, 1125, during the period from 1st April, 1958 to 31st March, 1963, in respect of the purchase of copra or cashew-nut kernel during the said period to the extent, and only to the extent, of the legal foundation provided by section 3 with effect from 1st April, 1958. 10.. In other words, sections 3 and 4 have to be read together; and an assessment, whether it be a fresh assessment made under section 3 or an old assessment validated under section 4, will be justified only to the extent of the liability created by section 3 with effect from 1st April, 1958. An example will make the position clear. The second proviso to sub-section (1) of section 3 says that no tax shall be levied under that section on copra or cashew-nut kernel i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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