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TMI Blog1986 (9) TMI 395X X X X Extracts X X X X X X X X Extracts X X X X ..... by assessment order dated October 3, 1983, assessed the petitioner for Rs. 20,800 and taxed it with Rs. 832 for the period from February 3, 1983 to March 31, 1983, on the basis of the Forty-sixth Amendment of the Constitution. By this Constitution amendment article 366 was amended and a new definition of the word "sale" was inserted. The definition as inserted by the Forty-sixth Amendment of the Constitution reads as follows: "(29-A) 'tax on the sale or purchase of goods' includes (a) ........................ (b) ........................ (c) ........................ (d) ........................ (e) ........................ (f) a tax on the supply, by way of or as part of any service or in any other manner whatsoever, of goods, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l visitors in restaurant was not taxable as a sale under the Bengal Finance (Sales Tax) Act, 1941 (as applied to the Union Territory of Delhi). This was held to be so whether a charge was imposed for the meal as a whole or according to dishes separately ordered. As a result of the aforesaid decision of the Supreme Court the Constitution (Forty-sixth Amendment) Act, 1982 was enacted. The Statement of Objects and Reasons attached to the Amendment Act as stated broadly that the expression "sale of goods" should have been interpreted broadly but it had been interpreted narrowly and the words "sale of goods" in the Seventh Schedule have been construed as having the same meaning as in the Sale of Goods Act, 1930. In the Statement of Objects and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tels Ltd. v. Commissioner of Sales Tax reported in [1984] 55 STC 68. Honourable B.N. Sapru, J., decided a number of revisions filed under section 11 of the U.P. Sales Tax Act by the aforesaid judgment. What is material about this decision is that they were in respect of the assessment years 1975-76, 1976-77 and 1977-78. Since it is not necessary for us to recite the fact of that decision excepting to point out the years in respect of which the controversy had arisen in Northern India Hotels Ltd. [1984] 55 STC 68 (All.), we do not wish to narrate the same in this judgment. Honourable Sapru, J., held: "(i) Scope of the State's legislative competence under entry 54 of List II of the Seventh Schedule has been widened by the addition of clause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin its ambit, inter alia, the tax on the transfer of property in goods involved in the execution of a works contract, the transfer of the right to use any goods for any purpose, the delivery of goods on hirepurchase or any system of payment by instalments, the supply of any food or drink, etc., by way of, or as part of, service or in any other manner. The State Government has since decided to levy tax on transactions of the above nature. It has, therefore, become necessary to amend the definition of the word 'sale' with retrospective effect from February 2, 1983, the date of commencement of the Constitution (Forty-sixth Amendment) Act, 1982, and to insert the definition of the term 'works contract' in the Uttar Pradesh Sales Tax Act, 1948. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e referred that case for the papers being placed before Honourable the Acting Chief Justice for constituting a Division Bench. Before us the simple controversy is whether the legislature could enact the U.P. Act 25 of 1985 which was published in the U.P. Gazette dated 13th September, 1985, with retrospective effect to be applicable with effect from 2nd February, 1983. It is the date of commencement of the Constitution (Forty-sixth Amendment) Act, 1982. It is said that the power to legislate carries with it the power to legislate retrospectively as much as prospectively. This power of legislation with retrospective effect has been upheld with regard to tax laws as well. In Khyerbari Tea Company Ltd. v. State of Assam AIR 1964 SC 925 it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee Tata Iron and Steel Co. Ltd. v. State of Bihar [1958] 9 STC 267 (SC); [1958] SCR 1355; AIR 1958 SC 452, J.K. Jute Mills Co. Ltd. v. State of Uttar Pradesh [1961] 12 STC 429 (SC); [1962] 2 SCR 1; AIR 1961 SC 1534 and S. Kodar v. State of Kerala [1974] 34 STC 73 (SC); [1975] 1 SCR 121; AIR 1974 SC 2272. The contention based on article 19(1)(g) cannot therefore be sustained." In Empire Industries Ltd. v. Union of India [1987] 64 STC 42 (SC); (1985) 3 SCC 314 at 341 it was observed by the Honourable Supreme Court that tax may be imposed retrospectively. Sri Vinod Misra, learned counsel appearing for the petitioner, had strongly relied upon the decision of this Court in Northern India Hotels Limited [1984] 55 STC 68, Northern India Cate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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