9911796707
TMI Blog1995 (7) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... cent with retrospective effect. In the notification, it was stated "the variation hereby made shall be deemed to have come into force on and from August 25, 1980". That notification was issued on September 15, 1983. The variation in the rate with retrospective effect having thus been effected by a notification, which was issued subsequent to the assessments, the petitioner sought rectification of the assessment order in so far as it had adopted the rate of tax at 15 per cent instead of 10 per cent. The petitioner's request for that relief was made to the Assistant Commissioner on March 8, 1985 within five years from the date of the assessment orders. Though in that letter it was stated that revision of the assessment was sought, the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n shall apply to an order of rectification made under this section as they apply to the order in respect of which such order of rectification has been made." 3. The petitioner's case is that the error in the assessment was apparent on the face of the record as, though the rate of 15 per cent as the rate of sales tax on the sale of one and two band radios, as on the date of the assessment was the rate which had been prescribed in the statute, by reason of the subsequent amendment with retrospective effect, that rate was no longer the applicable rate and in its place the lesser rate of 10 per cent prescribed in the statute with retrospective effect had necessarily to be adopted in computing the amount of sales tax in law payable by the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the court held that when a retrospective amendment is effected, then for all legal purposes, the amended provision is deemed to have been included with effect from the date from which retrospective effect is given. The court further held that the principle of the finality of orders or the sanctity of the existing rights cannot be effectively invoked when such retrospective amendment is carried out to the law, because the action taken earlier, on the basis of the erroneous law as it then prevailed could not be said to be final, in the literal sense of the word. 7.. Learned counsel also referred to the judgment of the Supreme Court in the case of Raja Shatrunjit v. Mohammad Azmat Azim Khan AIR 1971 SC 1474, wherein the court held that an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tute and he is authorised to levy tax at the rate stipulated in the Act and as permitted by law. When the Legislature through its delegate itself chose to retrospectively alter the rate, and did not while so altering direct that assessment already made should continue to be effective, notwithstanding the altered rate which was given retrospective effect, it must be held that there is clearly an error which was apparent on the record in so far as the assessing officer had adopted a rate, which in law was not the rate to be adopted. 10. The following observations of the Supreme Court in the case of Venkatachalam v. Bombay Dyeing and Mfg. Co. Ltd. [1958] 34 ITR 143; AIR 1958 SC 875 which was a case under section 35 of the Income-tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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