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TMI Blog2010 (9) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... ground. In view of the above, we allow the writ petition and quash impugned notification to the extent the same is operative for the period prior to issuance X X X X Extracts X X X X X X X X Extracts X X X X ..... rence to article 14 of the Constitution. 8. Before considering the said question, it will be proper to notice the relevant provision which has been relied upon, i.e., section 60(1) of the Act: "The State Government may subject to the provisions of subsection (3) and subject to the condition of previous publication by uploading on the website www.haryanatax.com under the head 'legal notices', make rules by notification in the official Gazette for carrying out the purposes of this Act and may give them prospective or retrospective effect." 9. Even though power of Legislature under article 245 of the Constitution is plenary which also includes power to make law with retrospective effect and even subordinate legislation can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any statutory provision with retrospective effect cannot be doubted. Any retrospective amendment to be valid must, however, be reasonable and not arbitrary and must not be violative of any of the fundamental rights guaranteed under the Constitution. The mere fact that any statutory provision has been amended with retrospective effect does not by itself make the amendment unreasonable. Unreasonableness or arbitrariness of any such amendment with retrospective effect has necessarily to be judged on the merits of the amendment in the light of the facts and circumstances under which such amendment is made. In considering the question as to whether the legislative power to amend a provision with retrospective operation has been reasonably exerc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 16 of the Constitution to the extent it operates retrospectively. 12. Applying the above principles, it is seen that by the impugned notification the rates of tax have been revised which has been given effect for a period of nine months prior to the date of notification. In reply, there is no justification as to what was the relevance of the earlier date for fixing higher rate of tax. Conferment of exercise of power of giving retrospective effect in a subordinate legislation can be justified only if it is reasonable. Retrospective legislation may be justified if a provision is clarificatory or provision is for validating an earlier levy which may have been struck down or for any such purpose which may be permissible. In absence thereof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both in and outside Bihar exceeded ₹ 10,000 shall be liable to pay tax under this Act on sales which have taken place in Bihar on and from the date of such commencement.'"
14. In the present case, the position is different. The retroactivity is not intended to give effect to intention of Legislature already manifested. No other reason for giving retrospective effect has been shown except that there is a power to make a rule retrospectively. Mere existence of power cannot justify exercise of power without any reasonable ground.
15. In view of the above, we allow the writ petition and quash impugned notification to the extent the same is operative for the period prior to issuance. X X X X Extracts X X X X X X X X Extracts X X X X
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