Home Case Index All Cases VAT and Sales Tax VAT and Sales Tax + SC VAT and Sales Tax - 2014 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (4) TMI 64 - SC - VAT and Sales TaxEnvironment and health cess - Retrospective applicability of the notification - Delegation power - Whether the amended notification has been issued in consonance with the power given under the Act - Constitutional validity of Chapter VII of the Rajasthan Finance Act, 2008 - Words “time to time” u/s 16 interpretated - Held That:- Notification as far as it covers the period prior to the date of publication of the notification in the official Gazette is really a transgression of the statutory postulate – There can be no cavil that the legislature has the authority to pass a law both retrospectively and prospectively within the constitutional parameters. There is no doubt that unlike legislation made by sovereign legislature, subordinate legislation made by a delegate cannot have retrospective effect unless the rule-making power in the concerned statute expressly or by necessary implication confers power in this behalf - The Court opined that the same did not affect the vested rights as nothing had been done earlier and hence, no right had vested in the citizens - We may state that the said enactment was treated to be valid as it did not invite the wrath of Article 14 of the Constitution - We are really not testing the retrospective applicability of the law made by the legislature but a notification issued by the State Government in exercise of power conferred under a statutory provision. Needless to say, there is a sea of difference between the two - The aforesaid authority is of no assistance to the appellant-State because the controversy that has emanated in that case is altogether a different one - To put it differently, the proposition laid down in the aforesaid authority does not buttress the submission sought to be urged - In fact, it is farther away from the “North Pole”. Words “time to time” u/s 16 of the Act - We really cannot discern from the language employed in the said provision that because of the use of the words “time to time” a notification can be issued imposing a rate of tax with retrospective effect or apply the notification retrospectively - A notification can only be issued prospectively, and we are inclined to think so as legislature has deliberately used the words “from time to time”. The use of the said words in the Section 16 of the Act cannot be said to have conferred the jurisdiction on the State Government or delegate to issue a notification in respect of the rate with retrospective effect - Such an interpretation does not flow from the statute which is the source of power - Thus, the notification as far as it covers the period prior to the date of publication of the notification in the official Gazette is really a transgression of the statutory postulate – Thus, we find that the view expressed by the High court on this score is absolutely flawless and we concur with the same - The lis in these appeals fundamentally pertain to the retrospective applicability of the notification issued by the State Government as regards the rate of cess on the major mineral, i.e. Rock Phosphate - The appeals, being devoid of merit, stand dismissed – Decided against revenue.
|