TMI Blog1975 (11) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... on the sale of water-pumps was retrospectively enhanced from 2 per cent to 6 per cent. Consequently, the Sales Tax Officer issued a notice to the petitioner under section 21 of the U.P. Sales Tax Act calling upon the petitioner to show cause why assessment be not reopened and tax at the rate of 6 per cent be charged for the previous years also which were covered by the impugned law. The petitioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the commercial sense. We are not impressed with this argument. It is not disputed by Sri R.R. Agarwal that prospective levy of tax at the rate of 6 per cent on water-pumps is in no way unreasonable or extortionate. That being the position mere retrospective application of the law would not make the tax extortionate and confiscatory. The second point was that there are limitations on the legi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no legal limitation on it as to the date from which it would affect retrospectively the right of the citizens. The third point was that since appeals are pending against the original assessments made at the rate of 2 per cent it would be the appellate authority under section 9(3) of the Act which will enhance the assessment in accordance with the amended law if applicable and the Sales T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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