PREMIER ENTERPRISES SECUNDERABAD Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) In these five appeals, the question raised pertains to the validity of Act 25 of 1988 passed by the Andhra Pradesh State Legislature which came into force on 6-9-1988 having retrospective effect from 8-7-1983.

(2.) Though several contentions had been raised before the High Court and in memorandum of appeal, ultimately three points were urged for our consideration. Firstly, that the retrospective effect given to the enactment in question from 8-7-1983 results in oppressive and unreasonable levy spreading over a long period of about five years. Secondly, that the levy in question is discriminatory so far as the local goods and imported goods are concerned. Thirdly and lastly, on the interpretation of the provision as to what is the rate of tax that is attracted in respect of a particular transaction. On all the three points the High Court decided against the appellants.

(3.) The High Court in our view rightly held that the Legislature has necessary competence to make retrospective levy of tax. Inability to realise the tax is not a ground to hold such levy to be unreasonable. In finding out whether the levy with retrospective effect from 8-7-1983 was reasonable or not, the High Court noticed the legislative history and came to the conclusion that the action taken was remedial in nature and, therefore, is neither oppressive nor unreasonable and the period for which the tax was levied for similar reason was stated to be proper. We hardly find any good reason to interfere with the order made by the High Court.