HUGS ADVERTISING INDUSTRIES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) IN all these petitions, the main challenge is to the validity of the Tamil Nadu General Sales Tax (Fourth Amendment) Act, 1999 (Act 14 of 1999). There are some minor differences in the prayers sought for in the various petitions. We therefore, first refer to the nature of the plea of the petitioners. In O.P. Nos. 1157, 1158 of 1999 and 1336 to 1339 of 1999, the prayer is to declare Tamil Nadu Act 14 of 1999 as unconstitutional and ultra vires. These petitions have been filed by outdoor advertising agencies and they have also made averments relating to the exigibility to tax under Section 3A of the Tamil Nadu General Sales Tax Act, 1959. O.P. No. 1270 of 1999 mainly questions the second proviso to Section 31 of the Tamil Nadu General Sales Tax Act and the validity of Tamil Nadu Act 14 of 1999. They are chartering ships to Poompuhar Shipping Agency. O.P. No. 1245 of 1999 seeks a direction to the respondents not to insist upon 25 per cent of admitted tax before entertaining an appeal under Section 31 of the Tamil Nadu General Sales Tax Act. O.P. Nos. 1325 to 1328 of 1999 relate to assessment years 1993 -94 to 1996 -97 and they seek to quash orders passed by the appellate authority refusing to waive the payment of 25 per cent of admitted tax under Tamil Nadu Act 14 of 1999 before entertaining the appeals. The correctness of Section 3A of the Tamil Nadu General Sales Tax Act has already been decided by this Special Tribunal in favour of the Revenue and the allegations are nothing but repetitions and no arguments were in fact advanced in this regard. Similarly, no arguments were advanced with reference to the second proviso of Section 31 of the Tamil Nadu General Sales Tax Act regarding satisfactory proof of payment of the tax admitted by the appellant/assessee before filing an appeal. Therefore, the one and only issue in all these petitions relates to the validity of Tamil Nadu Act 14 of 1999. Even here it has to be mentioned that at the time of arguments, no serious attempts were made to invalidate the amendment because there are a number of decisions upholding the imposition of condition for entertaining appeals. The main arguments centred over the issue of retrospective operation of the Act and the transaction in respect of Act will apply.

(2.) THE Tamil Nadu Act 14 of 1999 which comes into effect from June 14, 1999 has introduced amendments to Sections 31, 31 -A and 36 of the Tamil Nadu General Sales Tax Act, 1959. In Sub -section (1) of the second proviso to Section 31 the following words are added :

(3.) IT is well -established that the right to appeal is a matter of substantive right and not merely a matter of procedure. This right of appeal from the decision of an inferior to a superior Tribunal becomes vested in a party when the Us commences. This pre -existing right of appeal cannot be destroyed by an amendment, it is not retrospective in nature by express words or necessary intendments. The question is as to when such a preexisting right of appeal becomes vested in a party ?