Retrospective validating law allows revision to uphold sales tax assessment on inter-State sales excluded under earlier law.

A revisional court exercising appellate-like powers may apply a subsequent retrospective validating enactment to assessments that had earlier been treated as invalid under the then-existing constitutional bar. The disputed turnover concerned inter-State sales of cotton delivered within the State for consumption, which had been excluded from tax under Article 286(2). Once the validating law removed that ban retrospectively for the relevant period, the earlier appellate view became inconsistent with the law deemed to have been in force on the material date. The pending revision was therefore decided by reference to the retrospectively altered law, and the sales tax assessment was upheld.

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Issues: Whether a revisional court could apply a subsequent retrospective validating enactment to uphold sales tax assessments on inter-State sales that had been excluded by the appellate tribunal under the then-existing law.

Analysis: The turnover in dispute represented sales of cotton purchased outside the State but delivered within the State for consumption, which had initially been treated as outside the tax net by reference to the constitutional ban under Article 286(2). A later validating enactment removed that ban retrospectively for the relevant period and operated upon assessments that had earlier been held invalid. The revisional jurisdiction under section 12-B was treated as appellate in character for this purpose, enabling the High Court to take account of the law as retrospectively altered. Once the validating provision is given effect, the earlier appellate order becomes inconsistent with the law deemed to have been in force on the relevant date.

Conclusion: The retrospective validating enactment applied to the pending revision, the exclusion of the disputed turnover was erroneous in law, and the assessment was upheld in favour of the Revenue.

Ratio Decidendi: A revisional court exercising appellate-like powers may apply a retrospective validating statute, and an order consistent with the law as it stood before such enactment can be corrected if the later law deems the assessment lawful from the earlier date.

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