Legislative competence over transferred territories upheld for amending and extending an existing taxing law.

An Andhra Pradesh Legislature competent over transferred territories may amend and extend an existing law that continued in force there under the saving provisions of the Andhra State Act and the States Reorganisation Act. The Constitution does not require reenactment in full, and legislation by incorporation or reference is permissible. On that basis, the adaptation and extension of the Madras Sales of Motor Spirit Taxation Act, 1939 was treated as a valid exercise of legislative power and not an impermissible abdication or violation of Article 246(3). The challenge to the taxing statute therefore failed, and the levy provisions were upheld.

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Issues: Whether the Andhra Pradesh Legislature was competent to amend and extend the Madras Sales of Motor Spirit Taxation Act, 1939 to the transferred territories, and whether such adaptation and extension violated the constitutional scheme of legislative power.

Analysis: The existing law continued in force in the areas transferred to the new State by virtue of the relevant saving provisions in the Andhra State Act and the corresponding provisions of the States Re-organisation Act. Once such law was treated as part of the law of the new State, the legislature having authority over that area could amend or repeal it. The Constitution does not prescribe a single form of legislation, and a legislature may enact by incorporation or reference rather than by re-enacting the entire statute. The impugned measure was therefore not an impermissible abdication of legislative power and did not offend Article 246(3) of the Constitution of India.

Conclusion: The Act was held to be a valid exercise of legislative power and the challenge to its constitutional validity failed.

Final Conclusion: The petitions challenging the validity of the taxing statute were rejected and the levy provisions were upheld.

Ratio Decidendi: A legislature competent over a territory may adopt, amend, and extend an existing law that continues in force there, and such legislative action is valid so long as it falls within its constitutional field of power and does not violate any express restriction.

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