Rule-making authority limits defeated a permit requirement, and later validation did not apply retrospectively to the earlier period.

Rule 25 of the Madras General Sales Tax Rules, 1959, which required permits for travelling salesmen or representatives, was beyond the rule-making power under section 53 of the Madras General Sales Tax Act, 1959. Section 53(2) did not expressly authorise such a permit requirement, and the general power in section 53(1) was insufficient to support it. Section 21-A, introduced later, gave the rule statutory footing only from 1 October 1960 and did not operate retrospectively. The rule therefore remained invalid for the earlier period ending 31 March 1960.

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Issues: Whether rule 25 of the Madras General Sales Tax Rules, 1959 was beyond the rule-making power conferred by section 53 of the Madras General Sales Tax Act, 1959, and whether section 21-A, introduced later, validated the rule for the earlier period.

Analysis: Section 53(2) did not confer an express power to frame a rule requiring permits for travelling salesmen or representatives. Although section 53(1) empowered the Government to make rules to carry out the purposes of the Act, that general power was held insufficient to sustain rule 25. Section 21-A was inserted later and was treated as having the effect of giving statutory footing to the rule, but there was nothing in its language to show retrospective operation. Since the provision came into force only from 1 October 1960, it did not apply to the earlier period ending 31 March 1960.

Conclusion: Rule 25 was invalid for want of rule-making authority and could not be upheld by section 21-A for the relevant earlier period.

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