Retrospective withdrawal of tax exemption and best judgment assessment upheld where notice was given and not availed.

A clear legislative deeming provision can validly withdraw a sales tax exemption retrospectively, and the assessee cannot retain the earlier exemption where the amending Act expressly states that it is deemed to have come into force from an earlier date. On the assessment issue, notices calling for appearance and accounts were issued, but the assessee did not avail the opportunity and remained absent; the Assessing Authority was therefore entitled to proceed ex parte by best judgment. No writ interference was warranted because adequate notice and opportunity had been afforded. The challenge to the assessment failed in full.

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Issues: (i) Whether the amendment withdrawing the sales tax exemption operated retrospectively from 1 April 1959 and validly removed the assessee's exemption; (ii) Whether the best judgment assessment was invalid for want of notice and denial of opportunity.

Issue (i): Whether the amendment withdrawing the sales tax exemption operated retrospectively from 1 April 1959 and validly removed the assessee's exemption.

Analysis: The amending Act expressly provided that it shall be deemed to have come into force on 1 April 1959. The effect of this express deeming provision was to withdraw the exemption earlier available under the relevant schedule item. A Legislature competent to grant an exemption is equally competent to withdraw it, and where the statute clearly gives retrospective operation, the exemption cannot survive for the earlier period.

Conclusion: The retrospective withdrawal of exemption was valid and operated against the assessee.

Issue (ii): Whether the best judgment assessment was invalid for want of notice and denial of opportunity.

Analysis: The record showed that notices were issued requiring appearance and production of accounts for the relevant years, but the assessee chose not to appear and instead asserted non-liability. In these circumstances, the Assessing Authority proceeded ex parte. Since ample opportunity had been afforded and not availed of, no ground was made out for interference in writ jurisdiction.

Conclusion: The best judgment assessment was not vitiated for want of notice or denial of opportunity.

Final Conclusion: The assessee was not entitled to relief, and the challenge to the assessment failed in entirety.

Ratio Decidendi: A clear legislative deeming provision may validly withdraw a tax exemption retrospectively, and an ex parte best judgment assessment will not be interfered with in writ jurisdiction where adequate notice and opportunity were given but not availed of.

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