Retrospective tax revision limits pre-amendment licence fee levy to the original ceiling, not the enhanced rate.

For the period before amendment of section 6 of the Mysore Sales Tax Act, 1957, the licence fee levied as if it were a tax remained subject to the original ceiling of Rs. 2,000. The amending Act introduced an enhanced maximum and section 43(3) provided that, where the tax rate is revised during an accounting period, turnover before the revision is taxed at the original rate and turnover after the revision at the revised rate. On that basis, the higher post-amendment limit could not be applied retrospectively to turnover earned before the amendment took effect.

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Issues: Whether, for the period prior to the amendment of section 6 of the Mysore Sales Tax Act, 1957, the licence fee leviable as if it were a tax was restricted by the maximum limit of Rs. 2,000, despite the enhanced rate introduced by the amending Act and the newly inserted section 43(3).

Analysis: The accounting period covered dates before and after the amendment, but the amendment expressly provided that where the rate of tax is revised, the turnover up to the date of revision is liable at the original rate and the turnover thereafter at the revised rate. Since the licence fee under section 6 was levied as if it were a tax, the pre-amendment period had to be governed by the original provision, including its ceiling of Rs. 2,000. The enhanced maximum introduced by the amendment could not be applied retrospectively to the earlier turnover.

Conclusion: The levy for the period up to 30th September, 1962 was limited to Rs. 2,000, and the assessment demanding Rs. 2,974.50 for that period was erroneous.

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