Retrospective validating amendment revived sales tax assessments and allowed recovery of refunded tax without further rectification.

A retrospective validating amendment under the Central Sales Tax law removed the basis on which earlier assessments had been quashed, with the result that the original assessment orders were treated as valid and effective despite prior court orders. The validating provision was read broadly enough to cover appellate and revisional orders passed on the same footing, so those orders also lost effect and the original assessments stood revived. Once the assessments were validated, refund-based relief ceased to be available and the revenue could recover the refunded tax under the existing machinery of the Mysore Sales Tax Act and the Central Sales Tax Act without any further rectification or revision of the assessment orders.

---

---

Issues: (i) Whether section 9 of the Central Sales Tax (Amendment) Act, 1969 renders ineffective the High Court's order quashing the assessments and reviving the original assessment orders; (ii) whether section 9 also nullifies appellate or revisional orders passed following the earlier Supreme Court decision and revives the original assessments; and (iii) whether recovery of refunded tax can be made under the Mysore Sales Tax Act, 1957 read with the Central Sales Tax Act, 1956 without any further rectification or revision of the assessment orders.

Issue (i): Whether section 9 of the Central Sales Tax (Amendment) Act, 1969 renders ineffective the High Court's order quashing the assessments and reviving the original assessment orders.

Analysis: The amendment inserted section 6(1-A) with retrospective effect, thereby removing the very basis on which the earlier judgments had set aside the assessments. Section 9 validates all assessments made before the relevant date notwithstanding any judgment, decree or order, and declares them to be valid and effective as if made under the amended Act. The provision also deems all related acts and proceedings to have been done in accordance with law and bars refund-based relief against such validated assessments.

Conclusion: The original assessment orders stood revived and became valid and effective under the amended law, and the High Court's earlier quashing order was rendered ineffective.

Issue (ii): Whether section 9 also nullifies appellate or revisional orders passed following the earlier Supreme Court decision and revives the original assessments.

Analysis: The expression "court or other authority" in section 9 is broad enough to include appellate and revisional authorities functioning under the sales tax law. Once the basis of the earlier invalidation was removed by the retrospective amendment, any appellate or revisional order setting aside the assessments on the same ground lost effect. The validating provision operates on the assessments themselves and makes them effective as if they had always been made under the amended statute.

Conclusion: Section 9 rendered such appellate or revisional orders ineffective and revived the original assessment orders.

Issue (iii): Whether recovery of refunded tax can be made under the Mysore Sales Tax Act, 1957 read with the Central Sales Tax Act, 1956 without any further rectification or revision of the assessment orders.

Analysis: The retrospective validation made the original demands enforceable again. Since the tax had been refunded only because the earlier assessments were struck down, the continued retention of the refunded amount became unlawful once the assessments were validated. As the amendment did not alter the rate of tax but only removed the basis of exemption or non-liability, no rectification or recalculation machinery was required before recovery.

Conclusion: Recovery could proceed under the existing machinery provisions without any further rectification or revision of the assessment orders.

Final Conclusion: The validating amendment upheld the original inter-State sales tax assessments, defeated the challenge to the refund notices, and left the revenue free to recover the refunded amounts under the existing statutory machinery.

Ratio Decidendi: A retrospective validating amendment that removes the legal basis of an earlier decision can, by deeming fiction and non obstante language, revive and validate prior assessments and related recovery action without the need for a separate rectification of the assessment order.

---