Retrospective tax validation governs brick turnover, with the amended law applied to the assessment year in question.

A retrospective validation amendment to the U.P. Sales Tax Act controlled the tax treatment of brick turnover for the 1964-65 assessment year, because the amendment substituted and validated the earlier notification issued under section 3-A. The High Court held that the reference was broad enough to apply the amended law and no fresh factual inquiry was needed. In a tax reference, where the statute is validly amended with retrospective effect, the court must apply that retrospectively validated law to the transaction in question. On that basis, brick turnover was taxable at 7 per cent rather than 2 per cent.

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Issues: Whether, in view of the U.P. Sales Tax (Amendment and Validation) Act, 1971, the turnover of bricks for the assessment year 1964-65 was taxable at 7 per cent or 2 per cent.

Analysis: The retrospective amendment and validation provisions substituted and validated the earlier notification issued under section 3-A of the U.P. Sales Tax Act. The question referred was broad enough to permit consideration of the amended law, and no fresh investigation of facts was required. In a tax reference, the law in force as validly amended with retrospective operation governs the transaction, and the High Court may give effect to that legislative intent while answering the reference.

Conclusion: The turnover of bricks for the assessment year 1964-65 was liable to tax at 7 per cent and not at 2 per cent.

Final Conclusion: The retrospective validation statute governed the assessment, and the reference was answered in favour of the taxing authority.

Ratio Decidendi: Where a taxing statute is amended with retrospective effect and the reference can be answered without fresh factual inquiry, the court must apply the law as retrospectively validated to the transaction in question.

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