Retrospective validating amendment bars reopening of a completed assessment despite an invalid sales tax notification.

A notification issued under the Central Sales Tax Act could not sustain assessments when it was inconsistent with the statutory scheme and was treated as invalid in law. However, the validating provision in the Central Sales Tax (Amendment) Act, 1972 operated retrospectively to deem earlier assessments and related acts valid and effective notwithstanding contrary judgments or orders. Because the 1971-72 assessment had been completed before the amendment commenced, reopening that completed assessment merely on the basis of the defective notification was barred. The reopening notice for 1971-72 was therefore quashed, while the completed assessment remained protected by the validating amendment.

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Issues: (i) Whether the notification issued under the Central Sales Tax Act could sustain the assessments when it was inconsistent with the statutory scheme; (ii) Whether the validating provision in the Central Sales Tax (Amendment) Act, 1972 barred reopening of the assessment for 1971-72 on the basis of the alleged infirmity in the notification.

Issue (i): Whether the notification issued under the Central Sales Tax Act could sustain the assessments when it was inconsistent with the statutory scheme.

Analysis: The notification had been relied upon while completing the assessments, but it was found to be contrary to the provisions governing the levy. The earlier decision adopted by the Court led to the conclusion that the notification could not be treated as valid in law.

Conclusion: The notification was invalid and could not, by itself, support the assessment.

Issue (ii): Whether the validating provision in the Central Sales Tax (Amendment) Act, 1972 barred reopening of the assessment for 1971-72 on the basis of the alleged infirmity in the notification.

Analysis: Section 15(1) of the validating amendment gave retrospective effect to assessments and related acts made before the commencement of the section, and deemed such acts to be valid and effective notwithstanding any contrary judgment or order. Since the assessment for 1971-72 had been completed before the amendment came into force, the Court held that the validating provision protected that assessment and prevented reopening merely because the notification was defective.

Conclusion: The notice for reopening the assessment for 1971-72 was not tenable in law and was quashed.

Final Conclusion: The challenge succeeded only to the extent of the reopening notice for 1971-72, while the validating amendment preserved the completed assessment from attack on the ground of the invalid notification.

Ratio Decidendi: A retrospective validating provision that deems prior assessments and related acts to be valid will bar reopening based solely on the invalidity of the notification or act on which the completed assessment rested.

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