Retrospective withdrawal of sales tax exemption invalid where delegated power did not expressly authorise past effect.

A delegate cannot withdraw a sales tax exemption with retrospective effect unless the parent statute expressly confers that power. The Court held that the State Government had no authority under section 8(5) of the Central Sales Tax Act, 1956, to rescind the earlier exemption notification from an earlier date, because retrospective operation cannot be assumed for delegated legislation. The impugned notification was therefore invalid to the extent it sought past effect and operated only from the date of publication.

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Issues: Whether the State Government's notification rescinding an earlier sales tax exemption notification could validly operate retrospectively from 1 April 1973 in the absence of express statutory authority.

Analysis: The only substantive question was whether a delegate could issue a notification under section 8(5) of the Central Sales Tax Act, 1956, so as to withdraw an exemption with retrospective effect. The Court held that the power to legislate or act with retrospective effect cannot be exercised by a delegate unless the parent statute specifically confers that power. No such authority was shown to exist in favour of the State Government. The earlier exemption had governed the field, and the impugned notification could not therefore be given effect from a date prior to its publication.

Conclusion: The retrospective operation of the notification was invalid, and it took effect only from the date of its publication.

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