Retrospective tax forfeiture upheld where the amended sales tax law was found not to violate article 20(1).

Retrospective tax legislation providing for forfeiture of amounts collected as tax was examined against article 20(1) of the Constitution of India. The only controversy was whether Maharashtra Act No. 21 of 1962, operating retrospectively from 1 January 1960, offended the constitutional prohibition in article 20(1). The point was treated as already concluded by an earlier decision holding that the retrospective amendment did not violate article 20(1). The forfeiture under section 46(2) of the Bombay Sales Tax Act, 1959 was therefore upheld as legal, and the question referred was answered in the affirmative.

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Issues: Whether forfeiture of the amount collected as tax under section 46(2) of the Bombay Sales Tax Act, 1959, by virtue of Maharashtra Act No. 21 of 1962 operating retrospectively from 1 January 1960, was valid in the face of article 20(1) of the Constitution of India.

Analysis: The only controversy was whether the retrospective operation given to the amending Act offended article 20(1). The point was treated as concluded by an earlier decision holding that retrospective effect of the amendment did not violate article 20(1). No other issue was left for consideration.

Conclusion: The forfeiture was held to be legal and the question referred was answered in the affirmative.

Final Conclusion: The legality of the forfeiture under the retrospective amendment was upheld.

Ratio Decidendi: Retrospective tax legislation providing for forfeiture of amounts collected as tax does not, by itself, violate article 20(1) of the Constitution of India.

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