Retrospective tax validation did not extinguish the vested right of appeal against an assessment order.

A validating tax amendment with retrospective effect did not, on its wording, extinguish a vested statutory right of appeal against an assessment order. The retrospective deeming fiction protected the levy, assessment, reassessment and collection made during the specified period from challenge to that extent, but it did not bar appellate scrutiny of an assessment based on allegedly erroneous findings. The appellate remedy under section 39 remained a substantive right, and the refusal to entertain the appeal as not maintainable was held unsustainable; the appeal had to be decided on merits.

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Issues: Whether the Haryana General Sales Tax (Second Amendment and Validation) Act, 1989 extinguished the petitioner's vested right of appeal against the assessment order and rendered the appeal before the appellate authority not maintainable.

Analysis: The validation provision was examined in the context of the retrospective insertion of clause (g) to the second proviso to section 6(2) of the Haryana General Sales Tax Act, 1973 and the accompanying deeming fiction protecting levy, assessment, reassessment and collection made during the specified period from being questioned. The appellate remedy under section 39 of the Act was held to remain a substantive statutory right, and the amending/validation provision was construed as barring challenges to the retrospective levy itself, not as abolishing the right of appeal against an assessment made on allegedly erroneous findings. A construction that would foreclose appellate scrutiny of grounds beyond the retrospective validation was held impermissible, particularly where it would permit levy of tax without authority of law.

Conclusion: The validation amendment did not take away the petitioner's right of appeal, and the appellate authority's refusal to entertain the appeal as not maintainable was ; the appeal had to be decided on merits.

Ratio Decidendi: A validating statute giving retrospective effect to a tax levy does not, unless clearly expressed, extinguish a vested statutory right of appeal against an assessment order; it only immunises the validated levy from challenge to the extent specifically provided.

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