Retrospective amendment cannot revive a tax demand contrary to a final judgment without express validating language.

A retrospective amendment to subordinate legislation cannot sustain a tax demand that conflicts with a binding judicial determination unless it contains an express validating provision. The assessee had been recognised as entitled to pay entertainments tax at the reduced rate from the date seating capacity was reduced, and that earlier decision fixed the liability for the relevant period. Because the later retrospective amendment to rule 27(10) did not validate recovery at the higher rate or authorise disregard of the final judgment, the demand notice based on the earlier rate was held illegal and invalid and was quashed.

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Issues: Whether a demand notice issued at the earlier higher rate of entertainment tax could be sustained after the Court had already held that the assessee was entitled to pay tax at the reduced rate from the date of reduction in seating capacity, despite the retrospective amendment of the relevant rule.

Analysis: The assessee had obtained a reduction in seating capacity and, on that basis, a reduced weekly tax liability under section 5 of the Andhra Pradesh Entertainments Tax Act, 1939 was recognised. The Court had earlier decided that the reduced rate was payable from the date of reduction till the end of the financial year. A later retrospective amendment to rule 27(10) of the A.P. Entertainments Tax Rules, 1939 did not contain any validating provision authorising a demand contrary to that binding decision. A retrospective amendment, by itself, could not permit the authorities to disregard the final judgment or revive a demand that the Court had already held to be incorrect.

Conclusion: The impugned demand notice was illegal and invalid and was quashed; the writ petition was allowed.

Ratio Decidendi: A retrospective amendment to subordinate legislation cannot authorise recovery contrary to a final judicial decision unless the amendment expressly validates such recovery.

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