Retrospective entry tax amendment upheld as valid; compensatory levy meant President's assent was not required.

The retrospective deletion of section 28 of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 was treated as valid because the entry tax levy under Chapter II-A was held compensatory in nature, so the amendment did not require the President's assent. The earlier view that non-dealers were not liable under section 28 was displaced by the later Division Bench ruling, and the constitutional objection accepted by the single Judge could not survive. The challenge by importers to the entry tax levy was not accepted, and the writ appeals succeeded in favour of the Revenue.

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Issues: Whether the amendment deleting section 28 of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 with retrospective effect was invalid for want of the President's assent, and whether the entry tax levy under Chapter II-A could be sustained against non-dealers/importers.

Analysis: The earlier view that non-dealers were not liable under section 28 was displaced by the subsequent Division Bench ruling holding that the entry tax is compensatory in nature. On that basis, the levy did not require the President's assent for the impugned amendment, and the constitutional objection accepted by the learned single Judge could not survive. The retrospective deletion of section 28 was therefore treated as valid, and the challenge to the levy by importers was not accepted.

Conclusion: The challenge to the amendment failed and the writ appeals were allowed in favour of the Revenue.

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