Gazette publication governs tax notifications: enhanced wheat tax rate could not apply before publication

A taxing notification or Government Order that enhances liability takes effect only from the date of its publication in the Gazette, unless the statute expressly authorises retrospective operation. On that principle, the enhanced wheat tax rate fixed by G.O. Ms. No. 252 could not be applied to sales made between 1 April 1995 and 22 May 1995, because the order was published only on 23 May 1995. Tax collection at the enhanced rate for that period was therefore illegal and unauthorised.

---

---

Issues: Whether the enhanced rate of tax on wheat fixed by G.O. Ms. No. 252 could be applied to sales made between 1 April 1995 and 22 May 1995, before its publication in the Gazette.

Analysis: Wheat had been taxable at a reduced rate after the omission of additional tax and surcharge under the amendment to the sales tax law. The Government Order enhancing the rate to 3 per cent was dated 19 May 1995 but was published in the Gazette only on 23 May 1995. A notification or order affecting tax liability becomes effective only from the date of its publication, and it cannot operate retrospectively so as to burden transactions completed before publication. The earlier decision relied upon applied the same principle to a tax notification and held that retrospective rescission or enhancement without express authority is impermissible.

Conclusion: The enhanced rate could not be levied for the period from 1 April 1995 to 22 May 1995, and the collection of tax at that rate for that period was illegal and unauthorised.

Ratio Decidendi: A taxing notification enhancing liability takes effect only from the date of its publication in the Gazette unless the statute expressly authorises retrospective operation.

---