Retrospective sales tax on works contracts upheld, with recovery allowed from the Government department under prior directions.

A retrospective amendment to section 3A of the Tripura Sales Tax Act, 1976 left the dealer's assessed sales tax liability intact, because liability does not depend on whether the tax was actually collected from the purchaser. In works contract transactions executed for a Government department, however, the dealer was entitled to rely on earlier binding directions permitting recovery of the tax from the departmental purchaser. The challenge to the retrospective amendment was not pursued, as the provision had already been upheld, and the matter was treated as governed by those prior directions.

---

---

Issues: Whether the petitioner was liable to bear and pay the additional sales tax arising from the retrospective amendment to section 3A of the Tripura Sales Tax Act, 1976, and whether the petitioner could collect the tax from the concerned Government department in respect of works contract transactions.

Analysis: The challenge to the validity of the retrospective amendment was not pressed, as the provision had already been upheld. The dispute was confined to the consequence of retrospective levy on works contract turnover executed for a Government department. The governing principle applied was that a dealer's liability to pay sales tax does not depend on whether the tax was in fact collected from the purchaser, but where the enhanced levy arises by retrospective operation and the transactions were with a Government department, the dealer may not be precluded from recovering the tax in accordance with the directions previously issued in connected matters. The Court treated the present matter as covered by those earlier directions.

Conclusion: The petitioner remained liable to pay the tax as assessed, but was entitled to the benefit of the earlier directions permitting collection of the tax from the concerned department.

Final Conclusion: The writ petition was disposed of by applying the earlier binding directions on retrospective works contract taxation, leaving the assessment liability intact while allowing the petitioner to pursue recovery from the departmental purchaser.

Ratio Decidendi: Liability to pay sales tax under a retrospective amendment is not avoided by non-collection from the purchaser, but equitable directions may permit recovery from a Government department where the transaction was with such department.

---