Retrospective fiscal legislation and concessional duty criteria were questioned for constitutional validity and alleged judicial encroachment

Retrospective effect was sought to be given to Notification No. 22 of 1982 under Section 52 of the Finance Act, 1982, raising the question whether duty liability on matches could be altered so as to affect claims arising from an earlier mandamus. The constitutionality of the retrospective scheme and the new concessional duty criteria was also questioned under Articles 14 and 19(1)(g), along with an objection that the measure encroached on judicial power. The Judges differed on the validity of Section 52 and the notification, and the matter was placed before a Bench of three Judges.

---

---

Issues: (i) Whether Section 52 of the Finance Act, 1982 could validly give retrospective effect to Notification No. 22 of 1982 so as to alter the duty liability on matches and affect claims arising from the earlier mandamus; (ii) whether the retrospective scheme and the new criteria for concessional duty offended Articles 14 and 19(1)(g) of the Constitution of India and amounted to legislative encroachment on judicial power.

Outcome: The opinions of the Judges differed on the validity of Section 52 and the retrospective notification, and the matters were directed to be placed before a Bench of three Judges.

---