Validation Act upheld to cure sales tax levy defects; factual scope under section 33 left for tax authorities.

The constitutional and statutory objections to the sales tax levy were rejected, as the Validation Act was held effective to cure the defect relied on against the levy and to sustain the assessment proceedings. The argument that the statute could not operate retrospectively was not accepted. The contention that the transactions fell outside the Explanation to section 33 turned on factual issues for the sales tax authorities and was not decided in writ proceedings.

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Issues: Whether the proposed sales tax levy on the impugned transactions was barred by Article 286(2) of the Constitution, whether section 33 of the Bihar Sales Tax Act, 1947, could support the levy after validation, and whether the Validation Act could sustain proceedings for assessment.

Analysis: The constitutional and statutory objections to the levy had already been rejected in the connected matters decided the same day. The Validation Act was held effective to cure the defect relied upon against the levy, and the challenge that the statute could not operate retrospectively or validate the impugned assessment proceedings was not accepted. The contention that the transactions were outside the Explanation to section 33 depended on factual matters for determination by the sales tax authorities and could not be decided in the writ proceedings.

Conclusion: The challenge to the levy failed, and the appeal was dismissed.

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