TaxTMI 
TaxTMI 
1973 (10) TMI 41
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....ax payable on that turnover at the rate of 7 per cent. Ultimately, by an order dated 3rd July, 1971, the Additional Judge (Revisions), Sales Tax, Varanasi, reduced the turnover determined by the Sales Tax Officer to Rs. 9,000. While determining the rate applicable for calculating sales tax on sale of bricks, the Additional Judge (Revisions), Sales Tax, relied upon certain decisions of the High Court wherein it has been decided that the notification dated 1st December, 1962, issued under section 3-A, levying sales tax on the sale of bricks at the rate of 7 per cent was invalid, and held that such turnover was liable to be taxed at the rate of 2 per cent. It appears that it was attempted to validate the notification dated 1st Decemb....
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....ed an Act known as the Uttar Pradesh Sales Tax (Amendment and Validation) Act, 1971, which was published in the U.P. Gazette dated 22nd August, 1971. By section 3 of this Act, sections 3 and 3-A of the U.P. Sales Tax Act were substituted by new sections 3, 3-A and 3-AB. New section 3-A provided that the turnover in respect of the goods specified in the second column of the First Schedule shall be liable to tax at the point specified in the third column thereof at such rate, not exceeding ten per cent, as the State Government may, by notification in the Gazette, declare. It also provided that in respect of goods the rates prevailing by virtue of section 3-AB immediately before the commencement of the Validation Act, 1971, shall continue to b....
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....ent or 2 per cent?" The Judge (Revisions), Sales Tax, has accordingly stated the case and referred the aforementioned question for the opinion of this court. It appears to us that reference to the U.P. Sales Tax (Amendment and Validation) Bill, 1971, made in the application for reference as also in the question referred to this court has been made under some misapprehension. By the time the application for reference came to be made, the U.P. Sales Tax (Amendment and Validation) Act, 1971 (U.P. Act 20 of 1971), had already come into force with effect from 22nd August, 1971, and the real question, therefore, that arose for consideration was whether in view of Act 20 of 1971, the assessee's turnover of sale of bricks during the year ....
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.... case, the Supreme Court observed that undoubtedly when the Tribunal is called upon to decide a taxing dispute it must apply the relevant law applicable to the particular transaction and that law normally is the law applicable as on the date on which the transaction in dispute had taken place. If the law, which the Tribunal seeks to apply to the dispute, is amended, so as to make the law applicable to the transaction in dispute, it would be bound to decide the question in the light of the law so amended. Similarly, when the question has been referred to the High Court, and in the meanwhile the law is amended with retrospective operation, it would be the duty of the High Court to apply the law so amended. If the question referred to the High....
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....ion referred in the light of the amended law, i.e., the U.P. Sales Tax (Amendment and Validation) Act, 1971, and, accordingly, it invites the High Court to decide the question in the light of such law. Further, in order to answer the question referred to us no further investigation of facts is necessary. Accordingly, while determining whether the turnover of sale of bricks during the year 1964-65 could be taxed at the rate of 7 per cent as provided in Notification No. ST-6438/X-1012-1962 dated 1st December, 1962, the High Court can take into consideration the change, which has been made with retrospective effect, by the U.P. Sales Tax (Amendment and Validation) Act, 1971. It is now beyond doubt that section 3 of the U.P. Sales Tax (Amendmen....