TaxTMI 
TaxTMI 
1975 (11) TMI 154
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....on. By an amendment of the Sales Tax Act the rate of tax chargeable on the sale of water-pumps was retrospectively enhanced from 2 per cent to 6 per cent. Consequently, the Sales Tax Officer issued a notice to the petitioner under section 21 of the U.P. Sales Tax Act calling upon the petitioner to show cause why assessment be not reopened and tax at the rate of 6 per cent be charged for the previo....
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.... retrospectively would expropriate the business of the petitioner in the commercial sense. We are not impressed with this argument. It is not disputed by Sri R.R. Agarwal that prospective levy of tax at the rate of 6 per cent on water-pumps is in no way unreasonable or extortionate. That being the position mere retrospective application of the law would not make the tax extortionate and confiscato....
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....nk that when a legislature has power to make retrospective laws there is no legal limitation on it as to the date from which it would affect retrospectively the right of the citizens. The third point was that since appeals are pending against the original assessments made at the rate of 2 per cent it would be the appellate authority under section 9(3) of the Act which will enhance the assessment ....