1997 (2) TMI 530

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....was made by Lingaraja Rath, J.-The question raised in this writ petition concerns the competence of the Legislature to make enhanced retrospective levy of sales tax while amending the A.P.G.S.T. Act, 1957, replacing an Ordinance without justifying the reasons assigned in the Statement of Objects and Reasons under the Act. The petitioner is a distributor of drugs and pharmaceuticals for various ....

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.... impose a levy of tax at a higher rate with prospective operation, but levy of taxation at a higher rate, which really amounts to imposition of tax, with retrospective operation has to be justified on proper and cogent grounds." 2.. After hearing the learned Government Pleader for Commercial Tax Department, we are of the view that the objection has no merit. The power of the Legislature to make....

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....ate of Mysore [1985] 58 STC 1 was that in the facts and circumstances of the case, to enhance levy from 6 per cent to 45 per cent with retrospective effect was arbitrary and unreasonable. The enhancement in that case was made to overcome the decision of the High Court wherein certain assessments had been found untenable in law and the Government was under an obligation to refund the levy duty. To ....

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....e matters relating to taxation or mode of taxation or basis of taxation or objects of taxation, etc. No explanation was required from the State for the amending Act having retrospective effect. 3.. Since this decision has considered the earlier in D. Cawasji & Co. v. State of Mysore [1985] 58 STC 1 (SC) and has explained it, it holds the field and is binding. 4.. As it is, the circumstances ....