1980 PLP 607 (SCMR)

Date of hearing : 18th February, 1980. NASIM HASAN SHAH, J.‑The respondent M/s Kausar Ice Factory, Lyallpur (Faisalabad) is an assessee under the Sales Tax Act, 1951. Under the assessment year 1959‑60 which had statutorily been extended to fifteen months (Ist April, 1959 to 30th June, 1960) instead of the normal financial year of twelve months, the respondents turn over was assessed at Rs. 71,500 and it was brought to charge by the Sales Tax Officer by his order dated 16th June, 19 d

5. The respondent appealed to the appellate Assistant Commissioner who by his order dated 8th November, 1966 reduced the turn over to Rs. 60,000 and bifurcated it into two portions i. e. 40,000 for the period of 12 months, namely, Ist April, 1959 to 31st March, 1960 and Rs. 20,000 for the period of three months (1st April, 1960 to 30th June, 1960). Feeling aggrieved with the above order, the, respondent appealed to the Income‑tax Appellate Tribunal add contended that no tax could be levied in view of the exemption allowed by Sales Tax Notification No. 2 dated 20th January, 1956 by which turn over up to Rs. 60,000 had been exempted from tax. This plea was accepted by the Tribunal and the respondent was held to be exempted from sales tax. The Sales Tax Officer, however, moved the Tribunal by a miscellaneous application to the effect that the case was governed by Notification No. 291 dated Ist July, 1959 fixing the exemption of Rs. 60,

000. The Tribunal heard the appeal afresh but maintained its earlier decision on the reasoning that the Notification No. 291 dated 1st July, 1959 was operative in respect of the year commencing Ist July, 1959 and could not apply to the assess ment year commencing Ist April, 1959. The petitioner herein, consequently, referred the following question under section 17 (1) of the Sales Tax Act to the Lahore High Court, namely: ‑ "Whether on the facts and in the circumstances of the case, the Tribunal was legally justified to declare that the case of the assessee was covered by Sales Tax Notification No. 2 dated 20th January, 1956 and was accordingly exempt from the leave of sales tax." The reference was answered in affirmative by a Division Bench of the Lahore High Court by its judgment dated 19th October, 1977, Hence this petition for leave to appeal. After hearing Sh. Abdul Haque on behalf of the petitioner we are inclined to agree with the view taken by the High Court. It is well established that a right that has already accrued cannot be 'taken away by giving retrospective effect to delegated legislation. The respondent had acquired a vested right on 1st April, 1959 under S. R. O. No.2 dated 20th January, 1956 whereby it was not liable to pay Sales Tax unless its turn over exceeded Rs. 60,

000. The subsequent Notification No. S. R. O. 291 dated 1st July, 1959 bringing down this limit to Rs. 36,000 could not adversely affect the rights of the respondent whose accounting year started from 1st April, 1959. This petition, therefore, fails and is hereby‑ dismissed. Petition dismissed,