M/S. AMERICAN REMEDIES PVT. LTD. AND ANR.versusGOVT. OF ANDHRA PRADESH AND ANR.

          MIS. AMERICAN REMEDIES PVT: LTD. AND ANR.                                A
                                       v.
              GOVT. OF ANDHRA PRADESH AND ANR.

                             JANUARY 12, 1999

       [DR. A.S. ANAND, CJ., M. SRINIVASAN AND.R.P. SETHI, JJ.]                    B

     Andhra Pradesh General Sales Tax Act, 1957 : First Schedule-Entry
 37-As amended by Amendment Act of 1996.

         Sales Tax-:-Demand made for difference of sales tax arising as a result   C
  of amendment of Entry 37-Challenge by assessee-Held amendment was in
• exercise of the legislative powers of the State-Validity of amendment not
  questioned-Grievance of assessee that demand for differential tax could not
  have been made held wholly mis-conceived-Assessee is liable to pay
  tax-Whether he has collected it from consunier or not is of no consequence.      D

        Collector of Central Excise v. New Tobacco Co. Etc. Etc., (1998) 1
 SCALE 58; Shri Kn"shna Enterprises & Ors. v. State of Andhra Pradesh &
 Ors., (1990) 76 STC 67; Polyciiem Ltd. & Anr. v. State of Maharashtra &
 Ors., [1998] 6 sec 196, held inapplicable.
                                                                                   E
       The Income Tax Officer, Alleppy v. M.C. Ponnoose and Ors. Etc.,
 [1969] 2 sec 351, referred to,

       CIVIL APPELLATE JURISDICTION: Special Leave Petition (C)
 Nos. 22942-22943 of 1997.                                                         F

      From the Judgment and Order 20.2.97 of the Andhra Pradesh High
 Court in W.P. No. 3296-97 of 1997.

        B. Kanta Rao, Dr. M.V.K. Murthy and Ms. Sudha Gupta for the
 Petitioners.                                                                      G

      K. Ram Kumar, Ms. Shanti Narayanan and Ms. Asha G. Nair for the
 Respondents.

       The following Order of the Court was delivered :                            H
                                       63
    64                   SUPREME COURT REPORTS .                 (1999] l S.C.R.

A        Following its earlier judgment in Writ Petition No. 2425 of 1997,
    which had been dismissed on 14.2.1997, a Division Bench of the High Court
    of Andhra Pradesh dismissed the writ petition filed by the petitioner
    herein, through which challenge had been made to the demand of dif-
    ference of sales tax, which had occasioned as a result of an Amendment
B   of Entry 37 of the First Schedule to the Andhra Pradesh General Sales Tax
    Act, 1957, by Act No. 27 of 1996. By virtue of Section l(f) of the Amend-
    ment Act of 1996, the provisions of the Act, other than those mentioned
    in sub-clause (1), were to come into force with effect from 1.8.1996 and
    those provisions include amended Entry 37 (supra).
c
          That the State legislature had the power to amend the Andhra
    Pradesh General Sales Tax Act is not in dispute. It also is not disputed
    that the amendment made by the 1996 Act was in exercise of its legislative
    powers by the State legislature. The validity of the amendment had not
D   been questioned either in the writ petition or even before us. That being
    the fact situation, the grievance made by learned counsel for the petitioner
    to the effect that the demand of differential tax based on the amendment
    of Entry 37.could not have been made, is wholly mis-conceived. It is settled
    position that an assessee is liable to pay sales tax and the question whether
E   he has collected it from consumer or not is of no consequence. His liability
    is by virtue of being an assessee under the Act.


         Learned counsel relies upon Collector of Central Excise v. New
  Tobacco Co. Etc. Etc., (1998] 1 SCALE 58. That judgment has no applica-
F tion whatsoever, as the amendment therein had been made by a Notifica-
  tion and not by any Amending Act of the legislature and in that context,
  it was held. that since the act required publication of the Notification,
  the same could come into force on being so published and not prior to
  it. Reliance placed on Shri Krishna Enterprises & Ors. v. State of Andhra
G Pradesh & Ors., (1990] 76 STC 67 is equally mis-conceived. The judgment
  does not deal with the issue at all. Learned counsel has then relied upon
  Polychem Ltd. & Anr. v. State of Maharashtra & Ors., (1998) 6 SCC 196.
  That judgment again does not help the petitioner at all. As a matter of fact,
   in this judgment, relying upon The Income Tax Officer, Alleppy v. M.C.
H Ponnoose and Ors. Etc., (1969] 2 SCC 351, it has been reiterated that it is
---,
                 AMERICAN REMEDIES PVT. LTD. v. GOVT. OF A.P.                   65

       open to the legislature to enact laws which have retrospective operation.      A

              In this view of the matter, we do not find any merit in these special
       leave petitions, which are dismissed with costs, which are quantified at Rs.
       5,000.

       T.N.A.                                                  Petitions dismissed.   B