Judgment

CHANDRACHUD, J. :- In 1959, the Orissa Legislature enacted the Orissa Taxation (on Goods Carried by Roads or Inland Waterways) Act, 7 of 1959, the constitutionality of which was challenged by the appellants on the ground that the Bill leading to the Act was moved without the previous sanction of the President of India, as required by the Proviso to Art. 304 of the Constitution. During the pendency of the writ petitions filed by the appellants in the Orissa High Court, the Orissa Legislature passed the Orissa Taxation (on Goods Carried by Roads or Inland Waterways) Validation Act, 18 of 1962, validating the Act of 1959. The High Court accepted the appellants contention that the Act of 1959 was unconstitutional but it dismissed the writ petitions on the ground that the appellants were not entitled to any relief as they had not challenged the Act of 1962 which had validated the Act of 1959. After the decision of the high Court, respondent No. 2, the Tax Officer, assessed tax in varying amounts for different quarters on the goods carried by the appellants by road. The appellants then filed fresh writ petitions under Art. 226 of the Constitution challenging the Act of 1962. Those petitions were dismissed by the High Court but in appeal, the judgment of the High Court was set aside by this Court on August 10, 1967. It was held by this Court that the validating Act of 1962 did not cure the defect from which the Act of 1959 suffered and therefore, respondents were not entitled to recover any tax from the appellants under the aforesaid Acts.

2. On March 25, 1968 the Orissa Legislature, having obtained the previous sanction of the President to the moving of the Bill, passed the Orissa Taxation (on Goods Carried by Roads or Inland Waterways) Act. 8 of 1968, imposing the same levy which it had unsuccessfully attempted to levy under the Act of 1959 and to validate under the Act of 1962. Some of the appellants from whom the State Government had recovered taxes after the Act of 1962 was upheld by the High Court asked for refund thereof after the Act was declared unconstitutional by this Court. The refund having been refused by the Government, the appellants filed writ petitions in the High Court challenging the validity of the 1968 Act. The dismissal of those writ petitions has given rise to these appeals by special leave.

3. There is no substance in any of the contentions raised on behalf of the appellants regarding the constitutionality of the Act of 1968. The bill which matured into the impugned Act was introduced by the Orissa Legislature after obtaining the previous sanction of the President under the Proviso to Art. 304 of the Constitution. As shown by the Preamble, the Act was passed in orders to provide for the levy of tax on certain goods carried by roads or inland waterways in the State of Orissa and to validate certain taxes imposed on such goods. By S. 1 (3), the Act was to be deemed to have come into force on April 27, 1959 being the date on which the Act of 1959 had come into force. Section 3 of the Act which contains the charging provision provides that there shall be levied a tax on goods of the description mentioned in the section and carried by means specified therein. Section 27 of the Act provides in so far as material that notwithstanding the expiry of the Act of 1959 and notwithstanding anything contained in any judgment, decree or order of any Court, all assessments made, all taxes imposed or realised, any liability incurred or any action taken under the Act of 1959 shall be deemed to have been validly made, imposed, realised, incurred or taken under the corresponding provisions of the Act of 1968. These provisions of the Act of 1968 show that what the State Legislature did thereby was to enact, with retrospective effect, a fresh piece of taxing statute after complying with the constitutional mandate contained in the proviso to Art. 304 that no Bill for the purpose of Cl. (b) of that article shall be introduced o