The retrospective effect given to the amendments and the incorporation of provisions related to the levy of interest in the substantive law were sufficient to cover the defect pointed out by the Supreme Court.

M. R. CALLA, J. - Through this group of writ petitions, numbering 29, the petitioners have challenged the provisions of sub-clause (2)(d) of the validation clause 120 of the Finance Act, 2000 (Act No. 10 of 2000) be declared to be violative of articles 14 and 19(1)(g) of the Constitution of India and of section 9(2B) of the Central Sales Tax Act, 1956. The challenge to the validity of the aforesaid provisions is coupled with the prayer that the notice for demand of interest may also be declared to be illegal, without jurisdiction and against the principles of natural justice. Whereas the common questions of law are involved in all these matters based on identical facts, we propose to decide all these matters by this common judgment and order as under. The reference shall be made to the pleadings of the parties from D.B. Civil Writ Petition No. 4674 of 2001 and D.B. Civil Writ Petition No. 1165 of 2001 only as leading cases, while deciding this group of 29 petitions.

D.B. Civil Writ Petition No. 4674 of 2001 :

The petitioner-company is registered under the Rajasthan Sales Tax Act, 1994 and the Central Sales Tax Act, 1956 and the Assistant Commissioner, Rajasthan, Kar Bhavan, Jaipur, is the assessing authority. Their assessment for the assessment year 1996-97 under section 9 of the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act") read with section 29 of the Rajasthan Sales Tax Act, 1994 (hereinafter referred to as "the State Act") was made on March 22, 1999 and by passing the assessment order, additional demand was created and it is the case of the petitioner that the same had been deposited. The petitioner has set up the case that the interest can be levied and charged on delayed payment of tax only if the statute that levies and charges the tax, makes a substantive provision in this behalf. It is the case of the petitioner that earlier the assessing authorities were levying interest under the Central Sales Tax Act, as it then was, and that a question came up for consideration before the honourable Supreme Court in the case of India Carbon Ltd. v. State of Assam reported in [1997] 106 STC 460 and the Supreme Court held that the provisions in the latter part of section 9(2) of the Central Act can be employed by the sales tax authorities only if the Central Act makes a substantive provision for the levy and charge of interest on Central sales tax and since there was no substantive provision in the Central Act requiring the payment of interest on Central sales tax, the assessing authorities of the State cannot for the purpose of collecting and enforcing payment of Central sales tax charge interest thereon. In this context, the reference has been made to the Finance Act, 2000 (Act No. 10 of 2000) (hereinafter referred to as "the Act of 2000"). As per clause No. 119, section 9 of the Central Act has been amended and vide sub-clause (c) of the said clause 119, sub-section (2B) has been inserted after sub-section (2A) in section 9 of the Central Act. That clause No. 120 of the Act of 2000 is a validation clause. Clauses 119 and 120 of the Act of 2000 are as under :

"119. Amendment of section 9 of Act 74 of 1956. - In the Central Sales Tax Act, 1956, in section 9, -

(a) in sub-section (2), for the word 'penalty', wherever it occurs, the words 'interest or penalty' shall be substituted;

(b) in sub-section (2A), for the words 'provisions relating to offences and penalties', the words 'provisions relating to offences, interest and penalties' shall be substituted;

(c) after sub-section (2A), the following sub-section shall be inserted, namely :-

(2B) If the tax payable by any dealer under this Act is not paid in time, the dealer shall be liable to pay interest for delayed payment of such tax and all the provisions for delayed payment of such tax and all the provisions relating to due date for payment of tax, rate of interest for delayed payment of tax and assessment and collection of interest for delayed