Krishna Iyer, J. - (1.) We are in complete agreement with the reasoning and conclusions of the High Court and a brief statement of the short point that arises for decision and of the grounds for dismissing the appeal is all that is needed. The Motor Vehicles (Taxation of Passengers and Goods) Act passed by the Madras legislature in the composite Madras State was made applicable to Andhra Pradesh when that State was carved out. There were certain difficulties in the matter of levy of taxation on vehicles plying on inter-State routes and the State of Andhra Pradesh thought it fit to enact its own legislation, which it did in the form of the Andhra Pradesh Motor Vehicles (Taxation of Passengers and Goods) Act, 1952, Section 4 (1) whereof empowered the State Government to make necessary rules to effectuate the enactment. Pursuant to this power, certain rules were framed, of which Rule 1 consisted of three sub-rules. On 19-6-1957 sub-rules (4) and (5) were added to that rule and sub-rule (5) ran thus:"The proviso to sub-rule (1) of Rule 1 shall cease to be operative on and from 1st October, 1955 and the composition fee calculated with reference to clause (a) or clause (b) of sub-rule (1) in respect of vehicle plying on inter-State routes lying partly in the Madras State and partly in the Andhra State shall, with effect from that date be paid in the State where the vehicles are registered and normally kept."
(2.) This sub-rule enabled operators of motor vehicles on inter-State routes lying partly in the Madras State and partly in the State of Andhra Pradesh to pay the tax duly to either of these two States. It was, however, deleted along with sub-rules (3) and (4) on 29th March, 1963 with effect from 1st April, 1962 and it is the retrospectivity of the deletion that is challenged before us because the Andhra Pradesh State sought to collect tax for the period commencing 1st April, 1962 from the respondent under the Act above referred to, although he had already paid the same to the State of Madras. The ground of invalidty was stated to be that S. 4 (1) did not confer on the State Government power to make rules with retrospective effect.
(3.) Thus, the only question which engages our attention is as to whether S. 4 (1) does confer on the delegate, namely, the State Government, the power to make retrospective rules. The High Court, after an elaborate discussion on the jurisprudence of subordinate legislation, came to the conclusion that no such power was conferred on the State Government and that consequently the deletion which resulted in retrospective operation of the liability to payment of tax was bad in law.;