Law:

Section:

Schedule to Kerala Plantation Tax Act, 1960 - Rate of tax - Kerala Finance Act, 1987, which came into effect from 1-7-1987, substituted Schedule to parent Act, and, thus, revised rates of plantation tax - Whether revised rates, as given in Schedule so substituted, were necessarily to be applied from very commencement of financial year 1987-88 - Held, yes FACTS Plantation tax was imposed in the State of Kerala under the Plantation Tax Act and the rates of tax were indicated in the Schedule. Those rates were increased by substituting the said Schedule through the Kerala Finance Act, 1987, which came into effect from 1-7-1987. Collection of tax at revised rates was resisted by certain planters, who contended that since the Amendment Act, 1987 became effective from 1-7-1987, the levy was really operative only from the next financial year, i.e., 1-4-1988. On writ: HELD The extent of the plantation on the first of April was relevant for levying plantation tax under the Act. Once the extent as on the date is determined, the assessing authority is to apply the proper rate as given in the Schedule. When the Finance Act, 1987 was passed, the assessing authority was bound to apply the rate relevant for that year as is noticeable from the Finance Act of that year. In relation to the assessment year 1987-88 the rates would be those indicated by the amendment of the Schedule for the year 1987-88. The turnover of a previous year can justifiably be converted by a statutory fiction as the turnover of the assessment year. It is open to the Legislature to completely alter the tax liability by the imposition of a different tariff in the course of the year. The Finance Act of any year is to be applied for the assessment of that year. In the present case, the Finance Act relevant for the assessment year 1987-88 was the Finance Act, 1987. Substituting the Schedule as for the assessment year 1987-88, the tax liability was competently altered as it was a case of imposition of a different tariff in the course of the year. There could, therefore, be no scope of doubt that the Schedule brought in by the Finance Act, 1987 should be employed for computation of plantation tax for the year…

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