Validation and Exemption

(1) Notwithstanding any judgment, decree or order of any Court, Tribunal or authority to the contrary, any assessment (whether provisional or final ), re-assessment, levy or collection of any tax made or purporting to have been made, any action or thing taken or done in relation to such assessment (whether provisional or final ), re-assessment, levy, or collection under the provision of the Principal Act which imposed or authorized and imposition of or purporting to impose or authorize the imposition of , a tax on the supply, by way of or as part of any service or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) for cash, deferred payment or other valuable consideration, before the 2nd February, 1983 shall be deemed to be as valid and effective as if such assessment (whether provisional or final), re-assessment, levy or collection or action or thing had been made, taken or done under the principal Act as amended by this Act and accordingly: (a) all acts, proceedings, or things done or taken by the Government or by any officer of the Government or by other authority in connection with the assessment (whether provisional or final), re-assessment, levy or collection of such tax shall for all purposes, be deemed to be and to have always been done or taken in accordance with law; (b) no suit or other proceedings shall be instituted, maintained or continued in any Court or before any authority for the refund of any such tax ; and (c) no Court shall enforce any decree or order directing the refund of any such tax. (2) For the removal of doubts, it is hereby declared that nothing in sub-section (1) shall be construed as preventing any  person- (a) from questioning in accordance with the provisions of the principal Act, as amended by this Act any assessment (whether provisional or final), re-assessment; levy or collection of tax referred to in sub-section (1); or (b) from claiming refund of any tax paid by him in excess of the amount due from him by way of tax under the principal Act as amended by this Act. (3) Notwithstanding anything contained in sub-section (1), any supply of the nature referred to therein shall be exempt from the aforesaid tax- (a) where such supply has been made, by any restaurant or eating house of hotel (by whatever name called), at any time on or after the 7th day of September , 1978 and before the 2nd February, 1983 and the aforesaid tax has not been collected on such supply on the ground that no such tax could have been levied or collected at that time; or (b) where such supply, not being any such supply by any restaurant or eating house or hotel (by whatever name called), has been made at any time on or after the 4th January, 1972 and before the 2nd February, 1983 and the aforesaid tax has not been collected on such supply on the ground that no such tax could have been levied or collected at that time: Provided that the burden of proving that the aforesaid tax was not collected on any supply of the nature referred to in clause (a) or as the case may be, clause (b), shall be on the person claiming the exemption under this sub-section. Note: 1.    By G.O.Ms.No.1025 Rev.dt.22.8.1986 ordered total exemption from payment of sales tax by dealers whose total turnover for a year was Rs. 2 Lakhs and below at any time on or after 7.9.1978 and before 2.2.1983 waiving the condition of the discharge of burden of proving non-collection of tax under this section. By the same G.O. in the case of hotels whose annual turnover was above Rs.2 lakhs similar exemption was granted subject to the condition that the dealers shall submit a sworn affidavit to the assessing authority. (i)    that no such tax was collected during the period from 7.9.1978 to 2.2.1983. (ii)   that no provision has been made towards contingent liability of sales tax in the concerned year in the accounts,or  (iii)  that no claim towards such contingent liability was made in the income tax return or at the original assessment stage or at the appeal       stage or any court or by way of revision or before any authority under the income Tax Act, 1961. (4) Notwithstanding anything contained in any order or judgement of any Court, the amendment made by G.O.Ms.No.434, Revenue, dated 30th March, 1982 and G.O.Ms.No.1059, Revenue, dated 27th July, 1982 shall always be deemed to have been incorporated in Notification - II of G.O.Ms.No.1091, Revenue, dated 10th June, 1957 and no assessment made no demand raised, no seizure effected and no action connected with or incidental to the above actions shall be deemed to become invalid or ever to have been invalid on any ground whatsoever. Note: The powers of assessment conferred on ACs and CTOs (intelligence) by G.O.Ms.No.1091 as amended by G.O.Ms.No.434 Rev. dated 30.3.1982 were  struck down by the A.P.High Court in Sri Balaji Rice Company Vs. C.T.O. (1984) 55 S.T.C. 292,To overcome this decision this sub-section was inserted.