HARDEODAS JAGANNATH vs STATE OF ASSAM & ORS.

The Supreme Court addressed the validity of the Assam Sales Tax Act's extension to the Shillong Administered Area under Section 4 of the Extra Provincial Jurisdiction Act, 1947. The Court held that the Central Government's notification dated April 15, 1948, was valid as the instrument of accession was accepted on August 17, 1948, thus allowing the Act to be operative. Furthermore, the Court ruled that the Amending Act of 1958 could not be applied retrospectively to assessment periods prior to its enactment, and clarified that the authorities lacked the power to accept security in lieu of cash payment for tax assessments and penalties.