GOVERNMENT OF ANDHRA PRADESH & ANR: vs HINDUSTAN MACHINE TOOLS LTD.

The Supreme Court held that the Legislature has the power to amend laws retrospectively, as seen in the case where the definition of 'house' was amended to include buildings constructed by the respondents, thus validating the imposition of house tax by the Gram Panchayat under Article 246(3) and Section 69 of the relevant Act. However, the Court found that there was no provision allowing the Gram Panchayat to levy permission fees for construction, as such fees require a quid pro quo relationship with services rendered, which was absent in this case. The appeal was partly allowed, affirming the legality of the house tax but rejecting the imposition of permission fees.