Administrative/Executive Order/Circular Cannot Be Given Retrospective Effect In The Absence Of Any Legislative Competence : Supreme Court
Live LawThe Supreme Court observed that administrative/executive orders or circular cannot be made applicable with retrospective effect in the absence of any legislative competence.The dispute in this case pertains to charges for infrastructure facilities which are being provided by the BSNL to the batch of telecom service providers, which were increased by a circular dated 12th June,. Before the Apex Court, the BSNL contended that the rate of infrastructure charges stood revised on the basis of the circular issued by the Government of India, Ministry of Finance, revising the classification of cities vide its circular dated 29th August, 2008 and that became effective from 1 st September, 2008 and it was the reason for which the circular dated 12th June, 2012 became effective in revising the infrastructure charges for telecom service providers w.e.f. Keeping in mind the aforestated principles of law on the subject, we are of the view that applicability of the circular dated 12th June, 2012 to be effective retrospectively from 1st April 2009, in revising the infrastructure charges, is not legally sustainable and to this extent, we are in agreement with the view expressed by the Tribunal under the impugned judgment." The court, partly allowed the appeal by granting BSNL the liberty to revise the notional rates based on 10% increase every year in terms of circular dated 12th June, 2012 as applicable on 1st April, 2013 and to raise its additional demand/bills based on notional increase of infrastructure charges effective as on 1st April, 2013 to the service providers/respondents.
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