In Brief
The Supreme Court held that Section 52A of the Kerala Court Fees and Suits Valuation Act, 1959 (introduced effective October 26, 2002, prescribing higher court fees) does not apply retrospectively to appeals filed under Section 260A of the Income Tax Act where the underlying assessment or appellate order dates before March 6, 2003. The right of appeal is a substantive vested right accruing when proceedings begin in the lower court, not when the High Court appeal is filed. For assessees, applicable court fees are those in force on the assessment date; for the Department, those applicable when the appellate authority negatived the demand. Absent express or necessary retrospective language, later legislation cannot impair vested rights. The High Court's judgment was set aside and the appeals allowed.
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