1966 (4) TMI 68 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the effect of the enforcement of the Central Act on the exemption granted under the Punjab General Sales Tax Act.

Analysis:
The case involved an appeal by the Punjab State and others against an order quashing the sales tax assessment on a respondent, who ran a factory manufacturing spirituous and medicinal preparations containing alcohol. The dispute arose from the exemption under Entry No. 37 of Schedule 'B' of the Sales Tax Act, which exempted goods subject to excise duty under the Punjab Excise Act from sales tax. The respondent argued that no sales tax was payable post the Central Act's enactment, which repealed corresponding state laws. The appellants contended that the exemption did not apply due to the Central Act. The Single Judge relied on the General Clauses Act's Section 8, leading to the quashing of assessment orders.

The central issue revolved around the interpretation of Section 8 of the General Clauses Act, which states that references to a provision repealed and re-enacted shall be construed as references to the provision re-enacted. The appellants argued that the section only applied to central enactments, not state enactments like the Punjab Excise Act. However, the court disagreed, stating that the section's language did not limit its application to central enactments. The court affirmed the Single Judge's decision, dismissing the appeal and leaving the parties to bear their own costs.

In conclusion, the judgment clarified the application of Section 8 of the General Clauses Act to the repeal and re-enactment of provisions, emphasizing that the section's scope was not limited to central enactments. The court upheld the quashing of the sales tax assessment, ruling in favor of the respondent based on the interpretation of the statutory provisions involved.