1969 (12) TMI 102 - HC - VAT and Sales Tax

Summary

Issues:
1. Interpretation of the effect of a notification under the Madras General Sales Tax Act after its repeal by the Andhra Pradesh General Sales Tax Act.
2. Determination of the continued validity and applicability of a notification exempting certain transactions from sales tax under the new Act.
3. Analysis of the impact of a subsequent notification on the previous notification exempting goods from sales tax.

Detailed Analysis:
1. The first issue before the court was the interpretation of the effect of a notification issued under the Madras General Sales Tax Act after its repeal by the Andhra Pradesh General Sales Tax Act. The court examined whether the notification, G.O. Ms. No. 376 dated 23rd June, 1954, exempting kalamkari cloth from sales tax, remained valid under the new Act. The court considered the saving clause in the proviso to section 41 of the new Act, which preserved notifications issued under the repealed Act. The court held that the notification issued under the old Act was saved and deemed to have been issued under the new Act, allowing for its continued validity and application to transactions under the new Act.

2. The second issue involved determining the continued validity and applicability of the notification exempting certain transactions from sales tax under the new Act. The court analyzed the impact of the subsequent notification, G.O. Ms. No. 1091 dated 10th June, 1957, which provided a list of goods exempt from sales tax but did not include kalamkari cloth. The court held that the new notification did not expressly or impliedly repeal the previous notification, G.O. Ms. No. 376 dated 23rd June, 1954. The court emphasized that the absence of kalamkari cloth from the new notification did not automatically nullify the previous notification, as there was no indication of an intention to repeal it. Therefore, the court concluded that the previous notification remained in force and continued to exempt kalamkari transactions from sales tax.

3. The final issue addressed the impact of a subsequent notification on the previous notification exempting goods from sales tax. The court rejected the argument that the new notification impliedly repealed the previous one, emphasizing that there was no language in the new notification to suggest such an effect. The court highlighted that the government's failure to expressly repeal the previous notification indicated its intention to maintain both notifications concurrently. Consequently, the court dismissed the revision petition, affirming the validity of the original notification exempting kalamkari transactions from sales tax under the Andhra Pradesh General Sales Tax Act.