1955 (12) TMI 34

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..... R.D., dated 5th February, 1951. This was also a notification published under the authority of section 6(1) of the Sales Tax Act. Sub- section (1) of section 6 empowered Government to make an exemption or reduction in rate in respect of any tax payable under the Act, by publication of a notification to that effect in the Gazette. The sub-section runs as follows: "Government may, by notification in the Gazette, make an exemption, or reduction in rate, in respect of any tax payable under this Act- (i) on the sale of any specified class of goods at all points or at any specified point or points in the series of sales by successive dealers; or (ii) by any specified class of persons in regard to the whole or any part of their turnover." 2.. The .....

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..... nt under section 6(1) of the Act and was sought to be quashed for that reason. The learned judge overruled this contention by holding that the power conferred on Government under section 6(1) of the Act to grant exemption from the tax payable under section 3 included also the power to rescind or cancel the exemption once granted. Accordingly the O.P. was dismissed with costs. 3.. That the power conferred on Government by section 6(1) of the Sales Tax Act to make an exemption, or reduction in rate in respect of any tax payable under the Act, by publishing a notification to that effect in the Gazette includes the power to revoke or cancel such an ex- emption or reduction by the issue of a further notification in the Gazette, can admit of no .....

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..... uary, 1951, granting exemption from the payment of such tax, was only to suspend the levy of such tax so long as the notification granting the exemption remained in force. The suspension of the levy of the tax came to an end as soon as the notification granting the exemption was cancelled by another proper and valid notification. This latter notification cannot be said to have the effect of the imposition of any new tax. On the other hand, the notification merely removed the ban that had been placed on the levy of the tax which the statute had already imposed under sub-section (1) of section 3. The power of removing such a ban is co-extensive with the power granted by section 6(1) to impose the ban by publishing a notification granting the .....

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