9911796707
TMI Blog1980 (6) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover of old gold and silver articles from the levy of sales tax under section 6 of the Act became invalid with effect from 1st July, 1972, with effect from which date sub-section (1) of section 5 was amended enhancing the rate of tax payable on general goods from 3 to 31 per cent?" 2.. The petitioner is engaged in purchasing of old gold and silver articles and manufacturing gold and silver jewellery out of it and selling them. For the assessment years 1973-74 and 1974-75 the petitioner furnished his returns. During the relevant years he had purchased old gold and silver articles from individuals who were not liable to pay sales tax under the Act. Thereafter the assessee prepared gold and silver jewellery out of the gold articles so purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 70, the tax payable under section 6 of the said Act on the purchases of articles of gold and/or silver (whether set with precious stones or not) by a manufacturer of such articles subject to the condition that the said manufacturer proves to the satisfaction of the assessing authority that he has paid the tax payable either under sub-section (1) or clause (a) of sub-section (3) of section 5 of the said Act on articles of gold and silver (whether set with precious stones or not) manufactured out of the said articles so purchased by him." 4.. Section 8A of the Act confers power on the State Government to reduce or exempt the tax payable under the Act by issue of a notification. The learned counsel for the assessee therefore contended that i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which came into force with effect from 1st April, 1974, the sales tax payable on the turnover relating to dyes was enhanced from 6 per cent to 8 per cent. Thereafter the State Government issued another notification dated 7th June, 1974, under section 8A of the Act purporting to reduce the tax payable on the turnover relating to dyes to 4 per cent with effect from 1st July, 1974. Rejecting the claim of the assessee therein that the reduced rate of 4 per cent was available even during the period from 1st April, 1974, to 1st July, 1974, it was held that as the legislature, which was the highest legislative body, amended the Act and declared that on and after 1st April, 1974, the turnover relating to dyes would be subjected to a tax at a higher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... otification issued under section 8A(1) becomes invalid by the enhancement of rate of tax on the goods specified in the notification by any subsequent amending Act on the ground of inconsistency. In our view, such a notification does not in any way become inconsistent with. the provisions of the Act by the mere enhancement of the rate of tax by an amendment made subsequent to the issue of a notification unless the amending Act clearly shows that It should be effective, notwithstanding a notification already issued under section 8A of the Act or that it took away the power of the State Government under section 8A of the Act, generally or in respect of such items. There is nothing in the amending Act 5 of 1972 which could be considered as havi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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