9911796707
TMI Blog1994 (12) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... nd drinks to their customers in a hotel or restaurant. By amendment to the Act, by Act 13 of 1982 with effect from April 1, 1982, the rate of tax was increased to 5 per cent. The question that arises for consideration is whether section 8-A(3-A) of the Act which was in force at the relevant time would be attracted to the facts of the case: "If the rate of tax payable under this Act in respect of any goods or class of goods gets modified by an amendment to this Act, notification, if any, issued in respect of such goods or class of goods under clause (a) of sub-section (1), shall, with effect from the date from which such amendment comes into force be deemed to be cancelled to the extent it relates to such goods or class of goods." The said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exemption or reduction in tax with reference to the rate in respect of specified goods or class of goods at all points in the series of sales by successive dealers or with reference to specific class of persons in regard to whole or part of their turnover and section 8-A(3-A) is applicable to only notification issued under sec- tion 8-A(1)(a) of the Act and not in respect of any notification issued under section 8-A(1)(b) of the Act. The notification issued in this case on March 10, 1982, falls under section 8A(1)(b) of the Act. 4.. Learned Government Pleader countering the submissions made on behalf of the petitioner urged that the notification issued reduced the rate of tax and therefore it is a notification issued under section 8-A(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act as it relates to the reduction in the rate of tax applicable to a class of dealers. The reduction of tax is applicable or relatable to sec- tion 8-A(1)(a) whereas the class of dealers to whom it is applicable is relatable to section 8-A(1)(b) of the Act. In that view of the matter, we must say that the notification under consideration is one issued as a composite notification under section 8-A(1)(a) and 8-A(1)(b) both. The position in law is very clear that when the Legislature alters the rate of tax it is deemed to be conscious of the fact of all notifications issued by the Government in relation to the tax structure. If the rate of tax is altered it must be deemed that the Legislature was altering the rate of tax in respect of the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law, the notification would survive. In the present case, if there is alteration as to the rate of tax and if there is, as stated earlier, a prescription of a lower rate of tax in respect of a class of dealers and that got altered by reason of the amendment of the law as interpreted by us, the notification in question cannot survive. In that view of the matter, we must hold that the authorities were justified in bringing to tax the turnover of the petitioner at 5 per cent. 7.. We have not referred to the view taken either by the assessing authority or the appellate authority or by the Tribunal because the whole matter was presented to us for a fresh consideration by the learned counsel appearing in the case and that was not the approach ..... X X X X Extracts X X X X X X X X Extracts X X X X
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