Sales tax exemption for goods used in cigarette manufacture remained available because the earlier Act continued to apply to cigarettes.

The West Bengal sales tax scheme did not completely repeal the Bengal Finance (Sales Tax) Act, 1941 for cigarettes. Section 23 of the 1954 Act merely excluded cigarettes from the 1941 Act's operation while preserving the deduction mechanism under section 5 for goods used in manufacturing cigarettes. The amended section 25 introduced in 1958 made cessation of the 1941 Act dependent on a notification specifying the commodity, and no notification was issued for cigarettes. The later 1959 amendment to the 1941 Act confirmed that the earlier Act revived and continued to apply to cigarettes, so the exemption under section 5(2)(a)(ii) for purchases used in manufacture remained available.

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Issues: Whether the West Bengal Sales Tax Act, 1954 and the West Bengal Sales Tax (Amendment) Act, 1958 repealed the Bengal Finance (Sales Tax) Act, 1941 in relation to cigarettes, and whether the exemption under section 5(2)(a)(ii) of the 1941 Act continued to apply to goods purchased for use in the manufacture of cigarettes.

Analysis: The wide definitions of goods and dealer in the 1941 Act would, by themselves, cover cigarettes and dealers in cigarettes, and section 5(2)(a)(ii) granted exemption for purchases of goods used in manufacture. Section 23 of the 1954 Act did not effect a complete repeal of the 1941 Act in relation to cigarettes; it excepted cigarettes from the operation of the 1941 Act, while preserving the deduction mechanism in section 5 for goods used in manufacturing cigarettes. The amended section 25 introduced by the 1958 Act made the cessation of the 1941 Act dependent upon a notification specifying the commodity, and no such notification was issued for cigarettes. The later legislative scheme, including the 1959 amendment to the 1941 Act, showed that the 1941 Act revived and continued to operate in relation to cigarettes.

Conclusion: The exemption under section 5(2)(a)(ii) of the 1941 Act remained available, the 1941 Act was not obliterated as regards cigarettes, and the company was entitled to relief.

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