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        VAT / Sales Tax

        2002 (2) TMI 1101 - SC - VAT / Sales Tax

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        Repeal by substitution prevented revival of the earlier society commission rule after the substituted rate expired. An expressly repealed rule replaced by a substituted rule did not revive when the substituted rate ceased to operate. The Court treated the change as ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Repeal by substitution prevented revival of the earlier society commission rule after the substituted rate expired.

                          An expressly repealed rule replaced by a substituted rule did not revive when the substituted rate ceased to operate. The Court treated the change as repeal by substitution, so the earlier society commission rate could not automatically spring back into force on expiry of the later rule. Section 6-C of the U.P. General Clauses Act was held inapplicable because section 20 did not extend that revival provision to statutory rules framed under the parent Act. The demand to levy society commission at 5% was therefore unsustainable.




                          Issues: Whether the earlier rule fixing society commission at 5% revived after the substituted rule prescribing 2.69% ceased to operate, and whether section 6-C of the U.P. General Clauses Act applied so as to bring about such revival.

                          Analysis: The governing scheme empowered the State Government under sections 18 and 28 of the U.P. Sugarcane (Regulation of Supply and Purchase) Act, 1953 to prescribe the rate of society commission by rules. The original rule 49 was expressly deleted and replaced by a new rule 49, and the substitution was confined to a stated period. The Court treated this as a case of repeal by substitution, not merely a suspension of the old rule. On that basis, once the substituted rule expired, the earlier rule did not automatically spring back into force. The Court further held that section 6-C of the U.P. General Clauses Act could not be relied on for revival because section 20 of that Act did not extend section 6-C to statutory rules framed under the parent Act.

                          Conclusion: The earlier rule did not revive, section 6-C of the U.P. General Clauses Act was inapplicable, and the demand to levy society commission at 5% was unsustainable.

                          Ratio Decidendi: Where an existing rule is expressly repealed and substituted by a new rule, the earlier rule does not revive on expiry of the substituted rule unless the statute expressly provides for such revival or the general revival provision is applicable to the subordinate legislation.


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