Sales tax exclusion continued for spirituous medicinal preparations after repeal and re-enactment of the duty provision.

Section 4 of the General Sales Tax Act, 1125 excluded goods on which duty was or could be levied under specified abkari and prohibition enactments. Spirituous medicinal preparations had originally fallen within the corresponding duty scheme under the Cochin Abkari Act, but that duty provision was repealed and replaced by the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. Applying Section 7 of the Travancore-Cochin Interpretation and General Clauses Act, 1125, the reference to the repealed provision was read as a reference to the re-enacted provision, absent a contrary intention, so the sales tax exclusion continued to apply to spirituous medicinal preparations.

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Issues: Whether sales tax could be imposed on spirituous medicinal preparations under Section 4 of the General Sales Tax Act, 1125, after the corresponding duty provisions in the earlier Abkari law were repealed and replaced by the Medicinal and Toilet Preparations (Excise Duties) Act, 1955.

Analysis: Section 4 of the General Sales Tax Act, 1125 excluded from its operation goods on which duty was or might be levied under the specified abkari and prohibition enactments. The duty provisions applicable to spirituous medicinal preparations under the Cochin Abkari Act stood repealed and replaced by the Medicinal and Toilet Preparations (Excise Duties) Act, 1955. By virtue of Section 7 of the Travancore-Cochin Interpretation and General Clauses Act, 1125, a reference in another enactment to a repealed provision is to be construed as a reference to the corresponding re-enacted provision unless a different intention appears. On that construction, the sales tax exclusion continued to apply to spirituous medicinal preparations.

Conclusion: Sales tax was not leviable on spirituous medicinal preparations, and the assessment order imposing such tax was quashed.

Final Conclusion: The petition succeeded in respect of the turnover relating to spirituous medicinal preparations, while the remaining orders concerning other commodities were left undisturbed.

Ratio Decidendi: Where a taxing statute excludes goods subject to duty under a named enactment, and that enactment is repealed and re-enacted without a different legislative intention, the reference extends to the re-enacted provision and the exclusion continues to operate.

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