Escaped turnover survives repeal where saving provisions preserve accrued tax liability and limitation is satisfied under the assessment rule.

Liability to tax on escaped turnover survived repeal of the earlier sales tax enactment because the saving provision in the later Act, read with the Interpretation and General Clauses Act, preserved accrued liabilities and the right to assess them absent a contrary legislative intention. The assessment was also within limitation, as the relevant rule allowed escaped turnover to be assessed within three years from the end of the year to which the tax related. Sales of medicine on prescription were not covered by the cited Government Order exemption, so the exemption claim failed.

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Issues: (i) Whether proceedings to assess escaped turnover could be initiated after repeal of the earlier sales tax enactment in view of the saving provisions in the later Act and the Interpretation and General Clauses Act; (ii) whether the assessment of escaped turnover was within limitation under the Sales Tax Rules; (iii) whether sales of medicine on prescriptions were exempt under the Government Order dated 5 February 1951.

Issue (i): Whether proceedings to assess escaped turnover could be initiated after repeal of the earlier sales tax enactment in view of the saving provisions in the later Act and the Interpretation and General Clauses Act.

Analysis: The liability to tax on the escaped turnover had already arisen when the turnover escaped assessment under the earlier Act. The saving provision in the later enactment preserved the previous operation of the repealed Act and liabilities already accrued or incurred thereunder. The later proviso did not disclose any different intention that would exclude the general saving rule. The absence of initiation of proceedings before repeal did not destroy the preserved right to assess the escaped turnover.

Conclusion: The proceedings were validly initiated and the liability survived the repeal.

Issue (ii): Whether the assessment of escaped turnover was within limitation under the Sales Tax Rules.

Analysis: The governing rule permitted assessment of escaped turnover at any time within three years next succeeding the year to which the tax related. The assessment was made within that period.

Conclusion: The assessment was within limitation.

Issue (iii): Whether sales of medicine on prescriptions were exempt under the Government Order dated 5 February 1951.

Analysis: The claimed prescription sales had already been held not to fall within the scope of that Government Order, and no reason was shown to depart from that view.

Conclusion: The claim to exemption failed.

Final Conclusion: The challenge to the reassessment failed on all substantive grounds, and the escaped turnover remained assessable in law.

Ratio Decidendi: On repeal and re-enactment, accrued tax liabilities and the right to assess escaped turnover are preserved unless the later statute manifests a different intention, and limitation for escaped assessment runs under the special procedural rule applicable to the assessment year.

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