Delegated tax exemption under the Central Sales Tax Act could not be impliedly repealed by a later local amendment.

A tax exemption on inter-State sales of jaggery and gur under section 8(5) of the Central Sales Tax Act remained effective until expressly cancelled by the competent authority. A later amendment under the Madras General Sales Tax Act operated in a separate field and could not withdraw, repeal, or neutralise the Central Act notification. In the absence of lawful cancellation by the authority that granted the exemption, and with no direct repugnancy between the enactments, implied repeal was not available. The exemption therefore continued until 20 March 1969, and the relevant inter-State sales were not liable to Central sales tax.

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Issues: Whether the exemption from Central sales tax on inter-State sales of jaggery and gur, granted under section 8(5) of the Central Sales Tax Act, 1956, stood withdrawn or impliedly repealed by Madras Act 2 of 1968 and the corresponding amendment to the local sales tax law.

Analysis: The exemption under section 8(5) of the Central Sales Tax Act, 1956, was granted by the competent authority acting as delegate of Parliament and continued until it was expressly cancelled. The local amendment under the Madras General Sales Tax Act, 1959, operated in a different field and could not affect a notification issued under the Central Act. The power to grant exemption included the power to withdraw it only by the authority conferred with that power under the Central statute. Since the local legislature had no authority to cancel or repeal the Central exemption notification, and there was no repugnancy between the two enactments, implied repeal could not be inferred.

Conclusion: The exemption continued to operate until 20 March 1969, and the inter-State sales of jaggery and gur during the relevant period were not liable to Central sales tax.

Final Conclusion: The writ petitions succeeded because the challenged turnover could not be brought to tax under the Central Sales Tax Act for the period when the exemption notification remained in force.

Ratio Decidendi: A tax exemption granted by a competent authority under delegated powers in one statutory regime cannot be withdrawn or impliedly repealed by a later amendment made under a different statute operating in a separate field, unless the authority that granted the exemption lawfully cancels it or the later law creates direct repugnancy.

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