Sales tax notifications yield to later statute: reduced dye rate could not survive the amending Act

An earlier notification reducing sales tax on dyes to 4% could not continue to apply after an amending Act brought the relevant turnover to tax at 8% from 1 April 1974. The later legislative mandate prevailed over the prior notification because the notification was effective only to the extent it remained consistent with the statutory scheme. Section 24 of the General Clauses Act did not preserve the reduced rate, since it cannot operate where the earlier notification conflicts with subsequent enactment. The operative effect was that the higher 8% rate applied until the later notification took effect.

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Issues: Whether the petitioner was entitled to rely on the earlier notification reducing the sales tax rate on dyes to 4% despite the subsequent amendment enhancing the rate to 8% for the period from 1 April 1974 to 1 July 1974.

Analysis: The earlier notification issued under the Act could operate only so long as it was consistent with the legislative scheme. Once the amending Act came into force with effect from 1 April 1974 and declared that turnover relating to dyes was taxable at 8%, the prior notification could not prevail against the later legislative mandate. Section 24 of the General Clauses Act could not assist the petitioner, because that provision operates only where there is no inconsistency between the earlier notification and the subsequent enactment.

Conclusion: The petitioner was not entitled to the reduced rate of 4% for the disputed period and was liable to pay tax at 8% until the later notification took effect.

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