Exemption notification continues despite tax-rate enhancement unless later law expressly or impliedly overrides it.

A notification issued under section 8A(1) of the Karnataka Sales Tax Act, 1957 continues to operate until it is cancelled or varied in the manner provided by section 8A(3). Mere enhancement of the tax rate by a subsequent amending Act does not, by itself, render an existing exemption notification ineffective unless the later enactment clearly overrides it by express language or necessary implication. The earlier view treating such a notification as automatically ineffective on rate enhancement was overruled, and the exemption for old gold and silver articles remained valid, leaving the assessee not liable to tax on that turnover.

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Issues: Whether a notification issued under section 8A of the Karnataka Sales Tax Act, 1957 exempting the purchase turnover of old gold and silver articles from tax under section 6 continued to operate after the amendment enhancing the rate of tax on general goods.

Analysis: Section 8A(1) empowers the State Government to reduce the rate of tax or exempt specified goods by notification, and section 8A(3) provides the manner in which such notification may be cancelled or varied. A notification issued under section 8A(1) therefore remains effective until it is modified or cancelled under section 8A(3). Mere enhancement of the tax rate by a subsequent amending Act does not, by itself, render an existing exemption notification ineffective or inconsistent, unless the amending legislation clearly shows an intention to override the notification or curtail the power under section 8A. On that footing, the earlier view that such a notification became ineffective on the legislative enhancement of tax rate was held to be incorrect and was overruled.

Conclusion: The notification exempting the purchase turnover of old gold and silver articles remained valid and operative, and the assessee was not liable to tax under section 6 on that turnover.

Ratio Decidendi: A notification issued under section 8A of the Karnataka Sales Tax Act, 1957 continues in force until cancelled or varied under that provision, and it is not displaced merely because a subsequent amending Act enhances the tax rate unless the later enactment expressly or by necessary implication overrides the notification.

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