Repeal-saving protection against double taxation barred fresh sales tax on motor spirit already taxed under the repealed law.

On repeal of the earlier motor spirit enactment, tax liability already accrued on wholesale sales was preserved by the general saving provision, and the later Finance Act did not clearly displace that accrued protection. Motor spirit already taxed under the repealed law could not be subjected to a second levy under the M.P. General Sales Tax Act, 1958. Section 54(2) independently barred fresh tax where goods had already suffered tax under the repealed regime and were thereafter brought within the new last-sale tax structure. The disputed sales were therefore not taxable again under the Act.

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Issues: (i) Whether, after repeal of the motor spirit enactment, sales of motor spirit already subjected to tax under the repealed law remained exempt from tax under the M.P. General Sales Tax Act, 1958 by virtue of the repeal-saving provision. (ii) Whether section 54(2) of the M.P. General Sales Tax Act, 1958 barred levy of tax again on such stock of motor spirit after the commencement of the Act.

Issue (i): Whether, after repeal of the motor spirit enactment, sales of motor spirit already subjected to tax under the repealed law remained exempt from tax under the M.P. General Sales Tax Act, 1958 by virtue of the repeal-saving provision.

Analysis: The repeal of the earlier motor spirit enactment did not contain a saving clause, so the general saving provision under section 10(c) of the M.P. General Clauses Act, 1957 applied. A liability to tax had already accrued under the repealed law when the wholesale sales took place, and a corresponding right existed that the same goods would not be taxed again on resale. The subsequent Finance Act, though introducing a fresh entry for motor spirit under the general sales tax law, did not use clear words showing an intention to destroy the pre-existing rights and liabilities preserved by the general clauses legislation. The continuation of the taxing scheme therefore did not authorise a second levy on the same stock already taxed under the repealed law.

Conclusion: The sales of the stock of motor spirit already taxed under the repealed enactment were not taxable again under the M.P. General Sales Tax Act, 1958.

Issue (ii): Whether section 54(2) of the M.P. General Sales Tax Act, 1958 barred levy of tax again on such stock of motor spirit after the commencement of the Act.

Analysis: Section 54(2) expressly provides that where goods taxable at the point of first sale under a repealed enactment had already suffered tax before commencement of the Act, and the new Act makes them taxable at the point of last sale, no further tax shall be levied on their sale or purchase after commencement. The provision squarely covered motor spirit already taxed under the repealed law and thereafter sold under the new regime at the point of last sale.

Conclusion: Section 54(2) barred any fresh levy on the impugned sales.

Final Conclusion: The reference was answered in favour of the assessees, holding that the disputed sales of motor spirit already taxed under the repealed law were not liable to tax again under the M.P. General Sales Tax Act, 1958.

Ratio Decidendi: On repeal, prior tax liability and the corresponding immunity from a second levy are preserved unless the later statute clearly manifests a contrary intention; where the new statute itself contains an anti-double-taxation saving, no fresh tax can be imposed on goods already taxed under the repealed law.

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