Continuing operation of tax notifications after reenactment: earlier purchase tax rate stayed in force until a new notification issued.

A notification fixing purchase tax under the earlier provision did not lapse automatically when section 4-B of the Punjab General Sales Tax Act, 1948 was inserted in place of the deleted proviso. By section 22 of the Punjab General Clauses Act, 1898, an existing notification issued under a repealed enactment continues in force, so far as it is consistent with the reenacted provision, until superseded by a fresh notification under the new section. The new notification under section 4-B was issued only on 6 April 1973, so the earlier notification remained operative until then and purchase tax was chargeable at the earlier rate for the intervening period.

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Issues: Whether the notification fixing the purchase tax rate issued under the earlier provision continued to operate after insertion of section 4-B of the Punjab General Sales Tax Act, 1948 until the new notification under section 4-B was issued.

Analysis: Section 4-B was inserted in place of the deleted second proviso to section 5(2)(a)(ii) of the Punjab General Sales Tax Act, 1948. The notification issued under the repealed provision did not cease automatically on reenactment. By virtue of section 22 of the Punjab General Clauses Act, 1898, an existing notification made under a repealed enactment continues in force, so far as it is consistent with the reenacted provisions, until it is superseded by a notification under the new provision. The new notification under section 4-B was issued only on 6 April 1973.

Conclusion: The old notification remained operative until 6 April 1973, and the assessee was liable to purchase tax at the earlier rate for the interregnum; the issue is decided in favour of the Revenue.

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