Implied repeal and textile exemption: tyre cord fabric remained covered by the Central Sales Tax notification.
The Rajasthan HC held that a later notification under the Rajasthan Sales Tax Act did not impliedly supersede the earlier Central Sales Tax exemption notification issued under section 8(5), because the two operated in different fields and exemption withdrawal required a fresh exercise of power under the Central Act. It also held that tyre cord fabric fell within the ordinary and commercial meaning of textile fabric, following the Supreme Court's treatment of the product as a textile. The Central notification therefore continued to apply, and the assessee's claim to exemption was upheld.
Issues: (i) Whether the notification dated 14 December 1957 issued under section 8(5) of the Central Sales Tax Act, 1956 stood impliedly superseded by later notifications under section 4(2) of the Rajasthan Sales Tax Act, 1954 so as to withdraw the exemption from sales of tyre cord fabrics. (ii) Whether tyre cord fabric is a textile fabric covered by the exemption granted under the notification issued under section 8(5) of the Central Sales Tax Act, 1956.
Issue (i): Whether the notification dated 14 December 1957 issued under section 8(5) of the Central Sales Tax Act, 1956 stood impliedly superseded by later notifications under section 4(2) of the Rajasthan Sales Tax Act, 1954 so as to withdraw the exemption from sales of tyre cord fabrics.
Analysis: The later notifications under the Rajasthan Act were held to operate in a different field and, in the absence of any fresh exercise of power under section 8(5) of the Central Sales Tax Act, 1956, they could not be treated as having automatically superseded the earlier Central notification. Implied repeal was held to be disfavoured, and a general notification under the local Act could not repeal the special notification issued under the Central Act. The exemption under the Central notification could be withdrawn only by a specific exercise of power under section 8(5).
Conclusion: The notification dated 14 December 1957 under section 8(5) of the Central Sales Tax Act, 1956 was not impliedly superseded and continued to govern the relevant period.
Issue (ii): Whether tyre cord fabric is a textile fabric covered by the exemption granted under the notification issued under section 8(5) of the Central Sales Tax Act, 1956.
Analysis: The prior Supreme Court decision treating tyre cord fabric as a textile fabric was followed. The Court held that the meaning of textile in common and commercial parlance encompassed tyre cord fabric, and the alleged change in the definition under the Additional Duties of Excise law did not affect the express exemption under the Central Sales Tax notification covering textiles.
Conclusion: Tyre cord fabric was treated as a textile fabric and remained within the exemption under the Central notification.
Final Conclusion: The revisions failed, and the assessee's claim to exemption under the Central Sales Tax notification was upheld, resulting in rejection of the challenge to the Board's order.
TaxTMI 
AI Drafter ✕
TaxTMI 
