Subordinate tax exemption notification gives way to later statutory amendment covering the same goods

A notification issued under section 8-A of the Karnataka Sales Tax Act, 1957, is subordinate delegated legislation and cannot survive a later legislative amendment that inserts a Schedule entry governing the same class of goods. When the Legislature expresses a contrary and inconsistent intention through the amended Act or Schedule, that legislative mandate prevails and the earlier exemption notification becomes ineffective by implication. Section 24 of the Karnataka General Clauses Act, 1899, does not preserve a notification that has become inconsistent with the amended law. The notification was therefore superseded.

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Issues: Whether a notification issued by the State Government under section 8-A of the Karnataka Sales Tax Act, 1957, continues to operate after the Legislature amends the Act and inserts in the Schedule an entry relating to the same class of goods.

Analysis: Section 8-A empowers the State Government to grant exemption or reduction by notification, but that power is exercised as delegated legislation and remains subordinate to the legislative mandate in the Act and its Schedules. Where the Legislature subsequently amends the charging scheme and introduces a specific entry in the Schedule governing the same goods, the later legislative expression prevails. A notification under section 8-A cannot survive if it is inconsistent with the amended statutory provision. Section 24 of the Karnataka General Clauses Act, 1899, does not preserve a notification that has become inconsistent with the re-enacted or amended law. The earlier notification is therefore superseded by implication when the Legislature makes the later amendment covering the same goods.

Conclusion: The question is answered in the affirmative. The notification issued under section 8-A stands impliedly repealed or rendered ineffective when the Legislature amends the Act and inserts an entry in the Schedule relating to the class of goods covered by the exemption.

Ratio Decidendi: A subordinate notification granting exemption under section 8-A cannot continue once the Legislature, by later amendment, expresses a contrary and inconsistent intention in the Act or Schedule governing the same goods.

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