Exemption notification cannot alter a separate last-point taxation rule; later withdrawal affected only the exemption part.

A notification issued only under the exemption power could withdraw the exemption granted by an earlier notification, but it could not disturb a separate notification fixing the last point of taxation under the rule-making power. The earlier notification of 16 March 1966 was treated as containing two distinct parts: one exempting specified precious and semi-precious stones under section 4(2), and another fixing the taxable point at the last sale in the chain. The later notification of 8 March 1968, issued only under section 4(2), therefore cancelled only the exemption part and left the point-of-taxation provision intact.

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Issues: Whether Notification No. F.5(19) FD/CT/68-5 dated 8 March 1968 cancelled the earlier Notification No. F.5(25) FD/CT/66-VII dated 16 March 1966 in its entirety or only to the extent that the earlier notification granted exemption under section 4(2) of the Rajasthan Sales Tax Act, 1954.

Analysis: The earlier notification of 16 March 1966 was treated as comprising two distinct parts: one issued under section 4(2) exempting specified precious and semi-precious stones from tax on conditions, and another issued under rule 15 read with section 5 fixing the point of taxation for the relevant goods at the last point in the series of sales by successive dealers. The notification of 8 March 1968 was issued only under section 4(2). Since section 4(2) confers power to grant or withdraw exemption, but does not empower the State Government to alter the single point of taxation fixed under rule 15 read with section 5, the later notification could cancel only the exemption part of the earlier notification. It could not affect the separate notification fixing the last point of taxation.

Conclusion: The later notification cancelled only the first part of the notification dated 16 March 1966, and not the part fixing the last point of taxation.

Ratio Decidendi: A notification issued solely under the exemption power cannot alter or withdraw a separately issued notification fixing the point of taxation under the rule-making power.

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