Sales tax transition rules: last sales after commencement remained taxable despite earlier purchase under the repealed regime.

The Assam General Sales Tax Act, 1993 introduced a new levy on motor vehicle goods by taxing 8% at the first sale to a registered dealer and 6% at the last sale to an unregistered buyer or consumer. The repeal and savings clause preserved earlier notifications and orders, but did not protect purchasers from liability under the new charging scheme. Accordingly, last sales made on or after 1 July 1993 were taxable at the statutory rate even if the goods had been bought earlier under the repealed enactment, and the impugned circular was consistent with the Act.

---

---

Issues: Whether the impugned circular was ultra vires the Assam General Sales Tax Act, 1993, and whether component parts of motor vehicles purchased before 1 July 1993 could be subjected to tax at 6% on the second or last sale made on or after that date.

Analysis: Under the Assam Finance (Sales Tax) Act, 1956, tax on the goods in question was levied only at the first sale. The Assam General Sales Tax Act, 1993 introduced a new levy structure for the same goods under Schedule IV, read with section 8(1)(c), by prescribing a total rate of 14% with 8% at the first sale to a registered dealer and 6% at the last sale to an unregistered buyer or consumer. The repeal and savings provision in section 74(1) preserved existing notifications and orders, but did not create any vested immunity from the new charging scheme. Once the new Act came into force on 1 July 1993, every last sale made on or after that date attracted the statutory rate, irrespective of the date of prior purchase under the repealed Act.

Conclusion: The circular was held to be within jurisdiction and consistent with the Act, and the levy of 6% on the last sale was upheld.

Final Conclusion: The challenge failed because the new sales tax regime validly applied to last sales made after its commencement, even where the goods had been purchased earlier under the repealed enactment.

Ratio Decidendi: A repealed sales tax regime does not confer a vested right against liability under a new charging provision that expressly taxes the relevant sale event from its commencement date.

---