Repeal with saving clause preserves penalty proceedings for liabilities under the old sales tax law after repeal.

The repeal of the Andhra Pradesh General Sales Tax Act, 1957 by the Andhra Pradesh Value Added Tax Act, 2005 did not extinguish liabilities, penalties, or proceedings arising under the old Act because section 80 preserved prior operation and section 80(3) applied the general saving clause in the Andhra Pradesh General Clauses Act, 1891. That saving provision allowed liabilities and legal proceedings in respect of matters under the repealed Act to be instituted, continued, or enforced as if the repealing Act had not been passed. Penalty proceedings for liabilities incurred under the repealed Act were therefore validly commenced after repeal and remained within jurisdiction.

---

---

Issues: Whether penalty proceedings could be initiated under the repealed Andhra Pradesh General Sales Tax Act, 1957 after the Andhra Pradesh Value Added Tax Act, 2005 came into force.

Analysis: The saving provision in section 80 of the Andhra Pradesh Value Added Tax Act, 2005 expressly repealed the Andhra Pradesh General Sales Tax Act, 1957 but preserved prior operation, accrued liabilities, and actions taken under the repealed enactment. Section 80(3) further made section 8 of the Andhra Pradesh General Clauses Act, 1891 applicable on repeal. That provision preserves liabilities, penalties, and legal proceedings in respect of matters arising under the repealed Act and permits such proceedings to be instituted, continued, or enforced as if the repealing Act had not been passed. On that basis, the repeal did not extinguish the power to commence penalty proceedings for liabilities incurred under the old Act.

Conclusion: The initiation of penalty proceedings after 1 April 2005 was valid and within jurisdiction; the challenge to the proceedings failed.

Ratio Decidendi: Where a repealing statute expressly applies a general saving clause, proceedings for liabilities incurred under the repealed Act may be validly instituted after repeal as if the repealing Act had not been passed.

---