Repeal and saving cannot revive a concluded tax inquiry after withdrawal of the earlier notice on the same cause

A notice under section 6 of the Madhya Pradesh Commercial Tax Act, 1994 was treated as unsustainable because an earlier notice on the same cause under section 4-A of the Madhya Pradesh General Sales Tax Act, 1958 had already been withdrawn by a reasoned final order. The repeal and saving principle preserves pending proceedings, but it does not revive a matter that had already been concluded before the new Act came into force. As no factual distinction was shown, the authority lacked jurisdiction to reopen the same inquiry under the new enactment.

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Issues: Whether a notice issued under section 6 of the Madhya Pradesh Commercial Tax Act, 1994 could be sustained when an earlier notice on the same cause under section 4-A of the Madhya Pradesh General Sales Tax Act, 1958 had already been withdrawn by a reasoned final order.

Analysis: The prior proceeding under the repealed enactment had attained finality after inquiry and a reasoned order withdrawing the notice. The subsequent notice under the new enactment concerned the same issue and no factual distinction was shown. The repeal and saving principle preserves pending proceedings, but it does not permit revival of a matter already concluded long before the new Act came into force. In such circumstances, the authority had no jurisdiction to initiate the same inquiry again merely because the earlier statute had been repealed and replaced.

Conclusion: The second notice and the connected order were jurisdiction and could not be sustained; the challenge succeeded in favour of the petitioner.

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