Revisional power under a repealed tax law survived where limitation had not expired, after clarificatory retrospective amendment.

The repeal of the Delhi Sales Tax Act, 1975 did not extinguish the Commissioner's revisional power where liability and the revisional period had not been barred by limitation. Section 106(2) of the Delhi Value Added Tax Act, 2004 preserved accrued rights, obligations and liabilities under the repealed Act, while Section 106(3) deemed acts done under the old law to be done under the new law. The retrospective insertion of Section 74A from 1 April 2005 was treated as clarificatory and curative, keeping suo motu revision alive for eligible DST assessments. Earlier Division Bench views to the contrary were overruled to that extent.

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Issues: Whether, on a conjoint reading of the repeal and savings clause in Section 106 of the Delhi Value Added Tax Act, 2004 and the retrospective insertion of Section 74A, the Commissioner could initiate suo motu revision against assessments completed under the Delhi Sales Tax Act, 1975, and whether such revisional power survived subject to limitation.

Analysis: The statutory scheme showed that the Delhi Sales Tax Act, 1975 was repealed, but Section 106(2) preserved not only previous operation of the repealed Act but also rights, title, entitlement, obligation and liability already acquired, accrued or incurred. Section 106(3) created a legal fiction that acts done under the repealed Act would be treated as done under the new Act. The power of revision under the old regime was distinct from appeal, but the Court held that revision was not a dead power if the liability and the revisional window had not been extinguished by limitation. The retrospective amendment inserting Section 74A from 1.4.2005 was treated as clarificatory and curative, showing legislative intent to keep the revisional remedy alive for eligible DST assessments. The earlier view that Section 106 did not save the revisional power was held to be incorrect.

Conclusion: The Commissioner could invoke suo motu revision under Section 74A in respect of DST assessments where the revisional period had not expired, and the contrary interpretation in the earlier Division Bench decisions was overruled to that extent.

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