Exemption notification prevails despite later taxable entry where no rescinding Gazette notification was issued.

An exemption notification granting relief for all kinds of tapes under section 9(1) of the Andhra Pradesh General Sales Tax Act, 1957 remained effective even after adhesive tapes were later inserted as a taxable entry in the First Schedule under section 40(1). The power to amend the Schedule was separate from the power to grant or withdraw exemption, and the earlier notification could be revoked only by a subsequent Gazette notification. In the absence of any rescinding or revoking notification, the mere insertion of a taxing entry did not extinguish the exemption. The assessee was therefore entitled to the exemption benefit.

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Issues: Whether an exemption notification issued under section 9(1) of the Andhra Pradesh General Sales Tax Act, 1957 continued to operate after an entry taxing adhesive tapes was inserted in the First Schedule under section 40(1) of the same Act.

Analysis: The exemption in favour of all kinds of tapes had been granted by a notification issued under section 9(1) and published in the Gazette. The power to alter the Schedules under section 40 was distinct from the power to grant or withdraw exemption under section 9. Under the General Clauses Act, a power to issue an order includes power to rescind or revoke it, but the exemption notification could be withdrawn only by another notification in the Gazette. Since no rescinding or revoking notification was issued after insertion of the relevant schedule entry, the exemption remained in force. The mere addition of a taxable entry did not, by itself, annul the earlier exemption.

Conclusion: The exemption notification continued to operate, and the assessee remained entitled to its benefit. The revision was, therefore, liable to be dismissed.

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