Exemption notification survives repeal where the new VAT law preserves exemption power and no real inconsistency exists.

A notification exempting the transfer of the right to use buses to the State Road Transport Corporation was held to remain effective after the Uttar Pradesh Value Added Tax Act, 2008 came into force. The analysis states that both the repealed and re-enacted statutes treated transfer of the right to use goods as a taxable sale and preserved State power to issue exemption notifications. A mere difference in tax rates did not create inconsistency because the notification operated on the transaction itself, not on the rate structure. The notification was therefore treated as continuing under the later Act.

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Issues: Whether the notification dated 14 November 2000, issued under the Uttar Pradesh Trade Tax Act, 1948, was inconsistent with the Uttar Pradesh Value Added Tax Act, 2008 and therefore not saved under the repeal-and-saving provision.

Analysis: The notification exempted the specified transfer of the right to use buses to the State Road Transport Corporation from tax. Under both enactments, transfer of the right to use goods was a taxable sale, and both statutes also conferred power on the State to issue exemption notifications. The mere difference in rate of tax between the two enactments did not create inconsistency, because the notification operated on the transaction itself and not on the rate structure. Since the subject-matter of exemption remained permissible under the re-enacted statute, the notification was not rendered ineffective by repeal.

Conclusion: The notification was not inconsistent with the Uttar Pradesh Value Added Tax Act, 2008 and was deemed to continue under that Act. The issue is answered in favour of the assessee and against the revenue.

Ratio Decidendi: A notification issued under a repealed fiscal statute continues under the re-enacted statute if the power to grant such exemption persists and the notification is not inconsistent with the new enactment; a mere change in tax rate does not by itself create inconsistency.

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