Repeal and pending proceedings: a show cause notice can commence action, allowing continuation under the General Clauses Act.

Repeal of the Gold (Control) Act, 1968 did not automatically terminate proceedings already lawfully initiated before repeal. Applying Section 6 of the General Clauses Act, 1897, the article states that validly commenced proceedings continue despite repeal unless a contrary saving provision excludes that result. The issue of a show cause notice was treated as commencement of proceedings, and prior service of that notice before repeal was not essential for the proceedings to continue. The stated legal effect is that pending action under the repealed Act survived and could proceed to adjudication under the saving principle in Section 6.

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Issues: Whether the issue of a show cause notice amounts to commencement of proceedings for the purposes of Section 6 of the General Clauses Act, 1897, and whether service of the notice before repeal of the Gold (Control) Act, 1968 is necessary for continuance of the proceedings.

Analysis: The reference concerned proceedings initiated under Section 71 of the Gold (Control) Act, 1968, where the notice had been issued before repeal but the adjudication order was passed after repeal. The legal effect of repeal without a saving clause was examined with reference to Section 6 of the General Clauses Act, 1897. The governing principle applied was that, on repeal of a Central Act, pending proceedings do not automatically lapse where Section 6 applies, and the decisive consideration is whether proceedings had lawfully commenced before repeal rather than whether final orders were completed before that date.

Conclusion: The show cause notice constituted commencement of proceedings, and service of the notice before repeal was not a legal requirement for continuance of the proceedings. The reference was answered in favour of the Revenue and against the assessee.

Final Conclusion: Repeal of the Gold (Control) Act, 1968 did not defeat proceedings already commenced under the Act, and the matter was decided in favour of their continuation under Section 6 of the General Clauses Act, 1897.

Ratio Decidendi: Where a Central Act is repealed without a saving clause, proceedings validly commenced before repeal continue by virtue of Section 6 of the General Clauses Act, 1897, and prior service of the show cause notice before the date of repeal is not indispensable for their continuance.

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