Savings clause after repeal: pre-repeal show cause notice raised a referable question on continuation of proceedings.

A show cause notice issued before repeal of the Gold (Control) Act, 1968 raised the question whether proceedings had commenced and could continue under the savings clause in Section 6 of the General Clauses Act, 1897. On the facts, the timing and service of the notice created a substantial question of law as to the effect of repeal on pending proceedings. That legal issue was held to justify a reference to the High Court under Section 82B of the Gold (Control) Act, 1968, and the reference application succeeded.

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Issues: Whether issue of a show cause notice before repeal of the Gold (Control) Act, 1968 constituted commencement of proceedings for the purpose of Section 6 of the General Clauses Act, 1897 and whether the question of law arising from the Tribunal's order merited reference under Section 82B of the Gold (Control) Act, 1968.

Analysis: The show cause notice had been issued before the repeal of the Act and the department asserted that it was served on the date of repeal. In that factual setting, the question whether proceedings had been instituted and were capable of continuing under the savings clause in Section 6 of the General Clauses Act, 1897 was a substantial question of law. The existence of a legal issue affecting continuance of proceedings justified reference to the High Court.

Conclusion: The question of law was held to merit reference in favour of the Revenue.

Final Conclusion: The reference application succeeded and the connected cross objection did not survive.

Ratio Decidendi: Where a show cause notice is issued before repeal and the effect of repeal on pending proceedings is in issue, the matter raises a referable question of law under the savings provision.

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