2006 Supreme(SC) 136

2006(2) Supreme 454
Supreme Court of India
(From Andhra Pradesh High Court)
Ruma Pal, Dr. A.R. Lakshmanan & Dalveer Bhandari, JJ.
M/s. Gammon India Ltd. —Appellant
versus
Spl. Chief Secretary & Ors. —Respondents
Civil Appeal No. 1148 of 2006
(Arising out of SLP (C) Nos. 20487-20488/2005)
With
Civil Appeal No. 1149 of 2006
(Arising out of SLP (C) Nos. 22994-22995 of 2005)
Decided on 16-2-2006
Counsel for the Parties :
For the Appellant : Jaideep Gupta, Sr. Advocate, P.H. Parekh, Ms. Mridula Ray Bhardwaj, Sameer Parekh, Vijay Kedia (for P.H. Parekh & Co.) Advocates.
For the Respondents : Anoop G. Chaudhary, Sr. Advocate, June Chaudhary, Manoj Saxena, Jetendra Singh, Amit Meharia and Mohanprasad Meharia, Advocates.

Important pointWhenever there is a repeal of an enactment and simultaneous reenactment, the reenactment is to be considered as reaffirmation of the old law and provisions of the repealed Act which are thus reenacted continue in force uninterruptedly unless, the reenacted enactment manifests an intention incompatible with or contrary to the provisions of the repealed Act.

Headnote:(i) Andhra Pradesh General Sales Tax Act, 1957—Section 5B, 7A(2)—A.P. General Clauses Act, 1891 Section 8—Andhra Pradesh Value Added Tax Act—Section 80(3)—Effect of Repealing A.G. General Sales Tax Act—Section 80(3) of the A.P.V.A. Tax Act specifically makes Section 8 of A.P. General Clauses Act applicable to repeal of A.P.G.S.T. Act—Simultaneous repeal and reenactment—A.P.V.A. Tax Act clearly saves the earlier provisions in toto—Rights and liabilities accrued or incurred under the A.P.G.S. Tax Act shall continue even after it is repealed—General Clauses Act—Section 6.

       Held : Since the effect of a repeal is to obliterate the statute and to destroy its effective operation in future, or to suspend the operation of the common law, when it is a common law principle which is abrogated, any proceedings which have not culminated in a final judgment prior to the repeal are abated at the consummation of the repeal. When, however, the repeal does not contemplate either a substantive common law or statutory right, but merely the procedure prescribed to secure the enforcement of the right, the right itself is not annulled but remains in existence enforced by applying the new procedure. In the instant cases, there is a simultaneous repeal and the reenactment and the A.P.V.A. Tax Act clearly saves the earlier provisions in toto. Consequently, rights and liabilities accrued or incurred under the A.P.G.S. Tax Act shall continue even after it is repealed. On critical analysis and scrutiny of all relevant cases and opinions of learned authors, the conclusion becomes inescapable that whenever there is a repeal of an enactment and simultaneous reenactment, the reenactment is to be considered as reaffirmation of the old law and provisions of the repealed Act which are thus reenacted continue in force uninterruptedly unless, the reenacted enactment manifests an intention incompatible with or contrary to the provisions of the repealed Act. Such incompatibility will have to be ascertained from a consideration of the relevant provisions of the reenacted enactment and the mere absence of saving clause is, by itself, not material for consideration of all the relevant provisions of the new enactment. In other words, a clear legislative intention of the reenacted enactment has to be inferred and gathered whether it intended to preserve all the rights and liabilities of a repealed statute intact or modify or to obliterate them altogether. (Paras 72 to 74)

       (ii) Andhra Pradesh General Sales Tax Act, 1957—Sections 5B, 7A(2)—Andhra Pradesh Value Added Tax Act—Section 80(3)—Repeal of A.P. General Sales Tax Act—Whether Assistant Commissioner of Commercial Taxes was entitled to initiate and complete the penalty proceedings under the A.P.G.S. Tax Act subsequent to its repeal and introduction of A.P.V.A. Act w.e.f. 1.4.2005—Appellant, a construction Company, after obtaining construction contract in State of Andhra Pradesh applied to a registered dealer for purposes of Section 5B of A.P. General Sales Tax Act for concessional tax available to registered dealers, purchasing from other registered dealers—According to respondents, appellant had falsely issued Form G and claimed reduced rates of tax from sellers—Appellant claiming that G-2 Form was issued by Sales Tax authorities—Relying on the said G-2 Form, appellant while purchasing ‘cement’ for manufacture of ready mix concrete, obtained the benefit of a lower tax—Notices issued by Assistant Commissioner, Commercial Taxes for imposition of maximum penalty under the Act for falsely issuing G-2 Form—Proceedings initiated u/s 7A(2)(ii) of A.P.G.S. Tax Act—Assistant Commissioner of Commercial Taxes confirmed additional tax and penalty—Appeal filed by appellant—Andhra Pradesh Value Added Tax Act came in force from 1.4.2005 in the State—A.P.G.S. Tax Act was repealed—High Court held that Assistant Commissioner was not prohibited from initiating and completing the said proceedings—Appellant is directed to pay a lump sum of Rs. 1.5 crores pending adjudication of appeals.

       Held : On the touchstone of the principles of law culled out from the judgments of various courts applied to the facts of these cases lead to a definite conclusion that the Assistant Commissioner (Commercial Taxes), Warangal Division was fully justified in initiating and completing the proceedings under the A.P.G.S. Tax Act even after it is repealed. We have been informed that the appeals are pending adjudication before the concerned Authority. The High Court has directed the appellant to pay 40 of the total amount which has been imposed in the four notices issued to the appellant. We have heard the learned counsel for the parties. In the facts and circumstances of the case, we deem it appropriate to modify the directions given by the High Court and direct the appellant to pay a lump sum of Rs. 1.5 crores within four weeks pending adjudication of appeals emanating from all the four notices before the Appellate Tribunal. In case the amount as directed is paid by the appellant within a period of four weeks, the order of attachment issued by the respondents shall not be given effect to during the pendency of the proceedings before the Appellate Tribunal. On appellant’s depositing the said amount within the stipulated time the tribunal shall hear the appeals and decide them in accordance with law. (Paras 75 to 77)