Notifications issued under Sec. 8a of the Act continue to be in force until modified or cancelled by the State Government, and subsequent amendments to the Act do not automatically invalidate such notifications.

( 1 ) THESE two sales-tax revision petitions are presented under S. 23 (1) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the 'act') by a registered dealer against the orders of the Karnataka Appellate tribunal confirming the orders of the appellate and Assessing authorities. The only question of law that arises for consideration in these two revision petitions is as follows: -"whether the notification issued under Sec. 8a of the Act exempting the purchase turn-over of old gold and silver articles from the levy of sales tax under S. 6 of the Act became invalid with effect from 1-7-1972 with effect from which date sub-sec. (1) of Sec. 5 was amended enhancing the rate of tax payable on general goods from 3 to 31/2% ?"

( 2 ) THE petitioner is engaged in purchasing old gold and silver articles and manufacturing gold and silver jewellery out of it and selling them, for the assessment years 1973-74 and 1974-75 the petitioner furnished his returns. During the relevant years he had purchased old gold and silver articles from individuals who were not liable to pay sales Tax under the, Act. Thereafter the assessee prepared gold and silver jewellery out of the gold articles so purchased and had sold the said jewels. According to the assessee he was exempt from payment of sales tax under S. 6 of the act by virtue of a notification issued under S. 8a of the Act. The Commercial tax Officer assessed the assessee both under Section 5 (1.) and 6 of the Act at 31/2% which was the rate prevailing during the relevant period. Aggrieved by the said orders the assessee preferred appeals to the assistant Commissioner of Commercial tax (Appeals) Mangalore. His appeals were dismissed. Aggrieved by the said order the assessee preferred second appeals before the Karnataka Appellate tribunal. By common order dated 7-8-78 the "tribunal confirmed the assessment made by the assessing authority both under Sec. 5 (1) and 6 of the Act. However, the Tribunal reduced the purchase tax from 31/2% to 1% on the ground that the old gold and silver articles purchased by the assessee constituted bullion.

( 3 ) SRI K. Srinivasan, learned Counsel for the assessee contended that in view of the notification issued by the State government under Sec. 8a of the Act on 10-9-70 the assessee was not liable to pay tax under Sec. 6 of the Act on the purchase turnover of articles of gold and silver. The said notification reads:"in exercise of the powers conferred by section 8a of the Karnataka Sales Tax Act, 1957 (Karnataka act 25 of 1957), the Government of karnataka hereby exempts with effect from the 1st day of October 1970, the tax payable under Sec. 6 of the said Act on the purchases of articles of gold and or silver (whether set with precious stones or not) by a manufacturer of such articles subject to the condition that the said manufacturer proves to the satisfaction of the assessing authority that he has paid the tax payable either under sub-section (1) or clause (a) of sub-section (3) of Sec. 5 of the said Act on articles of gold and silver (whether set with precious stones or not) manufactured out of the said articles so purchased by him. "

( 4 ) S. 8a of the, Act confers power on the State Government to reduce or exempt the tax payable under the act by issue of a notification. The learned Counsel for the assessee therefore contended, that in view of the above notification the orders of the assessing authority as well as the appellate authority holding that the assessee was liable to tax under Sec 6 of the Act was unsustainable.

( 5 ) AS can be seen from the order of the Tribunal in coming to the con elusion that the aforesaid notificatior. issued under Sec. 8a of the Act was not available to the assessee, the Tribunal relied on the judgment of this court in Srisailappa v. Commercial tax Officer, 36 STC 223 = (1975) 2 Kar. L. J. 190. The view taken by the tribunal is in conformity with the ratio of the said decision.

( 6 ) THE learned Counsel