M/S. GAMMON INDIA LTD. versus SPL. CHIEF SECRETARY AND ORS.

M/S. GAMMON INDIA LTD. versus SPL. CHIEF SECRETARY AND ORS.

The Assistant Commissioner of Commercial Taxes was justified in initiating and completing penalty proceedings under the Andhra Pradesh General Sales Tax Act, 1957 even after its repeal, as the Andhra Pradesh Value Added Tax Act, 2005 simultaneously repealed and reenacted the earlier provisions in toto, and Section 6 of the General Clauses Act operated to continue rights and liabilities until the new legislation indicated otherwise.

Parties
Appellant: Gammon India Ltd.; Respondents: Special Chief Secretary and Ors.
Jurisdiction
India
Judgment Date
16 February 2006
Procedural Posture
Civil Appeal / Appeal From Andhra Pradesh High Court Decision in Writ Petition
Outcome
Appeal disposed of; directions modified
Legal Topics
Repeal and Reenactment, Statutory Savings, Penalty Proceedings, Sales Tax Transitional Provisions
Tax Law Administrative Law Repeal and Reenactment Statutory Savings Penalty Proceedings Sales Tax Transitional Provisions

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Parties

Gammon India Ltd.

Appellant

Special Chief Secretary and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Andhra Pradesh High Court Decision in Writ Petition

Legal Issues

  1. 1 Whether the Assistant Commissioner of Commercial Taxes had jurisdiction to initiate and complete penalty proceedings under the Andhra Pradesh General Sales Tax Act, 1957 after its repeal

Ratio Decidendi

The Assistant Commissioner of Commercial Taxes was justified in initiating and completing penalty proceedings under the Andhra Pradesh General Sales Tax Act, 1957 even after its repeal, as the Andhra Pradesh Value Added Tax Act, 2005 simultaneously repealed and reenacted the earlier provisions in toto, and Section 6 of the General Clauses Act operated to continue rights and liabilities until the new legislation indicated otherwise.

Court Disposition

Appeal disposed of; directions modified

Orders

  • Appellant to pay a lump sum of Rs.1.5 crores within four weeks pending adjudication of appeals before the Appellate Tribunal.
  • If payment is made, order of attachment shall not be given effect to during pendency of appellate proceedings.