STATE OF PUNJAB Vs. SUKH DEB SARUP GUPTA

JUDGEMENT

(1.) This is an appeal by special leave from a judgment of the Punjab High Court holding that medicinal or toilet preparations containing alcohol were exempt from the payment of tax under the East Punjab General Sales Tax Act, hereinafter called "the Act".

(2.) The respondent is running a factory for manufacturing spirituous and medicinal preparations containing alcohol at Jind in the district of Sangrur. Before the coming into force of the Constitution of India on January 26, 1950, "medicinal or toilet preparations" fell within the definition of "excisable articles" on which the excise duty was payable under S. 3 (6) (c) of the Punjab Excise Act, 1914. The Act came into force in 1948. Under its provisions tax was levied on the sale of goods with the exception of articles exempted under S. 6 of the Act. These articles were given in Schedule B wherein Entry 37 was in these terms:

(3.) The short point which falls to be determined is whether Section 8 of the General Clauses Act, 1897, would govern the case and whether the respondent could claim the benefit of the exemption in Entry 37 of Sch. B to the Act notwithstanding that the exemption related expressly only to goods on which duty could be levied under the Punjab Excise Act, 1914. Section 8 (1) of the General Clauses Act provides: