Holding

The Assistant Commissioner was fully justified in initiating and completing the penalty proceedings under the repealed APGST Act, as rights and liabilities accrued under it continue under Section 6 of the General Clauses Act, 1897.

Summary

Mis Gammon India Ltd., a construction company, was alleged to have falsely issued Form‑G and claimed concessional tax rates under the Andhra Pradesh General Sales Tax Act, 1957 (APGST). The Assistant Commissioner of Commercial Taxes issued show‑cause notices and, after hearing the appellant, confirmed additional tax and a penalty under Section 7A(2)(ii) of the APGST Act. While the appeals were pending, the APGST Act was repealed and the Andhra Pradesh Value Added Tax Act, 2005 (APVAT) came into force on 1 April 2005. The appellant challenged the Assistant Commissioner’s jurisdiction to continue penalty proceedings under the repealed Act. The Supreme Court held that, under Section 6 of the General Clauses Act, 1897, rights and liabilities accrued under a repealed enactment survive unless the repealing legislation shows a contrary intention. The APVAT Act expressly saves the earlier provisions, so the Assistant Commissioner was justified in initiating and completing the penalty proceedings. The Court modified the High Court’s payment direction and disposed of the appeal.

Issues considered

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.
Whether rights and liabilities accrued under the repealed APGST Act survive the enactment of the APVAT Act.

Legislation cited

Andhra Pradesh General Sales Tax Act, 1957s. 5-B(2), s. 7-A(2)(ii)
Andhra Pradesh Value Added Tax Act, 2005s. 80(1), s. 80(2), s. 80(3)
General Clauses Act, 1897s. 6

Subjects

repealsimultaneous repeal and reenactmentGeneral Clauses Acttax penaltyjurisdictionstatutory interpretationrights accruedAPVATAPGSTpenalty proceedings

Judgment

A MIS. GAMMON INDIA LTD.
v.
SPL. CHIEF SECRETARY AND ORS.

FEBRUARY 16, 2006 •
B [RUMA PAL, DR. AR. LAKSHMANAN AND
DAL VEER BHANDARI, JJ.]

Sales Tax:

C Andhra Pradesh General Sales Tax Act, 1957: Sections 5-B(2) and 7-
A(2)(ii).

Sales Fax-Rights and liabilities accrued or incurred under repealed
Act-Continuance of-Even after its repeal---Construction Company applied
D for concessional tax available to registered dealers-Allegations that the
Company had falsely issued Form G and claimed reduced rates of tax from
sellers-Penalty proceedings initiated under S. 7-A(2)(ii) of the APGST Ac/-
Assistant Commissioner (Commercial Taxes) confirmed additional tax and •
penalty---During pendency of appeals before Deputy Commissioner (Appeals) •
APGST Act repealed and AP VAT Act came into force on 1.4.2005-High
E Court held that Assistant Commissioner was not prohibited from initiating
and completing penalty proceedings under the APGST Act even after its
repeal---Correctness of--Held: Whenever there is repeal of an enactment, the
consequences laid dcwn in Section 6 of the General Clauses Act, 1897 will
follow unless, as the Section itself says, a different intention appears-In the
instant case, there is a simultaneous repeal and reenactment and the APVAT
F Act clearly saves the earlier provisions in toto-Consequently, rights and
liabilities accrued or incurred under the APGST Act shall continue even after _._
it is repealed-Hence, the Assistant Commissioner (Commercial Taxes) was
fully justified in initiating and completing the proceedings under the APGST
Act even after it is repealed-Andhra Pradesh Value Added Tax Act, 2005-
G General Clauses Act, 1897, S. 6-Jnterpretation of Statutes.
Doctrines:

Doctrine of Repeal-Explained

H 304
GAMMON INDIA I.TD. r ClllEF SECRETARY 305
The appellant was a construction company. According to the A
respondents, the appellant had falsely issued Form G and claimed reduced
rates of tax from the sellers. Show-cause notices were issued by the
Additional Commissioner of Commercial Taxes for imposing penalty and
accordingly proceedings were initiated under Section 7-A(2)(iii) of the
Andhra Pradesh General Sales Tax Act, 1957. The Assistant Commissioner
of Commercial Taxes after considering the grievance of the appellant B
confirmed the additional tax and penalty. The appellant had filed appeals
before the Deputy Commissioner (Appeals) which were pending
adjudication. During the pendency of the appeals, the A.P.G.S. Tax Act
was repealed and the Andhra Pradesh Value Added Tax Act, 2005 came
into force w.e.f. 1.4.2005. c
The appellant filed a writ petition before the High Court challenging
the jurisdiction of the Assistant Commissioner to initiate and complete the
penalty proceedings after the repeal of the A.P.G.S. Tax Act. The High
Court, while dismissing the writ petition, held that the Assistant
Commissioner was not prohibited from initiating and completing the said D
proceedings. Hence the appeal.

The following questions arose before the Court:-

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

Disposing of the appeal, the Court

HELD: I. Whenever there is repeal of an enactment, the
consequences laid down in Section 6 of the General Clauses Act, 1897 will F
follow unless, as the Section itself says, a different intention appears. In
the case of a simple repeal there is scarcely any room for expression of a
contrary opinion. But when the repeal is followed by fresh legislation on
the same subject the Court has to look undoubtedly to the provisions of
the new Act, but only for the purposes of determining whether they G
indicate a different intention. The line of enquiry would be, not whether
the new Act expressly keeps alive old rights and liabilities, but whether it
manifests an intention to destroy them. Therefore, it is not possible to
subscribe to the broad proposition that Section 6 of the General Clauses
Act is ruled out when there is repeal of an enactment followed by a fresh
legislation. Section 6 would be applicable in such cases also unless the new H
306 SUl'REME COl',RT RLl'OR IS 120061 2 S.C.R.

A legislation manifests an intention incompatible with or contrary to the
provisions of the Section. 1321-E, GI ..,_.

M.S. Shivunundu v. Kurnuwku S1u1e Roud Trunspurt Curpuraliun,
J19801 I SCC 149, Basur.t Singh v. Rampaf Singh. AIR (1919) Oudh 217
and Keshavan Madhava Menon v. Slale of Bombay, I 1951 I SCR 228, referred
B to.

Kay v. Goodwin, (18:10) 6 Bing. 576, Bunees v. Effison, (1829) 9 Band
C 750, Director of Public Works v. Ho Pu Sang, (1961) All ER Vol. 2 731,
Bear Lake and River Waterworks and frrigalion Cu. v. Garland, 164 US I,
41 L. ED 327, Commonweallh v. Gross, 21 A.2d 238, 240, 145 Pa. Super.
c 92, S1a1e v. Bemis, 45 Neb. 724, 64 N.W. 348, SIUle v. Gray, 40 Or. App.
799, 596 P2d 611 (1979), George v. City uf Asheville, 80 F2d SO (CCA4
1936), Slate v. Buard of Appeals, 21, Wis 2d 516, 124 NW2d 809 (1963)
.....
and Penlheny, Ltd v. Governmenl of Virgin Islands, Federal Reporter 2d
Series Vol. 360 pg. 786, referred to.
D
2. In case the repeal is followed by fresh legislation on the same
subject the Court has to look to the provisions of the new Act for the
purpose of determining whether they indicate a different intention. The
question is not whether the new Act expressly keeps alive old rights and
liabilities but whether it manifests an intention to destroy them. The
E application of this principl•e is not limited to cases where a particular form
of words is used to indicate that the earlier law has been repealed. It is
both logical as well as in accordance with the principle, upon which the
rule as to implied repeal rests, to attribute to that legislature which affects
repeal by necessary implication the same intention as that which would
attend the case of an expr•ess repeal. Where an intention to effect repeal
F is attributed to a legislature then the same would attract the incident of
saving found in Section 6 of the General Clauses Act, 1897. 1324-B, q

State of Punjab v. Mohar Singh, 119551 I SCR 893, Brihan Maharash/ra
• -
Sugar Syndicale v. Janardan, AIR (1960) SC 794 and Slale ofOrissa v. M.A.
Tufloch, 1196314 SCR 461, relied on.
G
3. When there is repeal and simultaneous reenactment, Section 6 of
the General Clauses Act would apply to such a case unless contrary
intention has been gathered from the repealing Act. Section 6 would be ~

applicable in such cases unless the new legislation manifests an intention
H inconsistent with or contrary to the application of the Section. When the
GAMMON INDIA LTD. v. CHIEF SECRETARY 307
repeal is followed by a fresh legislation on the same subject, the Court A
would undoubtedly have to look to the provisions of the new Act only for
the purpose of determining whether the new Act indicates a different
intention. The object of repeal and reenactment is to obliterate the
Repealed Act and to get rid of certain obsolete matters. [325-A-C(

Munshi/al Ben/ram Jain Glass Works v. S.P. Singh, (1971) II S.C.J. 307, B
Qudrat Ullah v. Municipal Board, [197411SCC202 and India Tobacco Co.
ltd. v. cro. [1975) 3 sec 512, relied on.

4. 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 C
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 D
by applying the new procedure.

Commissioner of Income Tax v. Shah Sadiq, AIR (1987) SC 1217,
Gurcharan Singh Baldev Singh v. Yashwant Singh, [1992) 1 SCC 428 and
Gajraj Singh v. State Transport Appellate Tribunal, [1997) 1 SCC 650, relied
on. E
Craies: Statute Law, Hals bury 's Laws of England, 4th Edn. Crawford:
Interpretation of Law, Francis Bennion: Statutory Interpretation 2nd Edn.,
G.P. Singh: Principles of Statutory /nterpretatior., 2006 Edn., Sutherland:
Statutory Construction 3rd Edn., Vol. I By Horack, referred to.
F
6. In the instant case, there is a simultaneous repeal and reenactment
and the Andhra Pradesh Value Added Tax Act, 2005 clearly saves the
earlier provisions in toto. Consequently, rights and liabilities accrued or
incurred under the Andhra Pradesh General Sales Tax Act, 1957 shall
continue even after it is repealed. [328-G [
G
7. Whenever there is repeal of an enactment and simultaneous
1 reenactment, the reenactment is to be considered as reaffirmation of the
-i 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 H
308 Sl 'PRE VIE COl:RT REPORTS (2006] 1 S.C.R.

A Act. Such incompatibility will have to be ascertained from a consideration
of the relevant provisions of the reenacted enactment and the mere absence
of a saving clause is, by itsdf, not material for consideration of all the
relevant provisions of the ne'" 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
B statute intact or modify or to obliterate them altogether.
(328-H; 329-A, Bl

8. The Assistant Commissioner (Commercial Taxes) was fully
justified in initiating and completing the proceedings under the A.P.G.S.
C Tax Act even after it is repealed. [329-CJ

CIVIL APPELLATE JURISDICTION: Civil Appeal No. 1148 of2006.

From the Judgment and Order dated 20.8.2005 of Andhra Pradesh High
Court in Writ Petition Nos. 16415, 16213.2005.

D WITll

C.A. No. 1149/2006.

Jaideep Gupta, P.H. Parekh, Ms. Mridula Ray Bhardwaj, Sameer Parekh,
Vijay Kedia (for P.H. Parekh & Co.) for the Appellant.
E •
Anoop G. Chaudhary, Jun,: Chaudhary, Manoj Saxena, Jetendra Singh,
Amit Meharia and Mohanprasad Meharia for the Respondents.

The Judgment of the Court was delivered by

F DALVEER BHANDARI, J. Leave granted.

The principal question wh ch falls for adjudication in these appeals is
regarding the jurisdiction of the Assistant Commissioner of Commercial Taxes,
Warangal Division, Andhra Pradesh in initiating and completing penalty
proceedings under the Andhra Pradesh General Sales Tax Act, 1957 (for
G short A.P.G.S. Tax Act) after its repeal.

We are not adjudicating the merits of the controversy involved in these
appeals but are confining our judgment to the limited question of the
jurisdiction of the Assistant Commissioner in initiating proceedings under the
-
H said A.P.G.S. Tax Act after its repeal. The brief facts which are imperative
- :y(.
GAMMON INDIA LTD.''· ClllEF SECRET ARY IDALVEER BHANDARI. J.]

to dispose of these appeals are as under:

The appellant, Mis Gammon India Ltd. is a construction company. The
309

A

appellant after obtaining construction contract in the State of Andhra Pradesh
applied to a registered dealer for the purposes of Section 58 of the A.P.G.S.
Tax Act for concessional tax available to the registered dealers, purchasing
from other registered dealers in the State of Andhra Pradesh. According to B

-
the respondents, the appellant had falsely issued Form G and claimed reduced
I rates of tax from the sellers whereas according to the appellant, G-2 Form
';- was issued by the Sales Tax authorities and the form specifically enumerated
commodities/items which were entitled to a concessional tax. One of the
items specifically enumerated therein was 'cement'. Relying on the said G- C
2 Fonn, as was also the case with all other construction companies in the
. '
. State, the appellant while purchasing 'cement' for manufacture of ready mix
concrete, obtained the benefit of a lower tax.

On 26.2.2005, two show cause notices, being PR No.6/2004-05 and PR
No. 7/2004-2005, were issued by the Assistant Commissioner, Commercial D
Taxes. In order to properly comprehend the controversy involved in this case
one such notice PR No. 6/2004-2005 is set out as under:

"GOVERNMNT OF ANDHRA PRADESH
COMMERCIAL TAXES DEPARTMENT
E
Office of the Deputy Commissioner (CT)
Warangal Division, Warangal

P.R. No.6/2004-05, Dated: 26.0'.'-.2005

NOTICE F
Please take notice that Mis Gammon India Limited. Paloncha a
registered dealer vide RC. No. WGL/09/1/2440/95-96 under APGST
Act and assesses on the rolls of Commercial Tax Officer, Kothagudem.

They obtained G2 license vide G2 WGL/09/1/23/2001-02 from G
-.:. Commercial Tax Officer, Kothagudem to purchase raw materials,
consumable, sub-assembly parts and packing materials at concessional
rates for use in the manufacture or processing the goods in side the
state under Section SB of the APGST Act.

In terms of G. 0. Ms. No. 496, Rev.(CT-11) Dept., 17.07.2001, H
310 SUPREME COURT REPORTS 120061 2 S.C.R.

A the commodity "CEMENT" was made ineligible to purchase within
....
the state of AP at concessional rate of tax against Form-G under
Section 58 of the APGST Act.

In spite of tle fact that Mis. Gammon India Limited, Paloncha
had effected purchases of CEMENT from local registered dealers at
B concessional rate of tax against Form-G as ascertained from the Deputy
Commissioner (CT), Nalgonda for the year 2002-03 as detailed below.

Name of the Se' ler Sugar Cement Ltd., Matampally
•'
Amount Rs.29,26,200.00
c Thus, it is pnved beyond doubt that Mis. Gammon India Limited,
Paloncha had falsely issued Form-G and claimed reduced rate of tax
from the sellers.

Therefore, it is proposed to levy a penalty of Rs.23.40, 960 (Rupees
Twenty Three Lakhs Forty Thousand Nine Hundred and Sixty only)
D
being five times the tax due on the above respective transactions for
the year 2002-03 under Section 7A(2)(ii) of APG ST Act.

Objections if any against the proposed levy of penalty may be
filed in person or through authorized representative touching upon all
the material evidence before the undersigned with in (7) days of
E
receipt of this notice. Failing which proposed levy of penalty will be
confirmed without further notice.

ASSISTANT COMMISSIONER (CT)

(INTELLIGENCE AND LTU)
F
WARANGAL DIVISION, WARANGAL.
To
Mis. Gammon India Limited,
Paloncha."
G The appellant, after a few weeks, received two more notices PR No. I/
2005 and PR No. 212005 on 12.4.2005 from the Assistant Commissioner,
Commercial Taxes. In these notices also it is incorporated that the appellant
had falsely issued Form-G and claimed reduced rate of tax from the sellers.

The appellant also received a letter dated 19th September. 2005 from
H the !IC Executive Engineer, I & CADD, Irrigation Division, Bhadrachalam
GAMMON INDIA LTD. 1·. CHIEF SECRETARY [DAL VEER BHANDARI, J] 311

asking the appellant to get clearance of sales tax due for Rs.4,06,83,207/- A
from the Dy. Commissioner (CT) Warangal Division, Warangal and produce
the clearance certificate.

The Andhra Pradesh Value Added Tax Act (for short A.P.V.A. Tax
Act) came in force from 1st April, 2005 in the State of Andhra Pradesh and
consequently the A.P.G.S. Tax Act was repealed. B
The notices were issued to the appellant by the Assistant Commissioner
of Commercial Taxes, respondent no.3, calling upon the appellant to explain
why maximum penalty of five times permitted under the Act be not imposed
for falsely issuing the G-2 form and claiming reduced rate of tax from the C
sellers.

The proceedings were initiated under Section 7A(2) (ii) of the A.P.G.S.
Tax Act. The said Section reads as under :

"7 A(2)(ii). Burden of proof and liability of the dealer to pay (tax and D
penalty) :

(I) xxx xxx xxx

(2) Where a dealer issues or produces a false bill, voucher, declaration,
certificate or other document with a view to support or make any
claim that a transaction of sale or purchase effected by him or any E
other dealer, is not liable to be taxed or is liable to be taxed at a
reduced rate, the assessing authority shall on detecting such issue or
production, direct the dealer issuing or producing such document to
•' pay as penalty:

(i) in the case of first such detection, three times the tax due in F
respect of such transaction; and

(ii) in the case of a second or subsequent detection, five times the tax
due in respect of such transaction: Provided that before issuing any
direction for the payment of the penalty under this section, the
assessing authority shall give to the dealer an opportunity of making G
representation against the levy of such penalty."
I
•
In reply to the abovementioned notices. a detailed objection petition
was submitted by the appellant, according to which none of the essential
conditions prescribed under Section 58(2) of APGS Tax Act was violated by H
312 SliPREM -: COURT REPORTS [2006J 2 S.C.R.

A the Appellant.
The Assistant Commissioner of Commercial Taxes after com.idcring
the grievance of the appellant confirmed the additwnal tax and penalty. The
appellant has filed the appeals before the Deputy Commissioner (Appeals)
against issuance of the notices which are pending adjudication, but the
B appellant's prayer for staying the penalty proceedings was declined.

The appellant, aggrieved by the said order, also filed a writ petition
which was heard by a Division Bench of the High Court. The Division Bench
.
....
examined the question whether the Assistant Commissioner of Commercial
C 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 the A.P.V.A.
Tax Act with effect from 1.4.2005. The High Court while dismissing the writ
petition held that the Assistant Commissioner was not prohibited from initiating
and completing the said proceedings.

D The Appellant, aggrieved Jy the said judgment, has filed Special Leave
Petitions under Article 136 before this Court. For examining the jurisdiction
of the Assiatant Commissioner of Commercial Taxes in initiating and
completing the penalty proceedings under the A.P.G.S. Tax Act, it is necessary
to note the relevant provisions of the Act.

E Section 80 of the A.P.V.A. Tax Act reads as under :

"80( I) The Andhra Pradesh General Sales Tax Act, 1957 is hereby
repealed provided that such repeal shall not effect the previous
operation of the said Act or section or any right, title, obligation or
liability already acquired, accrued or incurred thereunder and subject
F thereto, anything done or any action taken (including any appointment,
notification, notice, order, rule from, regulation, certificate, license or
permit) in the exercise of any power conferred by said Act or Section
shall be deemed to have been done or taken in the exercise of the
powers conferred by or under this Act, as if this Act was in force on
the date on which such thing was done or action was taken and all
G
arrears of tax and other amounts due at the commencement of this
Act may be recovered as if they had accrued under this Act.

(2) Notwithstanding anything contained in sub-section (I), any
application, appeal, revision or other proceedings made or preferred
H to any officer or authority under the said Act or section and pending
GAMMON INDIA LTD. v. CHIEF SECRETARY (DAL VEER BHANDARI, J.] 313

¥ at the commencement of the Act, shall, after such commencement, be
transferred to and disposed of by the officer or authority who would
A

have had jurisdiction to entertain such application, appeal, revision or
other proceedings was made or preferred.

(3) Upon such repeal of the Andhra Pradesh General Sales Tax Act,
1957 the provisions of Sections 8, 8-A, 9 and 18 of the Andhra B

-
Pradesh General Clauses act, 1891 shall apply,"
;
··~·
Section 80(3) of the A.P.V.A. Tax Act provides for the application of
Section 8 of the Andhra Pradesh General Clauses Act, 1891 on the repeal of
the APGST Act, 1957. Section 8 of the A.P. General Clauses Act, 1891 deals
with the effect of repealing the Act, reads as under : c
"Effect of Repealing an Act -Where any Act to which this Chapter
applies, repeals any other enactment, then the repeal.shall not :

(a) affect anything done or any offence committed, or any fine or
penalty incurred or any proceedings begun before the commencement D
of the repealing act; or

~ (b) revive anything not in force or existing at the time at which the
repeal takes effect; or

( c) affect the previous operation of any enactment so repealed or
E
anything duly done or suffered under any enactment so repealed; or

(d) affect any right, privilege, obligation or liability acquired, accrued
or incurred under any enactment so repealed; or
" ( e) affect any fine, penalty. forfeiture or punishment incurred in respect
of any offence committed against any enactment so repealed; or F
(t) affect any investigation, legal proceeding or remedy in respect of
any such right, privilege, obligation, liability, fine, penalty, forfeiture
or punishment as aforesaid; and any such investigation, legal
proceeding or remedy may be instituted, continued or enforced, any
such fine, penalty, forfeiture or punishment may be imposed, as if the G
repealing Act had not been passed."

4 The Court observed that even in the absence of a provision similar to
Section 80(3) of the A.P.V.A. Tax Act, Section 8 of the A.P.G.S. Tax Act,
)
which is analogous to Section 6 of the General Clauses act, is not confined
H
314 SUPREME COURT REPORTS [200611 S.CR.

A to mere repeal of a statute but extends to a repeal followed by fresh legislation,
unless a different intention appears from the new enactment and that is for
the Court to enquire whether the fresh legislation had preserved the rights
and liabilities created under the old statute or whether their intentment was
to obliterate them. This difficulty does not arise in the present case in as
B much as Section 80(3) of the A.P.V.A. Tax Act specifically makes Section
8 of the A.P. General Clauses Act, 1891 applicable on the repeal of the
A.P.G.S.T. Act.

Mr. Jaideep Gupta, learned senior Advocate appearing for the appellant, ..
has drawn our attention to Mis M.S. Shivananda v. Karnataka State Road
C Transport Corporation and Ors., (1980] I SCC 149. A careful reading of the
said judgment also leads to the same conclusion that after repeal of the Act
whether it applies or_ not depends on the intention of the legislature which is
reflected by the language used in the subsequent Act passed by the legislature.
The Court also observed in this case that if, however, the right created by the
statute is of an enduring character and has vested in the person, then that
D right cannot be taken away because the statute by which it was created has
been repealed.

Mr. Gupta further submitted that liability arises only after it is quantified .-
in accordance with law. In the instant case, unless the liability has not been
E properly quantified in acco::dance with the A.P.G.S. Tax Act, the same cannot
be imposed. We have examined the contention of Mr. Gupta in the light of
Mis M.S. Shivananda 's case (supra), but on proper analysis of the
aforementioned judgment, we do not find any merit in the submission of the
learned counsel for the appellant.

F Mr. Anoop G. Chaudhary, the learned senior Advocate appearing for
the respondent submitted that the liability is incurred from the point when the
forged documents have been filed by the appellant and not from the time
when the show cause notice was issued.

Mr. Choudhary further submitted that m the matter of this nature, the
G tax collecting authority has no option but to impose penalty in accordance
with the statute. Mr. Choudhary also submitted that the r.:spondent not only
had the jurisdiction to initiate and complete the proceedings in the repealed
Act but the penalty imposed by him was also clearly in consonance with the
provisions of the Act.

H We have noticed rel1~vant facts and rival contentions. Now, in order to
~~

GAMMON INDIA LTD."· CHIEF SECRETARY [DAL VEER BHANDARI. J] 315

.,, ascertain the correct legal position it has become imperative to examine A
relevant provisions and decided cases, dealing with the ambit and scope of
repeal and reenactment of a statute. Since the General Clauses Act, 1897 is
largely based on the English Interpretation Act, 1889, it is appropriate to deal
with English and other relevant cases throwing light on issues involved in the
case.
B
According to the law of England, as it stood before Interpretation Act
~
, of 1889, the effect of repealing a statute was to obliterate it as completely
from the records of Parliament as if it had never been passed, except for the
+ purpose of those actions, which were commenced, prescribed and concluded
while it was an existing law.
c
A repeal therefore, without any saving clause would destroy any
proceeding whether or not yet begun or whether pending at the time of
enactment of the Repealing Act and not already prosecuted to a final judgment
so as to create a vested right.
D
The legal position which existed in England before Section 38(2) was
inserted in the Interpretation Act of 1889 is reflected from the following two
! ....,
English cases.
+
In Kay v. Goodwin, reported in (1830) 6 Bing. 576 =English Reports
(Volume 130) at page 1403, Tindal, Chief Justice observed that the effect of E
repealing a statute is to obliterate it as completely from the records of the
Parliament as if it had never been passed; and it must be considered as a law
that never existed except for the purpose of those actions which were
commenced, prosecuted and concluded whilst it was an existing law.

F
... Lord Tanterden in Surtees v. Ellison - (1829) 9 B & C. 750 =English
Report (Volume 109) at page 278 observed that when an Act of Parliament
is repealed, it must be considered (except as to transactions past and closed)
as if it had never existed.

In England, to obviate such result a practice was developed to insert a
saving clause in the repealing statute with a view to preserve rights and G
liabilities already accrued or incurred under the repealed enactment. When it

- ~
was found cumbersome to insert a saving clause in every statute, then in
order to dispense with the necessity of having to insert a saving clause on
each occasion, Section 38(2) was incorporated in the Interpretation Act of
1889. Section 6 of the Indian General Clauses Act is on the same lines as H
316 s,:PRE\1F COURT REPORTS [20061 2 S.C.R.

A Section 38(2) of the Interpretation Act of 1889. Section 38(2) of the
Interpretation Act, 188<1 reads as under: ~

38. Effect of repeal in future Acts.

(I) xxx xxx xxx
B (2) \Vhere this Act or any Act passed after the commencement
of this Act repeals any other enactment,. then, unless the
contrary intention appears. the repeal shall not

(a) revive anything not in force or existing at the time at which
the repeal takes effect; or
c
(b) affect the previous operation of any enactment so repealed
or anything duly done or 5uffered under any enactment so
repealed; or

(c) affect any right, privilege. obligation, or liability acquired,
D accrued, or incurred under any enactment so repealed; or

(d) affect any penalty, forfeiture, or punishment incurred in
respect of any offence committed against any enactment so
repeal1!d: or .,.

E (e) affect any investigation, legal proceeding, or remedy in
respect of any such right, privilege, obligation, liability,
penalty, forfeiture, or punishment as aforesaid;

and any such investigation, legal proceeding, or remedy may be
instituted, continued, or enforced, and any penalty, forfeiture, or
F punishment may be imposed, as if the repealing Act had not been
passed."

The legal position dramatically changed after incorporation of Section
38 (2) in the English Interpretation Act, 1889. The following case is illustrative
of the change which took place after incorporation of the said provision.
G
Lord Morris of Borth-y-Gest, while interpreting Section I 0 of the·
Interpretation Ordinani:e of Hong Kong, which corresponds with Section 38
of the Interpretation Act of 1889 in an appeal from the Judgment of the
Supreme Court of Hong Kong, in the matter of Director of Public Works v.
H Ho Po Sang, reported in [1961] All England Law Reports Vol. 2 pg. 731,
observed as under:
GAMMON INDIA LTD. v. CHIEF SECRETARY [DAL VEER BHANDARI, J .] 3 J7

"It may be, therefore, that, under some repealed enactment, a A
right has been given but that, in respect of it, some investigation or
legal proceeding is necessary. The right is then unaffected and
preserved. It will be preserved even if a process of quantification is
necessary. But there is a manifest distinction between an investigation
in respect of a right and an investigation which is to decide whether B
some right should or should not be given. On a repeal, the former is
preserved by the Interpretation Act. The latter is not."

I When we look to the American law, we find basic similarity in the
~· scope and ambit of the provisions relating to repeal and reenactment of the
statute. We deem it appropriate to refer some relevant American judgments. C
In Bear Lake & River Waterworks & Irrigation Co. v. Garland, 164 US
I, 41 L Ed 327, the U.S. Supreme Court has held that the reenactment of a
statute which has been repealed by specific provision, or by implication from
later legislation, inv.alidates the previous repeal and restores the statute to
· effective operation. D
In that very case, the Court held that a so-called "simultaneous repeal
and reenactment" is a misnomer, for there is no repeal by implication

+ effectuated of the original act, and even though the "repeal" is declared by
specific provision in the later enactment the courts will construe the unchanged
provisions as being continuously in force. E
In Commonwealth. v. Gross - 21A.2d238, 240, 145 Pa.Super. 92 it was
observed that insofar as Workmen's Compensation Act of 1939 is a
reenactment of Workmen's Compensation Act of 1937, it is "continuance" of
such act, but insofar as act of 1939 is in conflict with act of 1937, it is a
"repeal" of the act of 193 7. F
In State v. Bemis 45 Neb. 724, 64 N.W. 348, the Court held that the
rule seems to be settled in this state that the simultaneous repeal and
reenactment of a statute in terms or in substance is a mere affirmance of the
original act, and not a "repeal" in the strict or constitutional sense of the G
term.

The Court further held in this case that as a rule of construction the
simultaneous repeal and reenactment of the same statute in terms or in
substance is a mere affirmance of the original act, and not a repeal in the
strict and constitutional sense of the term. Where the reenactment is in the H
~-

318 SUPREME COURT REPORTS (2006] 2 S.C.R.

A words of the old statute, and was evidently intended to continue the
uninterrupted operation of such statute, the new act or amendment is a mere
continuation of the former act, and not in a proper sense a repeal.

In State v. Gray, 40 Or App 799, 596 P2d 611(1979) the Court held
that when the legislature incorporates in one statute matter that is included in
B another, a subsequent repeal of the statute containing the incorporated matter
does not necessarily affect the statute in which it has been incorporated, as
the question is one of the legislative intent. In absence of evidence of a
contrary intent, the legislature will be presumed to have intended the repeal 1
not to affect the statute into which the matter is incorporated.

c In George v. City of Asheville, 80 F2d 50 (CCA4 1936) the Court
observed that the reenactment of a statute is a continuation of the law as it
existed prior to the reenactm1~nt as far as the original provisions are repeated
without change in the reenactment. Consequently, an intermediate statute
which has been superimposed upon the original enactment as a modification
D of its provisions is likewise not repealed by the reenactment of the original
statute, but is construed to be in force to modify the reenacted statute as it
modified the original enactment.

In State v. Board of Appeals, 21, Wis 2d 516, 124 NW2d 809 (1963)
the Court held that the continuous operation of a statute was not interrupted
E by repeal and reenactment at same time in substantially the same language.

In the case of Pentheny, Ltd v. Government of Virgin Islands-Federal
Reporter 2d Series Vol. 360 pg. 786, the U.S. Court of Appeals has observed
as under:

F "Simultaneous repeal and re-enactment of substantially the same
statute, or part thereof, is a substitution and not a repeal, and the
statute, or part thereof, thus substituted is construed as a continuation
of the original provisions to the extent re-enacted and jurisdiction of
administrative agency under such statute is not disturbed as to those
provisions which were continued under the new statute."
G
The legal position in Australia is also almost similar. The Interpretation
Act of 1984 of Australia also has similar provisions. The relevant portion of
Section 37(1) of the Act reads as under:

"37(1) of the Interpretation Act provides:
H
GAMMON INDIA LTD. v. CHIEF SECRETARY [DAL VEER BHANDARI, J ] 3 J9

"Where a written law repeals an enactment, the repeal does not, A
unless the contrary intention appears

(b) affect the previous operation of the enactment repealed or anything
duly done or suffered under that enactment;
B
(c) affect any right, interest, title, power or privilege created, acquired,
.. accrued, established or exercisable or any status or capacity
~ existing prior to the repeal;

(f) affect any investigation, legal proceeding or remedy in respect of c
any such right, interest, title, power, privilege, status, capacity,
duty, obligation, liability, burden of proof, penalty or forfeiture,
and any such investigation, legal proceeding or remedy may be
instituted, continued, or enforced, and any such penalty or
forfeiture may be imposed and enforced as ifthe repealing written D
law had not been passed or made."

+ 37(2) The inclusion in the repealing provisions of any enactment
of any express saving with respect to the repeals effected thereby
·shall not be taken to prejudice the operation of this section with
respect to the effect of those repeals." E
' Analysis of the provisions and some decided cases of England and
J America reveal the existence of similar provisions and interpretation in the
respective countries.

Section 6 of the General Clauses Act, 1897 is predominantly based on F
Section 38 of the English Interpretation Act, 1889. We have already reproduced
Section 38 of the English Interpretation Act, 1889. In order to discern and
·1 evaluate the strong similarity between the Indian and English Law on this
subject, we deem it appropriate to set out Section 6 of the Indian General
~
Clauses Act, 1897.
1 "6. Effect of repeal.- Where this Act, or any Central Act or
G
Regulation made after the commencement o this Act, repeals any
~ enactment hitherto made or hereafter to be made, then, unless a
different intention appears, the repeal shall not

(a) revive anything not in force or existing at the time at which the H
320 SUPREME COURT REPORTS [2006] 2 S.C.R.

A repeal takes effect; or
(b) affect the previous operation of any enactment so repealed or
anything duly done or suffered thereunder; or
(c) affect any right, privilege, obligation or liability acquired, accrued
or incurred under any enactment so repealed; or
B
(d) affect any penalty, forfeiture or punishment incurred in respect
of any offence committed against any enactment so repealed; or
(e) affect any hvestigation, legal proceeding or remedy in respect of
such right, privilege, obligation, penalty, forfeiture or punishment
c as aforesaid.

and any such investigation, legal proceeding or remedy may be
instituted, continued or enforced, and any such penalty, forfeiture or
punishment may be imposed as if the repealing Act or Regulation
had not been passed."
D Following decided Indian cases would reveal, that Indian courts have
interpreted Section 6 of the said Act in the same manner as the similar
provisions have been interpreted by the English and American courts.

In Basant Singh v. Rampa/ Singh, AIR (1919) Oudh 217, it has been
E held that where an Ac-: repeals a previous Act and provides that all orders
issued under the repealed Act shall, so far as may be, be deemed to have been
issued under the new Act, or is repealed with proviso 'except as to things
done under it' the provision is designed to safeguard the validity of orders,
appointments, etc., issued under the repealed Act and not to give retrospective
effect to the new Act.
F
A Seven Judge Bench of this Court by majority laid down in Keshavan
Madhava Menon v. The State of Bombay, [ 1951] SCR 228, that the Court
was concerned with the legality of the prosecution of the appellant for
contravention of the Indian Press (Emergency Powers) Act, 1931. The offence
had been committed before the Constitution came into force and a prosecution
G launched earlier was pending after January 26, 1950. The enactment which
created the offence was held to be void under Article 19( I )(a) read with
Article 13 as being inconsistent with one of the Fundamental rights guaranteed
by Part III of the Constitution. In the circumstances, the point that was '
debated before this Court was whether the prosecution could be continued
H after the enactment became void. In this case, the Court by a majority judgment
GAMMON INDIA LTD.'" CHIEF SECRETARY [DAL VEER BHANDARI, .I.] 32 J

held that the Constitution was prospective in its operation and that Art. 13( 1) A
would not affect the validity of these proceedings commenced under pre-
Constitution laws which were valid up to the date of the Constitution coming
into force, for to hold that the validity of these proceedings were affected
would in effect be treating the Constitution as retrospective. Therefore, it was
considered that there was no legal objection to the continuance of the B
prosecution.

j The controversy in issue was dealt with comprehensively with meticulous
j precision by a Constitution Bench of this Court in State of Punjab v. Mohar
Singh, [1955] 1 SCR 893. Respondent Mohar Singh filed a claim as an
evacuee under the East Punjab Refugees (Registration of Land Claims) Act, C
1948. The claim was investigated into and it was found to be false; it was
held to be an offence under the Act. At the trial, on his confession, the
respondent was· convicted and sentenced to imprisonment. On suo motu
revision, the District Magistrate found the sentence to be inadequate and
referred the case to the High Court. The High Court found that since the
ordinance was repealed, he could not be convicted under Section 7 of the D
Act. This Court, on appeal, reversed the decision and upheld the conviction
applying Section 6 of the General Clauses Act.

The principle which has been laid down ,in this case is that whenever
there is a repeal of an enactment, the consequences laid down in section 6 of
the General Clauses Act will follow unless, as the section itself says, a different E·
intention appears. In the case of a simple repeal there is scarcely any room
for expression of a contrary opinion. But when the repeal is followed by
fresh legislation on the same subject we would undoubtedly have to look to
the provisions of the new Act, but only for the purpose.s of determining
whether they indicate a different intention. The line of enquiry would be, not p
whether the new Act expressly keeps alive old rights and liabilities but whether
it manifests an intention to destroy them. We cannot therefore, subscribe to
the broad proposition that Section 6 of the General Clauses Act is ruled out
when there is repeal of an enactment followed by a fresh legislation. Section
6 would be applicable in such cases also unless the new legislation manifests
an intention incompatible with or contrary to the provisions of the section. G
In the case of Brihan Maharashtra Sugar Syndicate v. Janardan, AIR
)
'\ (1960) SC 794, it was observed as under:

"Section 6 of the General Clauses Act provides that where an Act
is repealed, then, unless a different intention appears, the repeal shall H
322 SUPRl:ME COURT REPORTS [2006 I 2 S.C.R.

A not affect any right or liability acquired or incurred under the repealed
enactment or any legal proceeding in respect of such right or liability
and the legal proceec ing may be continued as if the repealing Act
had not been passed. There is no dispute that Section 153-C of the
Act of 1913 gave ce•1ain rights to the share-holders of a company
and put the company as also its directors and managing agents under
B certain liabilities. The application under that section was for
enforcement of these rights and liabilities. Section 6 of the General
Clauses Act would th·~refore preserve th<:: rights and liabilities created
by Section 153-C of the Act of 1913 and a continuance of the
proceeding in respect thereof would be competent in spite of the
c repeal of the Act of 1913, unless of course a different intention could
be gathered."

A Constitution Bench of this Court in State of Orissa v. M.A. Tulloch
and Co., (1963] 4 SCR 461, :1lso had an occasion to examine the controversy
regarding repeal of the Act. The submission in this case was that the
D supersession of the Orissa Act by the Central Act was neither more nor less
than a repeal. The reference was made to Section 6 of the General Clauses
Act, 1897 which has been reproduced (supra). In the said case, the submission
was that the interpretation of the Section was two-fold: ( 1) the word 'repeal'
used in the opening paragraph was not confined to express repeal but that the
E word was comprehensive enough to include cases of implied repeals; (2) it
was submitted that if the expression 'repeal' in Section 6(b) be deduced as
being confined to express repeals, still the principle underlying Section 6 was
of general application and capable of being attracted to cases of implied
repeals also.

F In MA. Tulloch 's, case (supra), the Court aptly observed that we have
. to inquire the principle on which the saving clause in Section 6 is based. It
is manifest that every later enactment which supersedes an earlier one or
pouts an end to an earlier state of the law is presumed to intend the continuance
of rights accrued and liabilities incurred under the superseded enactment
unless there were sufticien: indications - express or implied - in the later
G enactment designed to completely obliterate the earlier state of the law.
The next question is whether the application of that principle could or
ought to be limited to cas•~s where a particular form of words is used to
indicate that the earlier law has been repealed. The entire theory underlying
H implied repeals is that there is no need for the later cnac.tment to state in
GAMMON INDIA LTD. v. CHIEF SECRETARY [DAL VEER BHANDARl,J] 323

express terms that an earlier enactment has been repealed by using any A
particular set of words or form of drawing but that if the legislative intent to
supersede the earlier law is manifested by the enactment of provisions as to
effect such supersession, then there is in law a repeal notwithstanding the
absence of the word 'repeal' in the later statute. Now, ifthe legislative intent
to supersede the earlier law is the basis upon which the doctrine of implied B
repeal is founded, could there be any incongruity in attributing to the later
legislation the same intent which S~ction 6 presumes where the word 'repeal'
i is expressly used. So far as statutory construction is concerned, it is one of
) the cardinal principles of the law that there is no distinction or difference
between an express provision and a provision which is necessarily implied,
for it is only the form that differs in the two cases and there is no difference C
in intention or in substance. A repeal may be brought about by repugnant
legislation, without even any reference to the Act intended to be repealed, for
once legislative competence to effect a repeal is posited, it matters little
whether this is done expressly or inferentially or by the enactment of repugnant
legislation. If such is the basis upon which repeals and implied repeals are D
brought about it appears to us to be both logical as well as in accordance with
the principles upon which the rule as to implied repeal rests to attribute to
that legislature which effects a repeal by necessary implication the same
intention as that which would attend the case of an express repeal. Where an
intention to effect a repeal is attributed to legislature then the same would,
in our opinion, attract the incident of the saving found in Section 6 for the E
rules of construction embodied in the General Clauses Act are, so to speak,
the basic assumptions on which statutes are drafted.

The Court examined the ambit and scope of Section 6 of the General
Clauses Act, 1897 in Tulloch 's case. According to the ratio of the said
judgment, the principal underlying Section 6 of the General Clauses Act, F
1897 is that every later enactment which supersedes an earlier one or puts an
end to an earlier state of the law is presumed to intend the continuance of
rights accrued and liabilities incurred under the superseded enactment unless
there were sufficient indications expressed or implied in the later enactment
designed to completely or\iterate the earlier state of the law. G
In view of the interpretation what follows is absolutely clear that unless
a different intention appears in the repealing Act, any legal proceeding can
· be instituted and continued in respect of any matter pending under the repealed
Act as if that Act was in force at the time of repeal. In other words, whenever
H
324 SUPREME COURT REPORTS [2006) 2 S.C.R.

A there is a repeal of an enactment the consequences laid down in Section 6 of
the General Clauses Act will follow unless, as the section it~elf says, a different
intention appears in the repealing statute.

In case the repeal is followed by fresh legislation on the same subject
the court has to look to the provisions of the new Act for the purpose of
B detennining whether they indicate· a different intention. The question is not
whether the new Act expressly keeps alive old rights and liabilities but whether
it manifests an intention to destroy them. The application of this principle is
not limited to cases where a particular fonn of words is used to indicate that
the earlier law has been rep1!aled. As this Court has said, it is both logical as
C well as in accordance with the principle, upon which the rule as to implied
repeal rests, to attribute to that legislature which effects a repeal by necessary
implication the same intention. as that which would attend the case of an
express repeal. Where an intention to effect a repeal is attributed to a legislature
then the same would attract the incident of saving found in Section 6.

D In the case of Munshi/al Beniram Jain Glass Works v. S. P. Singh,
(1971) II S.C.J. July- December p. 307, this Court held that under Section 6
would apply to a case of repeal even if there is a simultaneous enactment
unless a contrary intention appears from the new enactment.

In Qudrat Ullah v. Municipal Board, Bareilly. (1974] I SCC 202, the
E Court held that the general principle is that an enactment which is repealed
is to be treated, except as to transactions passed and closed, as if it had never
existed. However, the operation of this principle is subject to any savings
which may be made, expressly or by implication, by the repealing enactment.
If a contrary intention appears from the repealing Statute, that prevails.
F '
A three-Judge Bench of this Court in India Tobacco Co. Ltd v. CTO,
(1975] 3 sec 512, held that repeal is not a matter of mere form but is of
substance, depending on the intention of the legislature. If the intention
indicated either expressly or by necessary implication in the subsequent statute
was to abrogate or wipe cff the former enactment wholly or in part, then it
G would be a case of total or pro tanto repeal. If the intention was merely to
modify the fonner enactment by engrafting an exception or granting an
exemption, or by super-adding conditions, or by restricting, intercepting or
suspending its operation, such modification would not amount to a repeal.
Broadly speaking, the principal object of a repealing and amending Act is to
H 'excise dead matter, prune off superfluities and reject clearly inconsistent

••
GAMMON INDIA LTD. v. CHIEF SECRETARY [DAL VEER BHANDARI, J.] 325
·enactments'. A
When there is a repeal and simultaneous reenactment, Section 6 of the
General Clauses Act would apply to such a case unless contrary intention has
been gathered from the repealing Act. Section 6 would be applicable in such
cases unless the new legislation manifests intention inconsistent with or
contrary to the application of the section. When the repeal is followed by a B
fresh legislation on the same subject, the Court would undoubtedly have to
look to the provisions of the new Act only for the purpose of determining
whether the new Act indicates different intention. The object of repeal and
reenactment is to obliterate the Repealed Act and to get rid of certain obsolete
matters.
c
In Commissioner of Income Tax v. Shah Sadiq and Sons, AIR (1987)
SC 1217, this Court observed that a right which had accrued and had become
vested, continued to be capable of being enforced notwithstanding the repeal
of the statute under which that right accrued unless the repealing statute took
away such right expressly or by necessary implication. This is the effect of D
Section 6 of the General Clauses Act, 1897.

_,...., In Mis Gurcharan Singh Baldev Singh v. Yashwant Singh and Ors.
~ (1992) I SCC 428, the Court observed that the objective of Section 6(c) of
the General Clauses Act, 1897 is to ensure protection of any right or privilege
acquired under the repealed Act. The only exception to it is legislative intention E
to the contrary. That is, the repealing Act may expressly provide or it may
impliedly provide against continuance of such right, obligation or liability.

In Gajraj Singh and Ors. v. State Transport Appellate Tribunal and
Ors., [1997] 1 SCC 650, a permit under Section 47(3) of the Motor Vehicles
Act, 1939 was granted to the appellant for a period of 3 years. The Motor F
Vehicles Act, 1988 came into force with effect from 1.7.1989. The question
arose whether the renewal of the permit of the appellant granted under the
repealed Act is a permit under the Act and its operation was saved by Section
217(2)(a) read with sub-section (4) thereof. Therefore, the second renewal
granted under Section 81 was valid in law. There was no need for the appellant G
to obtain a fresh permit under the Act as the renewal is a continuation of the
original permit which is a vested right. The effect of saving provisions in
Section 217(2) (a) is to allow all the permits granted under the Repealed.Act
..,.j to continue after renewal under the Act. Section 217(2) (a) and sub-section
'
(4), thus, obviate the need to obtain fresh permit under the Act and, therefore,
it would be unnecessary. According to the appellant, the Act is not intended H
326 SliPRFME COl'RT REPORTS [2006 J 2 S C.R.

A to lay down that after tile Act came into force, all the holders of stage
carriage permits granted under the Repealed Act would be required to obtain
fresh permits under the Act. Section 6 of the General Clauses Act, 1897 read
with Sections 217(2) (a) and (4) saves operation of all those permits which
were alive when the Act came into force. Consequently, renewals granted
under Section 81 were valid.
B
In Gajraj Singh 's, case (supra), the Court observed that the proceedings
under the Repealed Act would be continued and concluded under the Act as
if the Act was not enacted. The Court observed that four things would emerge
from its operation. One, there must exist a com:sponding provision under the +
C Act pari materia with the Repealed Act; two, the order of permit granted
must exist and be in operation on the day on which the Act had come into
force; three, it must not be inconsistent with the provisions of the Act and,
fourth, the positive acts 1ou!J have been done befon: 1.7.1989. Positive Act
should have been done before the repeal of the Act to further secure any
right. All the four conditions should be satisfied as conditions precedent for
D application of Section 6 of the General Clauses Act.
Number of authors have commented on the 'Doctrine of Repeal'. Craies
in his book on Statute Law stated that in English acts passed after 1889
certain savings are implied by statute in all cases of express repeal, unless a .;
contrary intention appeHs in the repealing Act. The author has stated in his
E book that it had been usual before 1889 to insert provisions to the effect
above stated in all statutes by which express repeals were effected. The result
of this enactment is to make into a general rule what had been common
statutory form, and to substitute a general statutory presumption as to the
effect of an express repeal for the canons of construction hitherto adopted.
F In Halsbury's Laws of England, Fourth Edition the word 'repeal' has
been defined as under ·

"To repeal an Act is to cause it to cease to be a part of the corpus
juris or body O':· law. To repeal an enactment contained in an Act is
to cause it to cease to be in law a part of the Act containing it. The
G
general principi.e is that, except as to transactions past and closed, an
Act or enactment which is repealed is to be treated thereafter as if it
had never existed. However, the operation of the principle is subject
to any savings made, expressly or by implication, by the repealing
enactment, and in most cases it is subject also to the general statutory
H provisions as to the effects of repeal."
GAMMON INDIA LTD. v. CHIEF SECRETARY [DAL VEER BHANDARI,!.] 327

When an Act is repealed then it is treated as revoked or abrogated, and A
removed from what is popularly known as the Statute Book.

The provisions of English Interpretation Act and Indian General Clauses
Act are pari materia as far as Section 38 of English Act and Section 6 of the
Indian Act are concerned. According to Hals bury 's Laws of England (supra),
where any Act after 1889 repeals and reenacts, with or without modification,. B
a previous enactment, then, unless the contrary intention appears, any reference
in any other enactment to the enactment so repealed must be construed as a
i reference to the provision reenacted.
. ..)
Crawford in his book on Interpretation of Law stated that an express
repeal will operate to abrogate an existing law, unless there is some indication c
to the contrary, such as a saving clause. Even existing rights and pending
litigations, both civil and criminal, may be affected although it is not an
uncommon practice to use the saving clause in order to preserve existing
rights and to exempt pending litigation.
D
In the said book it is further stated that often the legislature il!stead of
simply amending a pre-existing statute, will repeal the old statute in its"entirety
,.... and by the same enactment reenact all or certain portions of the pre-existing
~ law. Of course, the problem created by this sort of legislative action involves
mainly the effect of the repeal upon rights and liabilities which accrued under
the original statue. Are those rights and liabilities destroyed or preserved? E
The authorities are divided as to the effect of simultaneous repeals and
reenactments. Some adhere to the view that the rights and liabilities accruing
under the repealed act are destroyed, since the statute from which they sprung
has actually terminated, even though for only a very short period of time.
Others, and they seem to be in the majority, refuse to accept this view of the
F
situation, and consequently maintain that all rights and liabilities which have
·--I accrued under the original statute are preserved and may be enforced, since
the reenactment neutralizes the repeal, thereby continuing the law in force
without interruption. Logically, the former attitude is correct, for the old
statute does cease to exist as an independent enactment, but all practical
considerations favour the majority view. This is so even where the statute G
involved is a penal legislation.

Francis Bennion in his book on Statutory Interpretation (2nd Edn.) says
j
'--\ that where an English Act passed after 1878, repeals and reenacts the enactment
' (with or without modification) then, unless the contrary intention appears,
anything done, or having effect as if done, under the enactment repealed, H

j
328 SUPREME COURT REPORTS (2006) 2 S.C.R.

A insofar as it could have been done under the provision reenacted, has effect
as if done under that provision.

G. P. Singh in his book on 'Principles of Statutory Interpretation', 2006
Edition enumerated the effect of clauses (c) to (e) of Section 6 of the General
Clauses Act is to prevent the obliteration of a statute in spite of its repeal to
B keep intact rights acquired or accrued and liabilities incurred during its
operation and permit continuance or institution of any legal proceedings or
recourse to any remedy which may have been available before the repeal for
enforcement of such rights and liabilities.

Sutherland in his book on Statutory Construction (3rd Edn.) Vol. I by
C Horack stated under common law principles of construction and interpretation
all rights, liabilities, penalties, forfeitures and offences which are of purely
statutory derivation and unknown to the common law are effaced by the
repeal of the statute which granted them, irrespective of their accrual. Likewise,
where a common law principle is abrogated, its effective existence is destroyed
O both as to past actions and to pending proceedings. However, a right of a
common law nature which is further embodied in statutory terms exists as an
enforceable right exclusive of the statute declaratory of it, and· therefore the
right is not expunged by the repeal of the statute.

Since the effect of a repeal is to obliterate the statute and to destroy its
E 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
F 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, the:re is a simultaneous repeal and the reenactment
and the A.P.V.A. Tax Act clearly saves the earlier provisions in toto.
G 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
H to be considered as reaffirmation of the old law and provisions of the repealed
GAMMON INDIA LTD. v. CHIEF SECRETARY [DALVEER BHANDARI, J.] 329
Act which are thus reenacted continue in force uninterruptedly unless, the A
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 B
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.
f
~ -.J
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 C
that the Assistant Commissioner (Commercial Taxes), Warangal Divisipn
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 D
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 E
crores within four weeks pending adjudicatien 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 F
said amount within the stipulated time the tribunal shall hear the appeals and
decide them in accordance with law.

Consequently, these Appeals are being disposed of in terms of the
directions,,given in the preceding paragraph. In the facts and circumstances
of the case, we direct the parties to bear their own costs. G
v.s. Appeal disposed of.

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