STATE OF PUNJAB & ORS. versus SUKH DEB SARUP GUPTA

Citation: [1971] 1 S.C.R. 442 · Decided: 29-04-1970 · Supreme Court of India · Bench: J.C. SHAH · Disposal: Dismissed
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Judgment (excerpt)

442 
STATE OF PUNJAB & ORS. 
v. 
SUKH DEB SARUI' GUPTA 
April 29, 1970 
[J. C. SHAH, K. S. HEGDE AND A. N. GROVER, JJ.] 
East Punjab General Sales Tax Acr, 1948-Exemption from tax under 
Entry 37, Sch. B for alcoholic preparations on which Excise 
duty was 
leviable under Punjab Excise Act 1914,-State Act of 1914 superseded by 
Central Act-Whed1er exemption still available by virtue of s. 8, Gentral 
Clauses Act 1891. 
· 
The respondent was a manufactur~r of medicinal or toilet preparations 
which fell within the definition of "excisable articles" on which excise 
duty was payable under s. 3(6)(c) of the Punjab 
Bx. cise Act, 
1914. 
Under s. 6 read with Entry 37 in Schedule B of the East Punjab General 
Sales Tax Act, 1948, all goods on which duty was 
leviable under the 
Punjab Excise Act, 1914, were exempt from the levy of sales tax. After 
the commencement of the constitution, alcoholic preparations which, under 
the Government of India Act, 1935, were a provincial subject, fell within 
the Union List and in 1955 the Union Parliament enacted the Medicinal 
and Toilet Preparations (Excise Duties) Act. This Central Act repealed 
any State laws corresponding to the Act and brought about uniformity in 
all States in the imposition of excise duty on alcoholic preparations. 
The respondent was assessed to sales tax on alcoholic preparations for 
the years 1959-60 to 1961-62 as the Sales Tax authorities considered that 
the respondent could no longer claim the benefit of the exemption contain-
ed in Entry 37 of Schedule B of the Act. The respondent challenged the 
levy of sales tax by a writ petition which was allowed by the High Court 
on the view that by virtue of s. 8 of the General Clauses Act, 1897, the 
reference in Entry 37 to the Punjab Excise Act must ·be taken to be a 
r~fcrence tu the relevant provisions of the Central Act. 
On appeal to this Court, 
HELD : Dismissing the appeal, 
A 
B 
c 
D 
E 
F 
Tire High Court was right in saying that there was nothing in s. 8 of 
the General ClallSes Act to indicate that the words "former enactment" in 
that provision me.ant only a Central enactment and not a State enactment. 
According to s. 3(19) "enactment" shal! include any provision contained 
in anv Act. [444 G-HJ 
G 
Furthermore it could never be intended that when an Act passed by 
the Union Parliament repeals a State Act the principle underlying s. 8 
should never become applicable. [445 Al 
CIVIL APPELLATE JUR18DICT!ON : 
Ci~il Appeal No. 528 of 
H 
1967. 
Appeal by speci1I leave from the judment and order dated 
April 6, 1966 of the Punjab High Court in Letters Patent Appeal 
No. 143 of 1965. 
) 
PUNJAB v. SUKH DEB (Grover, J.) 
443 
A 
V. c. Mahajan, R. N. Sachthey a,nd B. D. Sharma, for the 
B 
c 
D 
E 
F 
H 
appellant. 
B. R. L. Iyengar, K. L. Mehta. and S. K. Mehta, for the 
respondent. 
The Judgment of the Court was delivered by 
Grove!, ;J. 
This is an appeal by special leave from a judg- · 
ment of the Punjab High Court .holding that medicinal or toilet 
preparations containing alchohal were exempt from the payment 
of tax under the East Punjab General Sales Tax Act, hereinafter 
called "the Act". 
The respondent is running a factory for manufacturing spiritu-
ous and medicinal preparations containing alchohal at Jind in the 
district of Sangrur. Before the coming into force of the Constitu-
tion of India on January 26, 1950 "meqicinal or toilet prepara-
tions" 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 Hi 1948. Under its 
provisions tax was levied on t)le sale of goods with the exception 
of articles exempted under s. 6' of the Act. 
These articles were 
given in Schedule B wherein F.ntry 37 was in these terms : 
"All goods on which d~ty is or may be levied under 
the Punjab Excise Act, 19\4." 
· 
After the enforcement of the Constitution alcoholic preparations 
which under the Government of India Act 1935 was a provincial 
subject came to be dealt with in the Union List. 
Section 3 ( 6 )( c) 
of the Punjab Excise Act was, therefore, omitted by the Adapta-
tion of Laws Order 1950. However, by virtue of Art. 277 of 
the Constitution the State Government continued ·to levy and 
collect the excise duty on the above articles even after January 
26, 1950. In 1955 the Union Parliament enacted the Medicinal 
and Toilet Preparations (Excise Duties). Act, hereinafter referred 
to as the "Centra
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