M.U.S. Marketing Pvt. Ltd. vs State Of Punjab And Anr. on 10 December, 2007
5. Principally, the case advanced by the respondent, who has raised this
preliminary objection as to non-maintainability of these appeals, is that by
virtue of sub section (2) to Section 106 of the Delhi VAT Act, the repeal of the
Delhi Sales Tax Act will not affect the previous operation of the said Act or any
right, title, entitlement, obligation or liability already acquired, accrued or
incurred thereunder. The contention is that the right of reference under the
provisions of Section 45(1) and 45(2) of the Delhi Sales Tax Act is a vested
right by virtue of Section 106(2) of the Delhi VAT Act and consequently, it is
contended that such vested rights have been saved by the said sub-section (2) of
Section 106. It is contended that since the proceedings with respect to which
S.T. Appeals No.2-3-4 and 5/ 2009. Page 4
the present appeals are filed, originated with respect to assessment years 1994-
95 and 1995-96 and were initiated under the Delhi Sales Tax Act,
consequently, the repeal of the Delhi Sales Tax Act would not affect the vested
rights under sub section (1) and (2) of Section 45 of the Delhi Sales Tax Act.
The appellant on the other hand has relied upon the sub-section (3) of Section
106 of the Delhi Vat Act which specifies that for the purposes of sub-section (2)
anything done or any action taken including any appointment, notification,
notice, order, rule in the exercise of any powers conferred by or under the Delhi
Sales Tax Act shall be deemed to have been done or taken in exercise of the
powers conferred by or under Delhi VAT Act as if this Act were in force on the
date on which such thing was done or action was taken. The appellant has
relied upon the decision of the M.U.S. Marketing's case (supra) wherein the
Punjab and Haryana High Court with respect to similar provisions appearing in
the Punjab VAT Act, 2005 held as under: