Page 204 - GSTL_2nd April 2020_Vol 35_Part 1

106 GST LAW TIMES [ Vol. 35
point where they are consumed, and not at the point of origin. Under GST law,
the place of supply of goods and services assumes significance. There are several
noticeable differences between the GST regime and the previous one pertaining
to levies, taxes, exemptions etc. Once such area is the “exemptions”. The Legisla-
ture has sought to prune the exemptions that were provided by the Government
in the previous regime. The GST predicates on the fact that there would be min-
imum exemptions. This was necessary in order to ensure that cascading of taxes
is minimized and there is seamless transfer of the Input Tax Credit, which is one
of the main cornerstones of the GST law. In this changed scenario, the Parliament
being conscious of the exemptions that were granted as incentives against in-
vestments through a notification, while repealing the earlier legislations, specifi-
cally provided that such incentives shall not continue as privileges, if the notifi-
cations are rescinded on or after the appointed date provided under the Act. This
objective has been embedded in Section 174(2)(c) of the CGCT Act, which reads
as under :
“174. Repeal and saving. - (1) Save as otherwise provided in this Act, on
and from the date of commencement of this Act, the Central Excise Act, 1944
(1 of 1944) (except as respects goods included in entry 84 of the Union List
of the Seventh Schedule to the Constitution), the Medicinal and Toilet
Preparations (Excise Duties) Act, 1955 (16 of 1955), the Additional Duties of
Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Additional
Duties of Excise (Textiles and Textile Articles) Act, 1978 (40 of 1978), and
the Central Excise Tariff Act, 1985 (5 of 1986) (hereafter referred to as the
repealed Acts) are hereby repealed.
(2) The repeal of the said Acts and the amendment of the Finance Act,
1994 (32 of 1994) (hereafter referred to as “such amendment” or “amended
Act”, as the case may be) to the extent mentioned in the sub-section (1) or
Section 173 shall not -
(a) revive anything not in force or existing at the time of such
amendment or repeal; or
(b) affect the previous operation of the amended Act or repealed
Acts and orders or anything duly done or suffered thereunder;
or
(c) affect any right, privilege, obligation, or liability acquired, ac-
crued or incurred under the amended Act or repealed Acts or
orders under such repealed or amended Acts :
Provided that any tax exemption granted as an incentive against investment
through a notification shall not continue as privilege if the said notification is re-
scinded on or after the appointed day; or...“
(emphasis supplied)
19. Consistent with the objective envisioned at the time of bringing in
the new law, the Respondents vide Notification No. 21/2017-C.E., dated 18-7-
2017 rescinded various area-based exemption notifications including the Notifi-
cation No. 50/2003-C.E. which forms the foundation of the Petitioner’s claim in
the present petition. As a result, vide Notification dated 18-7-2017 read with Sec-
tion 174(2)(c) of the CGST Act, the Petitioner lost all the privileges which it had in
the erstwhile regime.
20. However, the stakeholders viz. Central and State Governments
were conscious of the fact that in the previous regime, they had announced in-
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