M/S. ASIAN PAINTS (INDIA) LTD. Vs. STATE OF KARNATAKA
SUPREME COURT OF INDIA
M/S. Asian Paints (India) Ltd.
STATE OF KARNATAKA
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(1.) The appellant herein is engaged in the business of manufacture and sale of paints and is registered as a dealer under the provisions of Karnataka Sales Tax Act, 1957 (hereinafter referred to as 'KST Act'). It has been paying entry tax under the provisions of Karnataka Tax on Entry of Goods Act, 1979 (hereinafter referred to as 'KTEG Act') as well. In relation to the sales tax assessment under the provisions of KST Act for the periods 1992-1993 and 1993-1994, the appellant had claimed that entry tax amounts collected separately from the customers in the sale bills and paid to the Government will not form part of turnover so as to be subjected to levy of sales tax under the KST Act.
(2.) This contention of the appellant was not accepted and the entry tax so collected by the appellant from the customers was treated as part of turnover and, on that, sales tax was also levied by the Assessing Officer. This view taken by the Assessing Officer was upheld by the High Court as well in the impugned judgment.
(3.) For proper understanding of the matter, we reproduce the provisions of Section 3A of the KTEG Act which reads as under: "Section 3-A. Collection of tax by registered dealer -
(1) A person who is not a registered dealer shall not collect any amount by way of tax or purporting to be by way of tax under this Act, nor shall a registered dealer collect any amount by way of tax or purporting to be by way of tax at a rate or rates exceeding the rate or rates specified in a notification issued under Section 3.
(2) No dealer shall collect any amount by way of tax or purporting to be by way of tax in respect of the entry of any goods on which no tax is payable by him under the provisions of this Act." ;
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