R.V.Raveendran, J. - (1.) Sri S. Subbanna, learned H.C.G.P., is directed to take notice on behalf of the respondent.
(2.) The petitioner is a registered dealer under the Karnataka Sales Tax Act, 1957 ("the Act", for short) dealing in optical frames, spectables, etc. In regard to the period April 1, 1992 to March 31, 1993, petitioner claimed exemption from payment of all taxes, relying on Notification No. FD 72 CSL 92(XXII) dated March 30, 1992, issued by the State Government which reads as follows : "In exercise of the powers conferred by section 8A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby exempts with effect from the first day of April, 1992, the tax payable under section 5 of the said Act by a dealer on the sale of spectables, sun-glasses, goggles, lenses and frames (other than those imported from outside the country)." The assessing authority (respondent) passed an order of assessment dated May 27, 1995 (annexure B) holding that the entire turnover was exempted from payment of sales tax payable under section 5 of the Act. But he held that the petitioner's turnover is subject to turnover tax at 1.25 per cent under section 6B of the Act.
(3.) According to the petitioner, its turnover cannot be subjected to turnover tax as the notification dated March 30, 1992, exempts not only the sales tax payable under section 5 payable under the Act by a dealer on the sale of spectacles, sun-glasses, goggles, lenses and frames, but all taxes payable under the Act including turnover tax. Hence the petitioner has filed this petition for quashing the assessment order and consequential demand notice dated May 27, 1995 (annexure B and C and) seeking a direction restraining the respondent from levying turnover tax under section 6B.;