KUSHAL INDUSTRIES ASSOCIATION MANGALORE Vs. DEPUTY COMMISSIONER OF COMMERCIAL TAXES ASSTS IV MANGALORE

JUDGEMENT

(1.) THIS writ petition is by a partnership firm which was a registered dealer under the provisions of the Karnataka Sales Tax Act, 1957 [for short "the Act"] and who has questioned the revenue recovery proceedings resorted to by the revenue officials at the instance of the officials of the commercial taxes department for realizing the sales tax dues payable by the petitioner which was to the tune of Rs. 8,05,284/- which is the amount as confirmed in the appellate order passed by the joint Commissioner of Commercial Taxes [Appeals] dated 15.12.2004 [copy at Annexure-A].

(2.) THE Challenge in this writ petition is not only to the legality of the tax liability on the premise that the petitioner is a dealer who had enjoyed the benefit of exemption from levy of tax in respect of its turnover in terms of a Government exemption Notification issued under section 8-A of the Karnataka Sales Tax Act, 1957 [for short "KST" Act"] dated 21.6.1991 and being covered by Entry at Sl. No. 11 which reads as under: NOTIFICATION No. FD 239 CSL 90(I), Bangalore, dated 19th June, 1991 SO 1371, Karnataka Gazette, dated 21st June, 1991 In exercise of the powers conferred by sub-section (1) of Section 8-A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby exempts with immediate effect the tax payable under the said Act, in respect of goods manufactured and sold by new industrial units mentioned in Column (2) of the table below located in the zones specified in Column (3) to the extent indicated in Column (4) and during the period mentioned in Column (5) thereof, namely- TABLE and because of this position, and also being aggrieved by a subsequent notification dated 28.8.1993 published in gazette dated 23.9.1993 which is again issued under section 8-A of the KST Act which reads as under: NOTIFICATION No. FD 171 CSL 93(VI), Bangalore, dated 28th August, 1993, Karnataka Gazette, dated 23rd September, 1993 SO 1184. " In exercise of the powers conferred by sub-section (3) of Section 8-A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka herby varies with immediate effect the Notification-I, No. FD 239 CSL 90, dated 19th June, 1991, as follows namely:-

(3.) NOTICE had been issued to the respondent " State and the officers of the commercial taxes department. The respondents have entered appearance through counsel Smt. Niloufer Akbar, learned Additional Government Advocate and have filed statement of objections defending the impugned actions.