Dalveer Bhandari, J. - (1.) THESE appeals are directed against the judgments of the Division Bench of the High Court of Karnataka at Bangalore dated 1.9.2005 passed in Writ Appeal No. 1931 of 2005 and dated 24.10.2005 passed in Writ Appeal No.2383 of 2005.
(2.) THE controversy in both these appeals is identical, therefore, both the appeals are disposed of by common order. For the sake of convenience, we are referring to the facts of Civil Appeal No.1120 of 2006. The respondents are registered as dealers under the provisions of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as "the KST Act"). Under Section 6-B of the KST Act, turnover tax is imposed. Section 6-B reads as under:- "Section 6-B. Levy of Turnover Tax - (1) Every registered dealer and every dealer who is liable to get himself registered under sub-sections (1) and (2) of Section 10 whose total turnover in a year is not less than the turnovers specified in the said sub-sections whether or not the whole or any portion of such turnover is liable to tax under any provisions of this Act, shall be liable to pay tax."
(3.) UNDER Section 8-A of the KST Act, the State Government has given exemption of the tax. Section 8-A reads as under:- "Section 8-A. Power of State Government to notify exemptions and reductions of tax - (1) The State Government may, by notification, make an exemption, or reduction in rate, in respect of any tax payable under this Act." In pursuance to Section 8-A, the Government of Karnataka issued notification dated 31.3.2001. The said Notification reads as under:- JUDGEMENT_526_TLPRE0_2006Html1.htm ;