S. C. Agrawal, J. - (1.) Special leave granted in both the special leave petitions.
(2.) Both these appeals are directed against the judgment of the Karnataka High Court dated December 7,1990 in Writ Petitions (Writ Petitions Nos. 20736 and 21195 of 1986)filed by the appellants wherein they had assailed the constitutional validity of Section 5(3-D) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the Act). By the impugned orders the said Writ Petition of the appellant have been dismissed by the High Court on the ground that the question raised is covered by the decision in Ranganatha Associates v. State of Karnataka, ILR (1990)Kant 82.
(3.) The appellant are manufacturers of cement the price of which is controlled by the Cement Control Order, 1967 issued by the Central Government in exercise of the powers conferred by section 18-G and Section 25 of the Industries (Development and Regulation)Act, 1951. The appellant supply the cement packed either in gunny bags or in plastic bags. They also sell the same loose to bulk consumers. Till April 1,1986 the appellant were enjoying deduction in respect of packing charges from the taxable turn-over. After the introduction of sub-section (3-D)in Section 5 of the Act the packing material was brought within the purview of the Act and made exigible to tax. Section 5(3-D)of the Act provides as under: "Section 5, Levy of Tax on Sale or Purchase of Goods. (3-D). Notwithstanding anything contained in the Act where goods sold or purchased are contained in containers or are packed in any packing materials liable to tax under this Act, the rate of tax and the point of levy applicable to turn-over or such containers or packing materials, as the case may be, shall whether the containers or the packing materials have already been subjected to tax under this Act or not or whether the price of the containers or of the packing materials is charged separately or not be the same as those applicable to goods contained or packed: Provided that no tax under this sub-section shall be leviable if the sales or purchase of goods contained in such containers or packed in such packing materials is exempt from tax under Act." ;