Bharucha, J. - (1.) The appellants are manufacturers of television sets and the like in the State of Karnataka.
(2.) On 23rd June, 1986 a notification was issued by the respondent-State under Section 8-A of the Karnataka Sales Tax Act, 1957. Thereby the tax payable by a dealer under Section 5 of the Act on television sets and components manufactured in Karnataka was reduced to 2%. At that point of time the tax payable by dealers in television sets under the Act was 4%. On 28th March, 1987 the respondent-State issued another notification whereby the reduced tax payable by dealers in television sets and components manufactured in Karnataka was enhanced from 2 to 3%. On the same date the rate of tax payable by dealers in television sets and components was enhanced from 4 to 6%.
(3.) The notifications by which the rate of tax payable by dealers in television sets and components manufactured in Karnataka had been reduced were challenged by Solidaire India Limited, a company manufacturing television sets outside the State of Karnataka. On 8th October, 1990 the writ petition was allowed and these notifications were quashed.;