M/S.COROMANDEL SUGARS LTD. Vs. THE STATE OF KARNATAKA &

JUDGEMENT

(1.) Whether Cess is a tax? Cess means a tax. The word 'cess' is generally used when the levy is allocated for a particular purpose as the name of the cess indicates; For eg. health cess, education cess, road cess etc.

(2.) In this writ petition, the petitioner is challenging the order dated 05.08.2014 passed under Section 12-A of the Karnataka Sales Tax Act, 1957 ('the Act') levying road cess u/s 25-B(2), interest u/s 12B and penalty u/s 12A(1-A) of the Act.

(3.) I have heard the Counsel for the parties and perused the impugned order. The sole contention urged by the petitioner's counsel is that the impugned order is contrary to the exemption notification dated 20.03.2008 issued u/s 8A of the Act, wherein the Government of Karnataka has exempted the tax payable by a dealer u/s 25-B of the Act for the period from 01.04.2008 to 31.07.2008. He submitted that cess leviable u/s 25-B(2) of the Act is also a tax and hence is not excluded under the exemption notification. Therefore, the impugned levy of cess is liable to be set aside.