STATE OF KARNATAKA Vs. SUNAGAR BROTHERS

JUDGEMENT

(1.) The ques tion for consideration in this appeal is whether the mandate, under S. 20(3) of the Karnataka Sales Tax Act, 1957 (the Act, to pay the undisputed tax before the appeal is entertained is also ap plicable to the additional tax payable under S. 6B of the Act. In other words whether it is obligatory under the Act to deposit the tax and additional tax before the appeal is entertained.

(2.) The respondent-assessee chal lenged the best judgment assessment made against him for the year 1972-73 before the First Appellate Authority which was dismissed in limine on the ground that the respondent failed to pay the tax "not disputed in appeal". The second appeal filed by the assessee before the Karnataka Appellate Tribu nal was also dismissed. On a revision petition under the Act the Karnataka High Court reversed the findings of the authorities below on the ground that unpaid "not disputed" tax was the additional tax which was different than the tax envisaged under S. 20(3) of the Act. The High Court allowed the revision petition of the assessee and remanded the matter to the appellate authority to dispose of the appeal in accordance with law. This appeal by way of special leave against the judg ment of the High Court is by the State of Karnataka.

(3.) Before the appellate authority it was the admitted case of the parties that no part of the undisputed tax levied under S. 5(1) of the Act had remained unpaid. It was only the undisputed additional levy under S. 6B of the Act which had not been paid.