SUMAN ENTERPRISES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE petitions are heard and disposed of together as they are filed on identical grounds and in similar circumstances.

(2.) THE petitioners in W.P. 14231/2008 are dealers registered under the Karnataka Value Added Tax Act, 2003, (hereinafter referred to as the 'Act' for brevity). THEy are engaged in the business of manufacture of iron and steel rolled products which are produced in their steel re-rolling Mills and also produce other construction material and they are also engaged in the sale and purchase of iron and steel rolled products. As manufacturers, the petitioners purchase mild steel ingots and billets from registered dealers under the Act and use the goods as inputs and raw-materials in the manufacture of iron and steel rolled products such as for steel, mild steel rods, angles and so on. As traders, the petitioners purchase iron and steel rolled products from dealers registered under the Act. In both the cases namely, as manufacturers and as traders, the sales effected by the petitioners fetches them a profit margin of Rs.50/- to Rs.100/- on an average sale price of Rs.34,000/- per metric ton of iron and steel construction material.

(3.) IN W.P 15021/2008, the petitioners are registered dealers who purchase iron and steel from manufacturers of the said products and effect the sale to registered dealers under the Act engaged in the activity of works contract of construction. Being aggrieved by the Notification aforesaid, the petitioners are before this Court.