STATE OF KARNATAKA Vs. B V ASWATHANARAYANA SETTY

JUDGEMENT

(1.) In these eleven revision petitions presented by the State under section 23(1) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as "the Act"), against the order of the Karnataka Appellate Tribunal, Bangalore, the following question of law arises for consideration :

(2.) The respondent, who is common in all these cases (hereinafter referred to as the assessee) is a dealer in waste silk and pierced cocoons. During the relevant years, the assessee had sold pierced cocoons. The assessing officer was of the opinion that the pierced cocoons fell within the expression of "raw silk" included under entry 38-A of the Fifth Schedule to the Act and therefore the turnover pertaining to pierced cocoons was exempt from payment of tax under the Act. The Deputy Commissioner of Commercial Taxes having entertained the view that the order of the assessing authority was erroneous and prejudicial to the revenue, revised the orders in exercise of his suo motu revisional powers under section 21 of the Act. Aggrieved by the orders of the Deputy Commissioner, the assessee preferred appeals before the Karnataka Appellate Tribunal. The Tribunal by a common judgment accepted the contention of the assessee and revised the order of the Deputy Commissioner and restored the order of the assessing authority. Aggrieved by the orders of the Tribunal, the State has preferred these revision petitions.

(3.) Before considering the question arising for consideration, it is necessary to refer to the relevant provisions of the Act. According to Section 5(1) of the Act, every dealer has to pay tax on his taxable turnover at the rate prescribed in the said sub-section, except in cases where different rates are specified in the different schedules to the Act. The Fifth Schedule contains description of goods which are exempted from tax under the Act. The relevant entries are entries 16 and 38-A, which read :