K JANARDHANA ACHARYA Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These two sales-tax revision petitions are presented under S. 23 (1) of the Karnataka Sales Tax Act, 1957 (hereinafter referred to as the 'Act') by a registered dealer against the orders of the Karnataka Appellate Tribunal confirming the orders of the Appellate and Assessing authorities. The only question of law that arises for consideration in these two revision petitions is as follows: -

(2.) The petitioner is engaged in purchasing old gold and silver articles and manufacturing gold and silver jewellery out of it and selling them, For the assessment years 1973-74 and 1974-75 the petitioner furnished his returns. During the relevant years he had purchased old gold and silver articles from individuals who were not liable to pay sales Tax under the, Act. Thereafter the assessee prepared gold and silver jewellery out of the gold articles so purchased and had sold the said jewels. According to the assessee he was exempt from payment of sales tax under S. 6 of the Act by virtue of a notification issued under S. 8A of the Act. The Commercial Tax Officer assessed the assessee both under Section 5 (1.) and 6 of the Act at 31/2% which was the rate prevailing during the relevant period. Aggrieved by the said orders the assessee preferred appeals to the Assistant Commissioner of Commercial Tax (Appeals) Mangalore. His appeals were dismissed. Aggrieved by the said order the assessee preferred second appeals before the Karnataka Appellate Tribunal. By common order dated 7-8-78 the "Tribunal confirmed the assessment made by the assessing authority both under Sec. 5(1) and 6 of the Act. However, the Tribunal reduced the purchase tax from 31/2% to 1% on the ground that the old gold and silver articles purchased by the assessee constituted bullion.

(3.) Sri K. Srinivasan, learned Counsel for the assessee contended that in view of the notification issued by the State Government under Sec. 8A of the Act on 10-9-70 the assessee was not liable to pay tax under Sec. 6 of the Act on the purchase turnover of articles of gold and silver. The said notification reads: