S SOUNDARAPANDIAN Vs. COMMR OF COMMERCIAL TAXES

JUDGEMENT

(1.) In this Sales Tax Appeal preferreu against the order made by the Commissioner ci Commercial Taxes under S. 22-A of the Karnataka Sales Tax Act, 1957 (hereinafver referred to as 'the Act), the following question of law arises for consideration: - Whether water colour and poster coluor fall under Entry No. 97 ot the Second Schedule of the Act which Entry reads - 'Paints, Colours, dyes and varnish."? The petitioner is a dealer in stationery articles viz., Thermos-flask, razors, cosmetics, water colour, poster colour oil colour, edible oil etc., For the assessment year 1971-72, the taxable turn over oi the assessee was fixed at Rs. 3,2,9,472-09 P. The dispute was in respect of tax payable on the turn over of the poster colour and water colour amounting to Rs 60,358. The assessing authority, after examining the books of accounts, issued a proposition notice in form No. 31A to the assessee. The relevant portion of the notice reads thus: -

(2.) Against the assessment ordere, the assessee preferred an appeal before the Deputy Commissioner of Commercial Taxes (Appeals) Bangalore The appellate authority accepted the contention, of the assessee that water colour, poster colour etc., dealt with by the assessee would not fall under Entry 97 of the second schedule. On the said view, he set aside the order of the assessing officer.

(3.) Thereafter, the Commissioner having perused the order of the appellate authority, was of the view that the view taken by the appellate authority was erroneous and was prejudicial to the revenue. He therefore issued a notice under S. 22A of the Act to the assessee calling upon him to show cause why the order of the appellate authority should not be revised. The assessee filed his objections to the show cause notice and reiterated his stand which he had taken before the assessing officer and which had been accepted by the appellate authority. The Commissioner however, proceeded to hold that the water colour, oil colour and poster colour dealt with by the assessee fell within Entry 97 of the second Schedule viz., Points, colours, dyes, and varnish'. Aggrieved by the said order, the assessee has presented this appeal