KAYPEE INDUSTRIES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) ALL these writ petitions can be dealt with under a common judgment.

(2.) THE facts in W. P. No. 8533 of 1984 briefly stated are as follows : The petitioners, a registered partnership firm is carrying on the business of manufacture and sale of confectionery, sugar-candy and sugar syrup. They have been assessed to sales tax under the Karnataka Sales Tax, Act, 1957, concerning the sale of sugar-candy and sugar syrup. Originally it was thought by the assessing authority that the petitioners would be entitled to the exemption under entry No. 31b of the Fifth Schedule to the Karnataka Sales Tax Act, 1957. Accordingly, assessments were passed on 27th July, 1978, granting the benefit of exemption for the assessment year commencing 1st July, 1976 and ending by 30th of June, 1977. However, on 4th August, 1982, finding that it was no longer entitled to exemption, the Deputy Commissioner of Commercial Taxes (1st respondent) issued show cause notice proposing to review the order of the assessing authority on the ground that entry 31b under the Fifth Schedule, cannot be applied to the sale of sugar syrup, and therefore he proposed to tax at 4 per cent multi-point under section 5 (1) of the Karnataka Sales Tax Act, 1957.

(3.) THE learned counsel for the assessee-firm has relied on the judgment in the case of Krishna Products in S. T. R. P. Nos. 46 and 47 of 1978 which was pending before the honourable High Court of Karnataka, Bangalore, and not filed any other objections for the proposed levy of taxes.