VISHAL ENTERPRISES Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THE short question which falls for determination in this appeal is, whether the appellant's purchase of certain steel shutter lathes (claimed by the learned counsel for the appellant as the common parlance usage of certain components used in the manufacture of rolling shutters and the like) fall specifically under entry 2 (a) (v) of the Fourth Schedule to the Karnataka Sales Tax Act, 1957, and as such are liable to tax at the point of the first sale or, whether such steel shutter lathes fall outside entry 2 (a) and, therefore, are liable to tax under section 5 (1) of the Act on its purchase or sale and brought to tax on the turnover.

(2.) FOR the assessment year 1977-78 (Deepavali year), the assessing authority refused to accept the contention of the assessee that he was entitled to exemption as the items purchased by him, namely, steel shutter lathes, fell within the ambit of entry 2 (a) (v) and was liable to tax at the first sale point in the State and he being a second purchaser, his sale was not liable for tax. Therefore, he brought to tax the turnover relating to such purchases. Aggrieved by the same, the assessee filed an appeal to the Deputy Commissioner of Commercial Taxes (Appeals), Bangalore City Division, Bangalore, in A. P. No. 126/80-81. The appellant succeeded before the appellate authority and got exemption in respect of the sales as they were considered to be second sales of commodities falling under entry 2 (a) (v ). However, the Commissioner of Commercial Taxes in Karnataka, Bangalore, respondent herein, in exercise of his suo motu revisional jurisdiction under section 22-A of the Act, after notice to the appellant, found fault with the appellate order granting exemption, set aside the same and restored the original assessment order of the assessing authority. Aggrieved by the same, the present appeal is preferred.

(3.) ANY tax paid pursuant to the order of the Commissioner of Commercial Taxes, which is now set aside, shall be refunded to the appellant. If the appellant makes an application for refund, the same shall be disposed of and refund shall be made within one month from the date of receipt of such an application. Order accordingly. Petition allowed. .