KLIC AND CO Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) This S.T.R.P. is filed under section 23, sub-clause (1) of the Karnataka Sales Tax Act, 1957, against the order dated January 9, 1985, passed in S.T.A. No. 798 of 1980 on the file of the Karnataka Appellate Tribunal at Bangalore, confirming the order dated September 11, 1979, in Appeal No. AP/147/79-80/2480 on the file of the Additional Deputy Commissioner of Commercial Taxes (Appeals), Bangalore City Division, Bangalore, confirming the order dated March 31, 1979, passed by the Commercial Tax Officer, XVII Circle, Bangalore, for the assessment year April 1, 1977 to March 31, 1978.

(2.) The petitioner is a photographic block-maker who supplied such blocks to his clients according to the specifications and designs of the customers. In relation to the period April 1, 1977 to March 31, 1978, the Commercial Tax Officer, XVII Circle, Bangalore, before whom the petitioner is assessed to sales tax, completed the assessment under the provisions of the Karnataka Sales Tax Act, 1958 (hereinafter referred to as "the Act") and levied sales tax on the turnover of sales of blocks. Subsequently, the assessee has filed a revised return of turnover and claimed deductions and exemptions for the sale of metal blocks as the block-making involves technical skill and expertise. Thus it is not a sale attracting the sales tax.

(3.) The assessing authority has rejected this plea and held that the assessee as a registered dealer under the Central Sales Tax Act, 1956, purchases metal blocks, zinc sheets, films, process engraving plates, copper sheets on "C" forms for use in the manufacture of metal blocks for sale, which goods are authorised under the R.O. issued. Similarly, he purchases the same goods in the local market also from the registered dealer paying local tax for use in the manufacture of metal blocks. All the purchases are vouched and accounted duly in the books of accounts. The assessee after manufacturing metal blocks sells in the State and collects Karnataka sales tax at 4 per cent which is in order.