M S MUDHOL Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These two petitions are disposed by the following common order at the stage of preliminary hearing after notice to Respts and after hearing counsel.

(2.) The petitioners are aggrieved by the notice issued by the respondent Commercial Tax Officer, II Circle. Gadag. The notices dated 9/9/81 are produced at Annexures A and B to the petitions. The respondent Commercial Tax Officer has informed the petitioners that in view of the amendment made to Rule 25A of the Kamataka Sales Tax Rules 1957 (hereinafter referred to as 'the Rules' and as published in the Gazette dated 24/ 1 /81 in Notification No.FD 70 CSL 80 the petitioners are no longer exempted from payment of tax under the Act as they have ceased to be village industries as defined in the new Rule 25A of the Rules.

(3.) Aggrieved by the same the petitioners have approached this Court under Article 226 of the Constitution inter alia contending that having been recognized by the Commissioner of Commercial Taxes in Kamataka as persons carrying on village industries and having regard to the language of S 8 of the Karnataka Sales Tax Act (hereinafter referred to as 'the Act) which has the effect of exempting goods mentioned in the Vth Schedule to the Act, the Commercial Tax Officer had no power to issue the impugned notices (Annexures A and B) and bring to tax the business turn-over of the petitioners from oil seed crushers (petitioners in the writ petitions have not stated; whether the . crushers are operated by power or they use animal or manual power) . Their place of business is situated within the town limits of Gadag-Baiegeri in Dharwar District. They were earlier recognized as carrying on business of cottage industry and the produce came under the classification to be found at Entry No, 28 in .the Vth Schedule.