B P AUTOMOBILES Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) These writ petitions are amongst the batch of writ petitions challenging the levy of an additional tax on turnover under S. 6-B of the Karnataka Sales- Tax Act, 1957 (as substituted by S.3 of the Karnataka Sales-Tax (Amendment) Act, 1981 Karnataka Act 7 of 1981) . As the contentions urged are common, all the writ-petitions were heard together so that all the learned counsel appearing in the cases are afforded an opportunity of being heard. The writ-petitions now disposed of by this order are, so far as the contentions raised and urged are concerned, representative of the batch. The other petitions in the batch will be disposed of in convenient batches following this pronouncement.

(2.) Petitioners are 'dealers' registered under the Karnataka Sales-Tax Act, 1957 (hereinafter referred to as the 'Act'). S. 6-B of the 'Act', as it presently obtains, was substitute 1 in place of the old) section 6-B, by S. 3 of the Karnataka Act 7 of 1981. 6-B of the 'Act' as it earlier stood envisaged and provided for an additional tax: levied on and collected from every dealer liable to pay tax under S. 5 or Under S.6 at the rate of 10 paise in the rupee on the sales-tax or purchase tax or both payable, as the case may be, by such dealer. Sub-sec. (2) of S. 6B provided that the provisions of the Art and the Rules made thereunder including those relating to refund or exemption from tax shall, in so far as may be apply in relation to the levy, assess ment and collection of such additional tax as they apply in relation to the levy, assessment and collection of sales tax or purchase tax under the 'Act'. This provision was substituted by S.3 of Karnataka Act 7 of 1981. There is material difference between the provisions of the earlier sub-section (1) and the substituted sub-section. While the earlier provisions envisaged an additional levy on a dealer calculated at 10 paise in the rupee on the amount of sales-tax or purchase-tax or both payable by him, the present sub-sec. (1) envisages a levy at /2 per cent on the total turnover of a dealer whose 'total turn-over" in a year exceeds rupees one lakh. S. 6B as it now stands reads :

(3.) The amending Act received the assent of the Governor on 4.4.1981. However, by virtue of the requisite legislative declaration contained in the Bill the provisions of the 'Act' became enforceable from the date of the introduction of the, Bill as provided by the, Provisional Collection of Taxes Act, 1974. We may now set-out the facts of some of the cases, which are typical and illustrative of the position of the petitioners in this batch of writ petitions, to show how the provisions of the substituted S. 6B are construed by the authorities to affect the dealers.