K M KAMATH Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) The Revision Petition requires us to construe Section 5(2) of the Karnataka Sales Tax Act, 1957 (the Karnataka Act' for short) which reads:

(2.) The petitioner purchased goods in the course of inter-State trade availing of the concessional rate of tax under Section 8(1)(b) of the Central Sales Tax Act, 1956 ('the Central Act' for short). He did so in the course of the assessment year 1980-81, during which period he was registered as a dealer under the Central Act. He sold these goods during the assessment year 1981 - 82, by which time he had his registration as a dealer under the Central Act cancelled. It was his contention before the authorities below that he was not liable to pay tax at the rate specified in the Karnataka Act on the sale of such goods during the assessment year 1981 -82 because i) he was not registered as a dealer under the Central Act during that period, and ii) because his turn-over fell below the minimum specified in the Karnataka Act. His contentions were rejected. The Karnataka Appellate Tribunal took the view that Section 5(2) did not specifically say that the dealer should be a registered dealer under the Central Act during the period of assessment.

(3.) As we read Section 5(2) of the Karnataka Act it requires: a) that the dealer must be registered under the Central Act; b) that he had purchased, in the course of inter-State trade or commerce, goods in respect of which the concessional rate of tax under Section 8(1) (b) of the Central Act had been levied; and c) that he had sold those goods. The sub-section also states that he shall be liable to pay tax as specified in the Karnataka Act upon such goods upon their sale "whatever be the quantum of his total turnover".