DEEPAM SILK INTERNATIONAL Vs. STATE OF KARNATAKA REP

JUDGEMENT

(1.) PETITIONERS are before me challenging the constitutional validity of levy of tax on silk fabrics under Section 4b of the Karnataka Tax on Luxuries Act ( 'the Act1 for short ). They are also seeking for a declaration to declare that the notification dated 25. 8. 2001 issued by the first respondent under Section 12-A of the Act has the effect of exempting levy of tax on silk fabrics for the entire assessment year commencing from 1. 4. 2001. They are also seeking for various other prayers.

(2.) PETITIONERS state in these petitions that the Act was initially enacted to levy tax on commodities like Cigarettes and the luxuries provided in a hotel. The said Act was amended by Act No. 5 of 2001 and 'silk fabrics' were inserted as item No. 4 in the Schedule to the act w. e. f. 1. 4. 2001. An association representing the petitioners approached the Government with regard to their difficulties in the matter. Government thereafter issued an exemption notification. However, the respondent are demanding tax for the period from 1. 4. 2001 to 24. 8. 2001 in the case on hand. In these circumstances, petitioners are before me.

(3.) IN the body of the petition, petitioners have stated that silk fabric is not a luxurious commodity and it is a necessary commodity in the ordinary course of life of an Indian. According to the petitioners the levy in terms of the amendment act is unconstitutional and arbitrary. Their further contention is that when silk clothing is not a luxury, the commodity used for clothing would not be a luxurious commodity. Therefore silk fabrics not being a luxury, the insertion of the same in to the schedule to the Act suffers from legislative competence of the Government under Entry 62 of List II of the Seventh Schedule to the Constitution of India.