SHANTILAL Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Each of these petitions under Art. 226 of the Constitution raises the same question regarding the Constitutional validity of S. 6B (1) of the Karnataka Sales Tax Act, 1957 ("Act" for short) as amended by Karnataka Act No. 13 of 1982, which provides for the levy of one-half per cent of 'turnover tax' on every dealer whose total turnover in a year exceeds rupees one lakh.

(2.) In order to appreciate the contentions urged in regard to the said question, it will be necessary to have regard- to some of the relevant provisions of the Act. 3.2 (u-1) defines taxable turnover' to mean "the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed, but shall not include the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India." Section 2 (u-2) defines 'total turnover' as follows: The aggregate turnover in all goods of a dealer at all places of business in the State whether or not the whole or any portion of such trurnover is liable to tax, including the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India." Section 2 (v) defines 'turnover' in the following terms.

(3.) We may now trace the some what vacillating steps by which Section 6B reached its present form. Section 6B as it originally stood provided for the levy of an additional tax of 10 paise in the rupee on the sales tax or purchase tax or both payable by every dealer liable to pay tax under Sections 5 and 6 of the Act subject to certain restrictions contained in the proviso thereunder. Sub-section (2) of Section 6B provided that the provisions of the Act and the Rules made thereunder including those relating to refund of exemption from tax shall, in so far as may be, apply in relation to the levy, assessment 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 Section 3 of the Karnataka Sales Tax (Amendment) Act, 1981 Karnataka Act No. 7 of 1981).