DESHPANDE SHOLAPURKAR AND CO Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) This Revision petition is directed against the order dated July 5, 1978 of the Karnataka Appellate Tribunal, Bangalore, dismissing the appeal of the petitioner in STA.No 659 of 1977.

(2.) The petitioner firm is carrying on the business as jewellers at Bi japur. For the assessment year 1974-75, the petitioner declared his taxable sales and purchases turnovers. The assessing authority accepting this de clared turnovers levied the tax at percent on Rs. 11,404-75. He also levied surcharge of Rs. 910-97 under S. 6B (as it then stood) of the K.S.T. Act 1957.

(3.) The petitioner, being aggrieved by the levy of surcharge, preferred an appeal to the Deputy Commissioner of Commercial Taxes (Appeals), Belgaum, under S. 20 of the K.S.T. Act. The Deputy Commissioner, while considering the appeal, found that the levy of tax at 1 per cent on purchase of gold and silver articles was not in order. He issued a notice to the petitioner proposing to enhance the rate of tax at 3 per cent from 1 per cent under S. 5(1) of the Act. After hearing the petitioner, he affirmed the rate of tax proposed and consequently cancelled the levy of additional tax imposed under S. 6B of the Act. Being aggrieved by the order of the Deputy Commissioner, the petitioner took up the matter in appeal before the appellate Tribunal. The main contention urged in the appeal related to the lack of jurisdiction for the Deputy Commissioner to enhance the assessment by adopting the high-rate of tax while disposing of the appeal against the levy under S. 6B. The Tribunal did not accept the contention and dismiss the appeal. Hence, this revision petition.