KIRLOSKAR ELECTRIC COMPANY LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE first petitioner is a manufacturer of electrical motors and other electrical goods. In the original writ petition, petitioners sought the quashing of the proposition notice (annexure Q dated March 1, 1988), whereby the second respondent had proposed to levy entry tax for the year 1982-83 (April 1, 1982 to March 31, 1983) under the provisions of the Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or Sale Therein Act, 1979 (for short "the Act") in respect of a few goods brought by the first petitioner-company for being used as inputs in the manufacture of electrical goods by the first petitioner-company. Those goods used as inputs were mainly aluminium ingots, industrial gases, iron and steel, petroleum products, coal and coke, etc. These are purchased for use either directly or incidentally in the course of the manufacturing activity of the first petitioner-company. The other relief sought by the petitioners was for declaring that entry tax is not leviable in the case of the petitioner, -

(2.) THERE is no dispute that the articles/goods bought by the first petitioner are found in the Schedule with effect from April 1, 1982. But according to the petitioners, the first petitioner is not a "dealer" in those goods and those goods were used as inputs, etc. , in the manufacture of electrical goods and the first petitioner's business is confined to the manufacture of the electrical goods and sale of those manufactured goods. Mr. Naganand, the learned counsel for the petitioners, contended that the situation, probably, was different after April 1, 1983, because, from then onwards, item 16b was introduced in the Schedule, which reads :

(3.) THE question, therefore, is whether, the first petitioner was a "dealer" in the goods referred to in the impugned show cause notice, even though they are "scheduled goods" under the Act.