BHANDARI METALS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THESE two appeals arc filed under Section 16 (1) of the Karnataka Entry Tax Act, 1979 ('act' for short) against the order dated 31-01-2001 passed by the Additional Commissioner of commercial Taxes, Zone II, Bangalore in SMR/kteg/2o-BD/2000-01/1420-2000-2001 passed in exercise of suo moto revision power under Section 15 (2) of the Act, in regard to 1995-96 and 1996-97.

(2.) THE Appellant is a manufacturer of non-ferrous metal (copper/ brass) Rods and wires. The appellant purchases non-ferrous metal scrap from outside the State and causes their entry into local area for being used in the manufacture of rods and wires. For the assessment year 1995-96, the appellant filed a return disclosing the entry of non-ferrous metal scrap of the value of Rs. 1,73,93,625/- and paid entry tax at the rate of 1% under the Act in regard to the said value. In regard to assessment year 1996-97, the appellant filed a return disclosing the entry of non-ferrous metal scrap of the value of Rs. 1,86,78,549/-and paid entry tax at the rate of 1% under the Act on the said Act. The Assessing Authority accepting the returns and passed two orders of assessment dated 28-3-2000 in regard to the years 1995-96 and 1996-97.

(3.) SECTION 3 (1) of the Act, which is the charging Section provides that there shall be levied and collected a tax on entry of any goods specified in the First schedule to the Act, into a local area for consumption, use or sale therein, at such rates not exceeding the specified percentage of the value of the goods, from such date as may be specified by the State Government by Notification. Sub-section (6) of Section 3 provides that, no tax shall be levied under the Act on any goods specified in the Second Schedule on its entry into a local area for consumption, use or sale therein. Between 1-5-1992 to 31-3-1994, the I schedule to the Act contained following Entry at sl. No. 60: