SURESH COLOUR LABS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) WRIT petition is by a dealer registered under the provisions of the Karnataka Sales Tax Act, 1957 (for short, "the Act"), involved in the activity of processing and supply of photographs, photo print and photo negatives along with allied activities including sale of films, etc.

(2.) SUBJECT-matter of the writ petition is the tax liability relating to the activity of processing and supply of photographs, photo negatives which activity described as works contract had become taxable under Section 5B of the Act read with entry 25 of the Sixth Schedule to the Act on and after introduction of this entry and the Schedule from the year 1986.

(3.) THE petitioner was quite content in paying tax and kept quiet, but became active, inasmuch as, in the case of other similarly placed persons, the levy was held to be bad in terms of the judgment of this court in the case of Keshoram Surindranath, Photo-Mag (P) Ltd. v. Assistant Commissioner of Commercial Taxes (LR), City Division, Bangalore reported in [2001] 121 STC 175. THE attempt on the part of the State to get over this judgment by seeking special leave before the Supreme Court having failed, the Legislature resorted to the ushering in of the amendment to the provision taking cue from certain observations made by the Supreme Court in the case of Associated Cement Companies Ltd. v. Commissioner of Customs reported in [2001] 124 STC 59. THE State Legislature reintroduced the entry by amending Act No. 3 of 2004.