UNITED BREWERIES LIMITED Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) WRIT petition by a dealer registered under the provisions of the Karnataka Tax on Entry of Goods Act, 1979 (for short, "the Act"), questioning the legality of the Government Notification bearing No. FD 23 CET 2001, dated March 31, 2001 See [2001] 122 STC (St.) 67. (copy at annexure B) and for quashing of the same and also for issue of consequential mandamus to the respondent-State and its officers not to take any action as against the petitioner under the impugned notification.

(2.) THE writ petition also prays for a declaration to the effect that entry 103 in the First Schedule to the Act is a provision which can be worked upon only by the State Legislature and not by the executive of the State Government in the exercise of its delegated powers under the provisions of Section 30 of the Act. THE petition prays for several other prayers and a residuary prayer.

(3.) THE entire challenge occurs in the context of the attempt on the part of the State to levy entry tax on items or goods known as "corks" which figure at S1. No. 4 of the impugned notification and which attracts tax at the rate of two per cent of the value of such cork when brought into a local area as contemplated under the Act. THE entire exercise in this writ petition is for avoiding this levy. THE petitioner, a registered dealer under this Act, as per the petition averments, is a manufacturer of beer, an alcoholic drink, at any rate, the drink which is brewed and which is marketed by the petitioner in bottles, which bottle is sealed by the cork made use of in the lid to the bottle. THE writ petition is on the premise that the charging section, i.e., Section 3 read with the First Schedule to the Act does not create a liability for the levy of entry tax on such cork when brought into local area by the petitioner and therefore a Notification No. FD 23 CET 2001, dated March 31, 2001 (copy at annexure B) issued under Section 3 of the Act should be held as unauthorised, illegal and to be struck down, etc.