SHRISHAILAPPA Vs. COMMERCIAL TAX OFFICER JAMKHANDI

JUDGEMENT

(1.) The petitioner is a dealer in dyes. Under the provisions of the Karnataka Sales Tax Act as it stood immediately prior to 10-9-1970, the petitioner was liable to pay sales tax on the turnover relating to dyes at 6 per cent of the turnover, vide Entry 97 of Sch.II of the Act as in force then. By virtue of a notification issued under S.8A d/.10-9-1970 by the State Govt, the sales tax payable on the turnover relating to dyes was reduced to 4 per cent.

(2.) The petitioner was paying sales tax accordingly till 1-4-1974. The sales tax payable in respect of dyes was enhanced to 8 per cent by the Karnataka Sales Tax (Amendment) Act (Act 14 of 1974) by the State Legislature with effect from 1-4-1974. Again by another notification issued by the State Govt on 7-6-1974, the sales tax payable on dyes was reduced to 4 per cent with effect from 1-7-1974. In this writ petition, the petitioner has prayed for a declaration that he is liable to pay sales tax in respect of his turnover relating to dyes at 4 per cent only and not at the rate of 8 per cent during the period between 1-4-1974 and 1-7-1974. The contention of the petitioner is that notwithstanding the amendment of the Sales Tax Act by the Kar. Sales Tax (Amendment) Act 1974, the liability of the petitioner to pay sales tax was governed by the notification d/.10-9-1970 which had been issued by the State Govt prior to the amendment which came into force on 1-4-1974. In support of the above submission, the petitioner has relied upon the provisions of S.24 of the Karnataka General Clauses Act. It is argued that since the notification issued on 10-9-1970 had remained unrescinded till 1-7-1974, the petitioner was entitled to claim the benefit of the reduced rate of tax fixed by the notification. It is not possible to agree with the submission made on behalf of the petitioner. It is no doubt true that the State Govt in exercise of its power under 3.8A of the Act had reduced the liability of a dealer to 4 per cent of his turnover in respect of dyes bv by the notification d/.10-9-1970. That notification could be in operation till 1-4-1974 on which date the Amendment Act 14 of 1974 came into force.

(3.) The Legislature which is the highest legislative body in the State declared, on and after 1-4-1974 the turnover relating to dyes should be subject to tax at the rate of 8 per cent of the turnover. The notification issued earlier by the State Govt. which was inconsistent with the Legislative declaration cannot be held to prevail over the amending Act. S.24 of the General Clauses Act would be of no avail to the petitioner because the said section can be pressed into service only when there is no inconsistency between the notification issued earlier and the subsequent legislative declaration. The petitioner, is, therefore, liable to pay sales tax at the rate of 8 per cent in respect of his turnover relating to dyes in accordance with the amending Act until the State Govt again by notification reduced the rate of sales tax to 4 per cent with effect from 1-7-1974. Hence, there is no substance in this petition and it is dismissed. No costs.