MRF LIMITED Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) THE question involved in the present batch of writ petitions pertains to interpretation of section 6-D of the Karnataka Sales Tax Act, 1957 (in short, "the Act") which was inserted by Karnataka Act 6 of 1995 providing for levy of cess on certain transactions of sale and/or purchase with effect from April 1, 1995.

(2.) SUB -section (1) of section 6-D which is relevant for the present purpose reads as under :

(3.) PURSUANT to the said circular, the assessing authorities under the Act have issued notices to all the dealers like the petitioners herein, demanding cess at the rate of 5 per cent of tax payable by such dealers under sections 5, 5-B, 5-C and 6 of the Act in respect of all their sales or purchases effected by them even at their places of business/branches located outside the Bangalore City Planning Area ("Bangalore are", for short). These actions as emanated from the above referred Commissioner's circular has triggered off the present spate of litigations.