PRATHIBA DISTRIBUTORS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner is a manufacturer and dealer in Non-pressure Kerosene Wick Stoves. It is registered under the provisions of the Karnataka Sales Tax Act, 1957. He has come up before this Court for quashing of the notice dated 29.9.95 issued under Section 12A of the Act proposing to reassess the petitioner's turnover tax liability for the year 1992-93. The original assessment for this period was concluded on 25.3.1994. The only reason for initiating the reassessment proceedings is that, according to the respondent-Assistant Commissioner of Commercial Taxes, keeping in view the notification No. FD.107/CSL 89 XI] dated 31.3.89 (Annexure 'B') the petitioner was not entitled to exemption from turnover tax as contemplated under Section 6B of the Act and exemption in the regular assessment was wrongly granted by relying upon the earlier notification No. FD.107 CSL.89(XII), Karnataka Gazette dated 31.3.89(Annexure-C).

(2.) Both the aforesaid notifications had been issued under Section 8A of the Act. The notification dated 31st of July 1985(Annexure-C) reads as under:" In exercise of the powers conferred by Section 8A of the Karnataka Sales Tax Act, 1957, (Karnataka Act No. 25 of 1957), the Government of Karnataka, hereby exempts with effect from the first day of August, 1985, the tax payable by a dealer under the said Act on 'Glass Chimneys, hurricane lanterns, oil lamp wares and non-pressure kerosene wick stoves and their parts." Whereas the subsequent notification dated 31.3.1989 (Annexure-B) reads as under:

(3.) The Learned Counsel for the petitioner submits that since in the first notification, the non-pressure kerosene wick stoves and their parts had been completely exempted from the tax payable under the Act and that having not been specifically cancelled by a subsequent notification as required under Sub-section (3) of Section 8A read with Sub-section (6) thereof the petitioner was entitled to exemption from turnover tax as well.