PRABHU SALES Vs. COMMERCIAL TAX OFFICER

JUDGEMENT

(1.) Petitioner is the re-distributor stockist for M/s Lipton India Ltd., the manufacturer of fruit drinks in Tetra Pack under the brand name 'Tree Top'. Petitioner is registered as a dealer both under Karnataka Sales Tax Act, 1957 (for short 'the State Act') and Central Sales Tax Act, 1956 (for short "the Central Act'). Manufacturer effects sale of 'Tree Top' to the petitioner after charging Sales Tax at 10% on the first sale under Entry F8(1) of the second schedule of Karnataka Sales Tax Act.

(2.) In order to understand the contention of the parties, it is necessary to give briefly the legislative history of this entry in the schedule and to refer to some of its salient points. As indicated by the petitioner, item in question was liable to be taxed under Entry F.8(1) of the schedule to the Act, since it answers the description contained in the said Entry.

(3.) With effect from 1.4.1986 and upto 31.8.1988, this item was described in Entry 98 in the second schedule as follows: Second Schedule Serial No. Description of Goods Rate of Tax 98 Ready to serve foods, processed Eight foods, semicooked or semiproce- perssed food stuffs, fruits, dry cent vegetables (whether cooked or not) 1.4.86 to fruits and vegetable products, 31.3.88 when sold in tins, cans, bottles or in any kind of seated containers. The sale of the above items was subjected to single point tax under Section 5(3)(a) of the Act, This item also found a place under eighth schedule to the Act, when the levy is on last sale point. The controversy involved in these petitions, to exigibility to tax the sale of Tetra Pack fruit drink to the last point tax at 3% under Section 5(3)(c) of the Act in addition to tax already charged and paid by the manufacturer at the rate of 10% on the first sale of goods.