SUPER MARKET Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) IN the present revision petition the only question of law which has fallen for our consideration is as to what was the rate of tax applicable to paper napkins during the period April 1, 1984 to March 31, 1985.

(2.) ACCORDING to the petitioner, the paper napkins sold by it can be subjected to tax at the rate of 8 per cent being covered by Sl. No. 125 of the Second Schedule to the Karnataka Sales Tax Act, 1957 (in short, "the Act") or at the rate of 7 per cent under section 5 (1) of the Act. But the Tribunal by rejecting the said contention had held the paper napkins sold by the petitioner as falling under Sl. No. 125 of the said Schedule being an article of toilet thereby holding that the same is liable for tax at the rate of 12 per cent.

(3.) THE competing claims of the assessee and the revenue are referable to two entries in the Second Schedule to the Act which are at Sl. Nos. 65 and 125 thereof. These entries read as under :