VIJAYA TRADING CO Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioner-firm carries on business in old and second hand empty glass bottles and tins at Bangalore. It is a registered dealer under the provisions of Karnataka Sales Tax, 1957 (in short 'the Act').

(2.) This Writ Petition has been filed by the petitioner to quash the notice of demand date 16.1.1990 demanding payment of Rs.48,908/- for the year ending 31.3.1989 under Annexure-B and notice of demand date 16.1.1990 demanding payment of Rs.4,373/ - from July 1989 to November 1989, under Annexure-C and to quash the endorsement date 2.3.1990 on the ground that no tax could have been levied or demanded in respect of second hand empty bottles, keeping in view the Judgment of this Court in the case of G. SUBRAMANYA REDDY & CO. v. KARNATAKA APPELLATE TRIBUNAL and Ors., STRP 125/1991 disposed on 11.1.1985, wherein it was held that since the bottles were subjected to single point tax, the sale of second hand bottles cannot be subjected to tax over again for the second time.

(3.) The Judgment referred to by the petitioner pertains to the year 1977-78. During that period admittedly the glass bottles were taxable at 8% at first point under Entry 118 of Schedule II to the Act. The said position continued till upto 31.3.1987. With the introduction of Karnataka Amendment Act 14 of 1987, sale of glass bottles became taxable at 7% on multipoint under the provisions of Section 5(1) of the Act. It was so because the words "Glass Bottle Jars and Carboys" were substituted by the words "Glass Jars and Carboys" with effect from 1.4.1987. The said being the legal position, irrespective of the fact whether glass bottles were new or second hand, since the liability to tax under the Act was multipoint on sale of glass bottles, the petitioners have been rightly made liable to tax for sale of even second hand glass bottles.