BHARAT EARTH MOVERS LTD Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) WRIT petitioners are all persons who come within the definition of 'assessed' as defined under Section 2 ( 1 ) (a) of the karnataka Special Tax on Entry of Certain goods Act, 2004 (Karnataka Act No. 29 of 2004) (for short, the Act), who are complaining of the liability for payment of tax created in terms of the charging Section - Section 3 of the Act, which reads as under :

(2.) THE petitioners have also challenged such a levy on only goods brought from outside the State, as such levy is made payable by an importer who is a person who causes the entry of goods into the local area from any place outside the State for consumption or use therein and the levy being confined to only on persons who are importers, it is also discriminatory. It is the version of the petitioners that such a levy clearly violates the provisions of Article 304 (a) of the Constitution of India. It is also contended that the levy of this nature on goods brought from outside the State and while in transit is a levy which is a clear obstruction for movement of goods and being not a regulatory measure is also in violation of the provisions of Article 304 (b)of the Constitution of India. It is further contended that assuming that the levy is a regulatory levy, without conceding the same, even then the provisions of the Act are unconstitutional for the reason that the requirement of the proviso to Article 304 (b) of the Constitution of India i. e. the requirement of obtaining the previous sanction of the President before the introduction of the Bill leading to the Act having not been complied in the present case.

(3.) IT is on such premise a declaration is sought for declaring the provisions of the Act to be unconstitutional, unenforceable and for quashing the assessment orders, demand notices, show cause notices and all other proceedings initiated under the Act for the purpose of enforcing the liability in terms of Section 3 of the Act. A prayer is also made for refund of tax already paid as a consequence to the granting declaratory relief and quashing the assessment orders etc.