ANANDA SOAP FACTORY Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) Because a common question of law arises for consideration in these two cases, they are disposed of by this common judgment.

(2.) The petitioners in these two cases were manufacturers of handmade washing soaps, using the edible oils during the period between 1st July, 1971, and 31st December, 1971, which formed part of the assessment year 1971-72. Under the Karnataka Sales Tax Act, 1957 (hereinafter referred to as "the Act"), the petitioners were liable to pay sales tax at six per cent on their sales turnover of washing soap (vide S1. No. 94 of the Second Schedule of the Act). But by notification dated 31st May, 1971, issued by the State Government under section 8-A of the Act, the State Government reduced the sales tax payable on the sales turnover of hand-made washing soaps by a dealer employing less that twelve persons to three per cent. The said notification read as follows :

(3.) Under section 8-A, the State Government may by notification make exemption and reduction in respect of any tax payable under the Act on the sale or purchase of any specified goods or class of goods at all points in the series of sales by successive dealer or by any specified class of persons in regard to the whole or any part of their turnover. Section 8-A of the Act, which is relevant for purposes of this case, reads as follows :