KUMAR AGENCIES Vs. COMMISSIONER OF COMMERCIAL TAXES

JUDGEMENT

(1.) In these two writ petitions the petitioners who are dealers in cycles, cycle parts and accessories, have challenged the proposition notices issued by the assessing authorities proposing to tax the sale turnover in "cycle locks" under entry 150 of the Second Schedule to the Karnataka Sales Tax Act ("the Act" for short). The petitioners have also challenged the clarification issued by the Commissioner of Commercial Taxes, that cycle locks are taxable under entry 150 of the Second Schedule at 10 per cent as a lock falling under the said entry, which reads as follows : "All kinds of padlocks and locks".

(2.) A brief legislative history relating to the levy of tax on the sale of cycle locks under the Act is necessary to be stated in order to properly appreciate the petitioners' case and decide the point in controversy.

(3.) Entry 14 of the Second Schedule to the Act, as was found in the Act right from the inception, as inserted by the Act 25 of 1957, read as follows : "14. Bicycles, tandem cycles and cycle combinations."