KRISHNA VILAS TOURIST HOTEL Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) The petitioners in these writ petitions are hoteliers running restaurants with a lodge attached. The assessments for the years 1976-77 and 1978-79 completed under section 12(3) of the Karnataka Sales Tax Act, 1957 ("the Act" for short), are challenged in these writ petitions. The writ petitions are entertained in view of the additional grounds urged in these petitions, raising the question of validity of section 2(t) of the Act, as amended by Act 23 of 1983, being ultra vires of section 4 of the Constitution (Forty-sixth Amendment) Act, 1982.

(2.) The challenge is also to the validity of explanation (3A) inserted by Karnataka Act 23 of 1983 to the definition of "sale" in the Act which was inserted with retrospective effect from 1st October, 1957.

(3.) Explanation (3A), reads as follows : "Every transaction of supply by way of or as a part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration, shall be deemed to be a sale of those goods by the person making the supply and purchase of these goods by the person to whom such supply is made."