TIRUPATI STEELS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THE petitioner is a dealer registered under the provisions of the Karnataka Sales Tax Act and is a proprietory concern of Basappa Bannappa Tumbagi. He is dealing in iron and steel including steel ingots, steel bars etc. The item sold by the petitioner are declared goods falling under section 14 of the Central Sales Tax Act 1956. Iron and Steel are taxable at single point i. e. , the first point. The grievance of the petitioner is that the proviso to Explanation-ll appended to the 4th Schedule inserted by Act No. 5/96 is discriminatory. Discrimination is alleged in respect of dealing of goods which are manufactured by the new exempted unit and those manufactured by old unit or such new unit to which the benefit of deferment is given under Section 19-C of the act.

(2.) IN order to appreciate the contentions of the learned Counsel for the parties, the provisions of section 5 (4) of the Act which is a charging Section are reproduced hereunder:

(3.) IT is not in dispute between the parties that iron and steel is taxable at single point which is first point and 4% rate of tax is specified under entry-2 of 4th Schedule of the Act. Since 1-4-1978 if iron and steel in any form is used for manufacture of" iron and steel in other form and sold in Karnataka, the tax paid on the raw material was to be reduced from the liability on the sale of finished product.