NAVEEN TRADERS Vs. STATE OF KARNATAKA

JUDGEMENT

(1.) THIS is an appeal filed assailing the order of the Additional Commissioner of Commercial taxes, Belgaum zone, Belgaum, dated April 18, 1995.

(2.) THE brief facts of the case are that the appellant is a dealer registered under the Karnataka sales Tax Act, 1957 (hereinafter called as "the Act") dealing in wholesale of the Indian-made foreign liquors (IMFL ). The appellant filed the return of turnover disclosing the total and the taxable turnover of Rs. 35,47,530. 50 and Rs. 12,75,228. 47 respectively for the year 1990-91. The assessment was determined fixing the total turnover at Rs. 35,79,588. 13 and the taxable turnover at Rs. 14,25,173. 86 and amongst other things held that beer purchased within the State from the breweries during the accounting year 1989-90 and held in closing stock on March 31, 1990 which is the pending stock for the year 1990-91 at Rs. 1,93,330 have to suffer KST under section 5 (3) and not Section 5 (1-A) and so it is exigible to tax under Section 5 (1-A) at 45 per cent without any set-off and accordingly assessed the sales turnover of beer of Rs. 1,19,613. 11 to tax at 45 per cent which was claimed as exemption by the appellant. Against that order, the appellant filed an appeal. The appellate authority confirmed the same.

(3.) THE learned counsel for the appellant contended that the stocks worth Rs. 1,19,613. 11 have been purchased earlier to April 1, 1990 during the assessment year 1989-90 and on which the tax at the rate of 36 per cent was paid by the appellant. Therefore, the appellant is exempted to pay the tax in view of the amended Section 5 (1-A) incorporated in the Act which came into force on april 1, 1990 and the authorities erred in not giving the benefit available to the appellant.