9911796707
TMI Blog1990 (6) TMI 197X X X X Extracts X X X X X X X X Extracts X X X X ..... h July, 1981. In exercise of the powers conferred by section 8A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), the Government of Karnataka hereby reduces, with effect from 1st day of August, 1981, the tax payable under the said Act on the sale of 'articles of gold and silver' from four per cent multi-point to two per cent multi-point and on the sale of 'bullion and specie' from 2 per cent single point to 1 per cent single point." The period of assessment relating to the present case is from 28th October, 1981 to 15th November, 1982. The aforesaid notification dated 10th July, 1981 was in force up to 31st March, 1982 and accordingly in respect of the turnover of the petitioner relating to articles of gold and silver up to 31st March, 1982, the tax leviable was at 2 per cent. With effect from 1st April, 1982, the Act was amended by Act No. 13 of 1982 and the rate of tax on the sale of gold and silver articles was raised from 4 per cent to 5 per cent. In view of sub-section (3A) of section 8A of the Act, the notification issued on 10th July, 1981, stood automatically cancelled on account of the increase in the rate of tax. Therefore, with effect from 1st April, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be in force until it was withdrawn by the State Government. In support of this contention, the petitioner relied on the judgment of this Court in the case of K. Janardhana Acharya v. State of Karnataka [1980] 46 STC 375; (1980) 2 Kar LJ 145. The Commissioner rejected the contention on the ground that the above case was decided prior to introduction of sub-section (3A) of section 8A of the Act and, therefore, was of no assistance to the petitioner. The Commissioner, however, relied on the judgment of this Court in the case of S.V. Patwardhan v. State of Karnataka [1984] 57 STC 10, in which it was held that section 8A (3A) has the effect of cancelling the notification issued under section 8A(1)(a) of the Act though not the notification issued under section 8A(1)(b) of the Act. The Commissioner was of the view that the notification dated 10th July, 1981 was one issued under section 8A(1)(a) of the Act and therefore it stood automatically cancelled with the increase of rate with effect from 1st April, 1982. Accordingly, the Commissioner directed that on the turnover of sale of gold and silver articles of the petitioner during the period from 1st April, 1982 to 12th August, 1982, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on in the rate of tax payable under the Act on the sale or purchase of goods liable to tax under the Act. Clause (b) of subsection (1) empowers the Government to grant exemption or reduction in the rate of tax in respect of specified clasp of persons in regard to the whole or any part of the turnover. Sub-section (3) of section 8A empowers the Government to cancel or vary any notification issued under sub-section (1). Sub-section (3A) was introduced to bring about automatic cancellation of the notification issued by the State Government under clause (a) of section 8A (1) of the Act, with effect from the date from which, by an amendment to the Act, the rate of tax on any goods is changed. 8.. A reading of the contents of the notification dated 10th July, 1981, extracted earlier, indicates that it is a notification granting concessional rate for the goods specified therein, namely, sale of gold and silver articles. Therefore, the notification squarely falls under clause (a). From this it follows that when by the amendment of the Act by Act No. 13 of 1982 with effect from 1st April, 1982, the rate of tax was changed from 4 per cent to 5 per cent on gold and silver articles, the noti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, as sub-section (3A) only refers to a notification under clause (a) and not clause (b). In the present case, as pointed out earlier, the notification dated 10th July, 1981, on which the petitioner relies, was issued under clause (a) and therefore it stood automatically cancelled with effect from 1st April, 1982, on which date the rate of tax was revised from 4 per cent to 5 per cent by an amendment to the Act by Act No. 13 of 1982. Therefore the decision in the case of Krishna and Co. [1983] 54 STC 263 (Kar); (1983) 1 Kar LJ 130 is also of no assistance to the petitioner. 10.. For the aforesaid reasons, we hold that the view taken by the Commissioner that the concessional rate of 2 per cent fixed by notification dated 10th July, 1981 was not available from 1st April, 1982 up to 12th August, 1982 by the force of sub-section (3A) of section 8A of the Act, was correct. 11.. At this stage, the learned counsel for the petitioner submitted that another illegality had been committed in all the three orders, in respect of which the petitioner was entitled to relief. The learned counsel submitted that though the total turnover of the petitioner commencing from 28th October, 1981 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t he was entitled to a concessional rate at 2 per cent for the period between 1st April, 1982 and 12th August, 1982 were to be rejected by this Court, he was entitled to an order directing the Commissioner to levy tax at the rate of 5 per cent only in respect of the turnover relating to the period commencing from 1st April, 1982 and ending on 12th August, 1982. Sri H.L. Dattu, the learned High Court Government Pleader, fairly conceded that the turnover of the appellant was not Rs. 3,68,542.83 for the period between 1st April, 1982 and 12th August, 1982 and it was Rs. 1,37,342 according to the monthly returns filed by the petitioner. Therefore, it is clear that the rate of tax at 5 per cent has to be levied only on the said turnover relating to the period between 1st April, 1982 and 12th August, 1982. 14.. In the result, we make the following order: (i) The appeal is partly allowed. (ii) The order of the Commissioner in so far he held that the rate of tax payable on the turnover of sale of gold and silver articles during the period from 1st April, 1982 to 12th August, 1982 was 5 per cent, is upheld. (iii) The Commissioner, however, is directed to modify the order restricti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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