9911796707
TMI Blog1997 (6) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... 84, dated March 3, 1986 the rate of tax applicable on such sales was only to the maximum extent of 4 per cent. The said notification reads as under: Sl. No. 200 NOTIFICATION No. FD 71 CSL 84, Bangalore, dated 3rd March, 1986 S.O. No. 479, Karnataka Gazette, dated 6th March, 1986. In exercise of the powers conferred by section 8A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957), and in supersession of the Notification No. FD 142 CSL 79, dated 27th December, 1979, the Government of Karnataka, hereby reduces with immediate effect, the rate of tax payable under section 5 of the said Act in respect of sales to departments of Government of India or Government of Karnataka or Government of any other State located in Karnataka, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithies, Mandal Panchayat and Nyaya Panchayat Act, 1985. Sub-section (2) of section 138 of the Act reads as under: "Every Zilla Parishad shall be a body corporate by the name of '........Zilla Parishad', shall have perpetual succession and a common seal and subject to such restrictions as are imposed by or under this or any other enactment, shall be vested with the capacity of suing or being sued in its corporate name, of acquiring, holding and transferring property movable or immovable, whether without or within the limits of the areas over which it has authority, of entering into contracts and of doing all things, necessary, proper or expedient for the purpose for which it is constituted." 4.. Similarly, the Nationalised Banks as under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ways. It may be either established by statute or incorporated under a law such as the Companies Act, 1956 or the Societies Registration Act, 1860. Where a corporation is wholly controlled by Government not only in its policy-making but also in carrying out the functions entrusted to it by the law establishing it or by the charter of its incorporation, there can be no doubt that it would be an instrumentality or agency of Government. But ordinarily where a corporation is established by statute, it is autonomous in its working, subject only to a provision, often times made, that it shall be bound by any directions that may be issued from time to time by Government in respect of policy matters. So also a corporation incorporated under law is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inclusive or exhaustive test which would adequately answer this question. There is no cut and dried formula which would provide the correct division of Corporations into those which are instrumentalities or agencies of Government and those which are not." 7.. Again in the case of State of Punjab v. Raja Ram AIR 1981 SC 1694 at paragraph 5 it has been pointedly held that: "A Government department has to be an organisation which is not only completely controlled and financed by the Government but has also no identity of its own. The money earned by such a department goes to the exchequer of the Government and losses incurred by the department are losses of the Government. The corporation, on the other hand, is an autonomous body capable o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f tax could have been granted in respect of sales effected to the nationalised banks. But so far as the sales effected to the Zilla Parishads are concerned, it appears to hive fallen in error in not granting such benefit in respect of sales effected to the Zilla Parishads in Karnataka even on or after January 23, 1989, to which in our opinion the petitioner was entitled to. 9.. Accordingly, the appeal is allowed only to the extent that if the petitioner has effected any sale to Zilla Parishads, in Karnataka as envisaged in the notification under consideration on or after January 23, 1989, then such sales will be subject to levy of tax at 4 per cent as provided in the aforesaid notification. No costs. Appeals allowed. - - TaxTMI - T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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