Charging provision prevails where no express exemption exists, and low priced pens remained taxable under the sales tax law.

Low priced pens were held taxable under the Karnataka Sales Tax Act, 1957 because section 5(1) operates as the charging provision unless goods are expressly brought within a special exemption or taxing schedule. The Court held that the Second Schedule entry for pens costing Rs. 10 and above did not imply an exemption for pens below that value, and no legislative omission could be supplied by interpretation. Exemption under sections 8 or 8-A had to be express, and the later section 8-A notification operated only prospectively. The assessment on turnover of low priced pens was therefore sustained.

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Issues: Whether low priced pens costing less than Rs. 10 per piece were exempt from tax under the Karnataka Sales Tax Act, 1957, or whether they were taxable under section 5(1) because only pens costing Rs. 10 and above were specified in the Second Schedule.

Analysis: Section 5(1) is the charging provision and applies to taxable turnover unless the goods are brought within a special taxing or exempting provision. Section 5(3)(a) applies only to goods specified in the Second Schedule and levies tax at the single point rate fixed thereunder. The Court held that the description in the Second Schedule of pens costing Rs. 10 and above did not, by implication, exclude pens costing less than Rs. 10 from taxation. The statutory language was clear, and there was no scope to infer a permanent legislative intention to exempt low priced pens or to supply an omission by interpretation. The Court also noted that exemption under section 8 or section 8-A would have to be express, and the later notification under section 8-A was only prospective.

Conclusion: Low priced pens were held taxable under section 5(1) of the Karnataka Sales Tax Act, 1957, and not exempt merely because the Second Schedule specified only pens costing Rs. 10 and above.

Final Conclusion: The revision petition failed, and the assessment to tax on the turnover of low priced pens was sustained.

Ratio Decidendi: Where the charging provision is clear, courts cannot infer an exemption or supply a legislative omission by interpretation; goods not expressly brought within a specific exemption or special schedule remain taxable under the general charging provision.

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