Turnover threshold and CST registration timing under sales tax law determine liability on sale of inter-State purchased goods.

Section 5(2) of the Karnataka Sales Tax Act imposes tax on the sale of specified goods regardless of the dealer's total turnover, so the ordinary minimum turnover threshold does not defeat liability. The provision also requires that the dealer be registered under the Central Sales Tax Act at the time the charge arises on sale, not merely at the time of purchase. On that reading, prior registration at purchase was insufficient; because the dealer was not registered in the relevant assessment year at the time of sale, liability under section 5(2) did not arise.

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Issues: (i) Whether liability to tax under section 5(2) of the Karnataka Sales Tax Act, 1957 was excluded because the dealer's turnover was below the minimum prescribed under that Act; (ii) whether the expression "a dealer registered under the Central Sales Tax Act, 1956" in section 5(2) refers to registration at the time of purchase of the goods or at the time of their sale.

Issue (i): Whether liability to tax under section 5(2) of the Karnataka Sales Tax Act, 1957 was excluded because the dealer's turnover was below the minimum prescribed under that Act.

Analysis: Section 5(2) expressly provides that a dealer falling within its scope is liable to pay tax on the sale of the relevant goods "whatever be the quantum of his total turnover". The provision therefore overrides any reliance on the ordinary turnover threshold for exemption from liability under the Karnataka Act.

Conclusion: The contention based on the minimum turnover limit failed and was against the assessee.

Issue (ii): Whether the expression "a dealer registered under the Central Sales Tax Act, 1956" in section 5(2) refers to registration at the time of purchase of the goods or at the time of their sale.

Analysis: The liability under section 5(2) is tied to the sale of goods purchased in inter-State trade on which concessional tax under section 8(1)(b) of the Central Sales Tax Act, 1956 had been levied. Reading the provision as a whole, the relevant statutory description of the dealer must exist at the time of sale, because the charge is attracted upon sale of the goods. The Court therefore rejected the view that prior registration at the time of purchase alone was sufficient.

Conclusion: The expression refers to registration at the time of sale, and the assessee, not being so registered in the relevant assessment year, was not liable under section 5(2).

Final Conclusion: The revisional challenge succeeded, the Tribunal's order was set aside, and tax liability under section 5(2) was negatived for the relevant assessment year in respect of the goods in question.

Ratio Decidendi: A statutory description attaching liability to a "dealer registered" under the Central Sales Tax Act is to be construed with reference to the point of sale where the tax charge is imposed on sale of goods, and an express non obstante turnover clause excludes reliance on the ordinary minimum turnover threshold.

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