Sales tax exemption on beer turnover taxed before April 1990 was unavailable under section 5(1-A).

Beer purchased and taxed before 1 April 1990 was not eligible for exemption on subsequent sale under section 5(1-A) of the Karnataka Sales Tax Act, 1957. The provision, as amended from that date, imposed multi-point tax on beer and allowed deduction only for turnover already taxed under section 5(1-A) at the immediately preceding point of sale. Its separate proviso granted only a limited exemption for a specified prior period, and that protection did not extend to goods already taxed before the commencement of section 5(1-A). The statutory language was clear, so the appellant's reliance on interpretive authorities failed and the exemption claim was rejected.

---

---

Issues: Whether beer purchased and taxed before 1 April 1990 was entitled to exemption from tax on subsequent sale under section 5(1-A) of the Karnataka Sales Tax Act, 1957.

Analysis: Beer was earlier exigible at single-point tax under section 5(3)(a) read with the relevant schedule entry. Section 5(1-A), as amended with effect from 1 April 1990, imposed multi-point tax on beer and its first proviso allowed deduction only of turnover already taxed under that sub-section at the immediately preceding point of sale. The second proviso created a separate limited exemption for a specified prior period. Reading the provision as a whole, the exemption could not be extended to turnover that had suffered tax before the commencement of section 5(1-A). The cited authorities on interpretation did not assist the appellant because the statutory language here was clear and did not lead to absurdity.

Conclusion: The beer turnover purchased and taxed before 1 April 1990 was not exempt under section 5(1-A); the claim for exemption failed.

---