https://www.taxtmi.com/caselaws?id=159913 The proviso to Explanation II to the Fourth Schedule of the Karnataka Sales Tax Act, 1957, inserted by Karnataka Act No. 5 of 1996, was treated as discriminatory because it denied the concessional rate where input goods were exempt under section 8-A or under deferment under section 19-C, even though the declared goods and first-point tax structure remained the same. The differentiation turned on the origin of the input goods rather than any real distinction in the finished goods, creating a class within a class and making the incentive for new units illusory. Applying reasonable classification and equality principles, the proviso was held to lack a rational basis and was struck down as violative of Article 14. en-us Tue, 28 Jul 1998 00:00:00 +0530 Tue, 03 Dec 2013 18:08:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=159913 The proviso to Explanation II to the Fourth Schedule of the Karnataka Sales Tax Act, 1957, inserted by Karnataka Act No. 5 of 1996, was treated as discriminatory because it denied the concessional rate where input goods were exempt under section 8-A or under deferment under section 19-C, even though the declared goods and first-point tax structure remained the same. The differentiation turned on the origin of the input goods rather than any real distinction in the finished goods, creating a class within a class and making the incentive for new units illusory. Applying reasonable classification and equality principles, the proviso was held to lack a rational basis and was struck down as violative of Article 14. Case-Laws VAT and Sales Tax Tue, 28 Jul 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=159913