TaxTMI 
TaxTMI 
1990 (11) TMI 388
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....e sale of sugar-candy and sugar syrup. Originally it was thought by the assessing authority that the petitioners would be entitled to the exemption under entry No. 31B of the Fifth Schedule to the Karnataka Sales Tax Act, 1957. Accordingly, assessments were passed on 27th July, 1978, granting the benefit of exemption for the assessment year commencing 1st July, 1976 and ending by 30th of June, 1977. However, on 4th August, 1982, finding that it was no longer entitled to exemption, the Deputy Commissioner of Commercial Taxes (1st respondent) issued show cause notice proposing to review the order of the assessing authority on the ground that entry 31B under the Fifth Schedule, cannot be applied to the sale of sugar syrup, and therefore he ....
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....976 to 30th June, 1977, in the case of M/s. Kaypee Industries, Mysore Road, Bangalore (bearing K.S.T.R.C. No. 03310029-9 and C.S.T.R.C. No. 03360029-6) it was found that the orders passed by the Commercial Tax Officer, XII Circle, Bangalore, under section 12(2) of the Karnataka Sales Tax Act, 1957 read with rule 18(2) of the Karnataka Sales Tax Rules, 1957 (hereinafter called 'the Act and the Rules') on July 27, 1978 is irregular, erroneous and prejudicial to the interests of revenue for the following reasons: The assessing authority, i.e., the Commercial Tax Officer, XII Circle, Bangalore, in his order dated 27th July, 1978, passed for the assessment period from 1st July, 1976 to 30th June, 1977 has exempted the sales turnover from paym....
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....R. Nagaraj, Advocate and the counsel for the assesseefirm, has filed memo stating that he is awaiting the decision of the case bearing, S.T.R.P. Nos. 46 and 47 of 1978 which is pending before the honourable High Court of Karnataka, Bangalore, and for which he has requested for postponement of this case till the decision of the honourable High Court of Karnataka, Bangalore. Further endorsements dated 10th December, 1982 and 22nd February, 1983 for which the same reasons were assigned by him on 28th July, 1983 and 16th August, 1983, respectively. Again, further endorsements dated 1st September, 1983 and 5th October, 1983 were also served on the assessee-firm for which Sri R. Nagaraj, Advocate and counsel for the assessee-firm has approached a....
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....Karnataka Sales Tax Act, 1957, I pass the following order: (a) The assessment order dated 27th July, 1978 passed by the Commercial Tax Officer, XII Circle, Bangalore, for the period from 1st July, 1976 to 30th June, 1977 under section 12(2) of the Karnataka Sales Tax Act, 1957, is modified to the extent of levying sales tax on 'sugar syrup' to the tune of Rs. 7,41,485 at 4 per cent and additional tax at 7½ per cent under section 6B of the Karnataka Sales Tax Act, 1957, as indicated below: (b) The revised computation of total and taxable turnovers is as under: Amount of turnover: Rs. 9,39,207.82 Less: Deductions and exemptions: 1. Tax collected Rs. 9,355.31 2. Sale of sugar-candy Rs. 26,625.20 Rs. 35,980.51 ------------....
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....ned order cannot be sustained. 5.. In opposition to this, the learned counsel for the Revenue would draw our attention to the [1984] 56 STC 190 (Kar) Krishna Products v. State of Karnataka) where this point was squarely dealt with and it was held thereunder, that sugar syrup will not fall under entry 31B of the Fifth Schedule to the Karnataka Sales Tax Act, 1957. Therefore, the matter is no longer res integra. 6.. We find that [1989] 74 STC 51 (Kar) (Bagi v. Assistant Commissioner of Commercial Taxes) has no application to the facts of this case. Only when the transactions are of the character of inter-State sales, the question of applying section 14 of the Central Sales Tax Act, in relation to the declared goods would arise. Though r....