1991 (1) TMI 420

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....a period of two years from the date of the publication of the notification. All the petitioners are dealers in ceramic tiles manufactured outside the State. The contention of the petitioners is that by virtue of the notification issued by the Government giving total exemption to the tiles manufactured in the notified industrially backward areas in the State of Karnataka, a discrimination is brought about in the matter of levy of sales tax on the same class of dealers. 2.. The effect of the notification is that the petitioners have to pay the tax on their turnover, whereas the manufacturers within the State have the benefit of exemption, if they satisfy the conditions of the notification. The contention is that discrimination is brought a....

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....otification (sic). 3.. In another case Bharat General and Textile Industries Ltd. v. State of Maharashtra [1989] 72 STC 354 (SC) the notification of Government of Maharashtra granting full tax exemption under the Bombay Sales Tax Act, 1959, to new units started in backward areas, was challenged. In the said case, the State of Maharashtra had granted total exemption to new units producing edible as well as non-edible oil. The said notification was upheld by the Supreme Court on the ground that the concession was *Their Lordships of the Supreme Court have, on the contrary, struck down the notification reserving a lower rate for local manufacturers: See [1988] 70 STC 52 at page 56-Ed. extended by the State Government by exercise of the powe....

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....C, exempting the sale of tiles manufactured in units located in industrially backward areas in the State, brings about any discrimination in the matter of levy of sales tax. 6.. Applying the ratio of the three (sic)* decisions of the Supreme Court referred to supra, the writ petitions are dismissed. 7.. An application is made by Murudeshwar Ceramics Ltd. in W.P. No. 17499 of 1988 seeking to implead themselves as respondents in the case. In view of the order dismissing the writ petitions, it is unnecessary to make any order on the I.A. Hence, it is dismissed. 8.. An application is made in W.P. Nos. 5603 to 5605 of 1989 by the petitioners raising additional ground alleging that M/s. Murudeshwar Ceramics Industry, is not established i....