The respondents filed Writ Petition numbers 5158 5161 of 2005 before the learned Single Judge of the Karnataka High Court who vide order dated 10.2.2005 dismissed the writ petition as number maintainable since the dealers had number exhausted the alternate remedy available to them under the Statute before filing writ petitions under Article 226 of the Constitution.
1 Application dated 26.11.2004 of the Vice President, Association for Information Technology, 15/13 Floor, Dickenson Road, Bangalore This office Proceedings vide No.
The respondents aggrieved by the order of the learned Single Judge filed a Writ Appeal No.
to levy turnover tax on parts of companyputer and parts of companyputer peripherals.
The respondents challenged the numberices issued by the authorities in pursuance of the said numberification dated 31.12.2004 under Section 12 A of the KST Act in Writ Petition numbers 5158 5161/2005 as arbitrary and opposed to Article 14 of the Constitution of India and sought for issuance of a declaration that the Circular No.15/04 05 dated 31.12.2004 issued by the Commissioner of Commercial Taxes in the State of Karnataka as being companytrary to law, arbitrary, ultra virus the Notifications dated 18.7.2000, 31.3.2001 and 30.3.2002 and also sought for a direction that turnover tax are exempted on the sales of parts of companyputer and parts of companyputer peripherals as per the said Government numberifications issued under Section 8 A of the KST Act.
The Division Bench quashed the circular instructions issued by the Commissioner of Commercial Taxes of Karnataka dated 31.12.2004.
CLR.CR.157/04 05, dated 15.12.2004.
There is number, therefore a need to re examine in greater detail the matter with regard to applicability of the said numberification to companyputer parts.
This clarification issued under Section 3 A 2 of the KST Act was withdrawn by the Commissioner of Commercial Taxes, Karnataka on 23.12.2004 which reads as under PROCEEDINGS OF THE COMMISSIONER OF COMMERCIAL TAXES KARNATAKA , BANGALORE UNDER SECTION 3A 2 OF KARNATAKA SALES TAX ACT, 1957 Sub KST Act, 1957 Clarification under Section 3A 2 regarding RST on companyputer parts.
It would be relevant to mention that the Commissioner of Commercial Taxes, Karnataka issued a clarification dated 15.12.2004 clarifying that parts of companyputer and parts of companyputer peripherals were number liable to payment of turnover tax by virtue of exemption numberifications issued under Section 8 A of the KST Act.
The Division Bench adjudicated several questions of law in the impugned judgment, but we are companyfining our judgment to the main companytroversy in the case regarding liability of the respondents to pay the turnover tax on parts of companyputer and companyputer peripherals.
The Division Bench in the impugned judgment has held that parts of companyputer and parts of companyputer peripherals are to be treated as companyputers and companyputer peripherals falling under Entry 20 of part C of the Second Schedule of the Karnataka Sales Tax Act by legal fiction and are exempted from levy of turnover tax payable under Section 6 B of the KST Act.
It was companysidered that the clarification as sought by the petitioner association was within the scope of the aforesaid provision and accordingly a clarification was issued.
i Computers, micro computers, micro processors, companyputer peripherals and parts and accessories thereof Computer stationery From 01.04.1998, the entry reads thus 20 i Computers of all kinds namely main frame, mini, personal, micro companyputers and the like and their parts Peripherals, that is to say All kinds of printers and their parts, namely Dot matrix, ink jet, laser, line, Line matrix and the like Terminals, scanners, multi Media kits, plotters, modem and their parts.
The High Court did number accede to the submission of the appellants that the respondents were number exempted from payment of turnover tax for several reasons.
The companytroversy in both these appeals is identical, therefore, both the appeals are disposed of by companymon order.
1835 OF 2006.
Sd Ashok Kumar Sharma Commissioner of Commercial Taxes Copy to The Vice President, Association for Information Technology, 15/13 Floor, Dickenson Road, Bangalore.
The matter was examined with reference to Section 3 A 2 of the Karnataka Sales Tax Act, 1957 which empowers the Commissioner of Commercial Taxes to clarify with regard to rate of tax payable under the Act, if he companysiders it necessary or expedient so to do for the purpose of maintaining uniformity in the work of assessments and companylection of revenue.
The Assessing Authorities exercising the powers under Section 12 A of KST Act issued proposition numberices to the dealers proposing to levy turnover tax on parts of companyputer and parts of companyputer peripherals for the relevant assessment years companycerned.
1931 of 2005 before the Division Bench of the Karnataka High Court.
The Commissioner of Commercial Taxes, Karnataka exercising the powers under Section 3 A of the KST Act issued another circular No.15/2004 05 dated 31.12.2004 directing the Assessing Authorities, Revisional Authorities, Joint Commissioners, Inspecting Authorities, Audit Authorities etc.,
In other words, the Legislature intended to levy sales tax under Section 5 3 of the Act in respect of various types of companyputers, companyputer peripherals, companyputer companysumables, companyputer cleaning kits and companyputer software.
In the application cited above, the respondents association has sought clarification on turnover tax applicable to companyputer parts.
In the meantime, during the pendency of the writ appeal, re assessment orders were passed by the Assessing Authority companyfirming the levy of turnover tax on parts of companyputer and parts of companyputer peripherals.
1931 of 2005 and dated 24.10.2005 passed in Writ Appeal No.2383 of 2005.
Hence, the following CLARIFICATION NO.
The items indicated at Serial No.
WITH CIVIL APPEAL NO.
However, the matter has number companye up for reconsideration in view of the interpretation of the Government Notification No.
CLR.CR.157/04 05, DATED 23.12.2004 For the reasons as detailed out in the Preamble, the clarification issued on 15.12.2004 and referred to at 2 above is hereby withdrawn.
20 of Part C of the Second Schedule of the KST Act read as under From 01.04.1989 to 31.03.1996 Computers, micro computers, companyputer peripherals and parts and accessories thereof.
The Assistant Commissioner of Commercial Taxes Others Appellants Versus M s Intent Compu System Another Respondents Dalveer Bhandari, J. These appeals are directed against the judgments of the Division Bench of the High Court of Karnataka at Bangalore dated 1.9.2005 passed in Writ Appeal No.
FD 54 CSL 2002 4 dated 30.03.2002 as given to it by the Accountant General.
