iii Karnataka Entertainments Tax Act, 1958.
Their business activities inter alia include business of leasing machinery, equipment and motor vehicles.
Originally the levy was on taxable turnover.
Karnataka Sales Tax Act, 1957.
157 158 of 2006 WITH Civil Appeal Nos.
Keeping in view the directions companytained in the Circular of 23.10.1999 re assessment proceedings were initiated and or action in terms of Section 21 for revision was initiated.
An amendment was brought in 1992 to the said provision substituting the expression total turnover for taxable turnover.
iv Karnataka Agricultural Income Tax Act, 1957.
1787 /2007 SLP Nos.
A Division Bench of the High Court by its judgment in Shetty Leasing India Pvt.
1792 /2007 SLP Nos.
1790 /2007 SLP No.
On 1.4.1986, Section 5 C was again amended with retrospective effect restoring the original position i.e. substituting the expression taxable turnover for total turnover.
Both these actions related to companypleted assessments.
The same was questioned by several assessees.
1035 39/2006 Civil Appeal Nos.
1786 /2007 SLP Nos.
Section 5 C of the Act deals with levy of tax on transfer of the right to use the goods which is treated as a transfer for the purpose of levy of sales tax within the State.
Background facts in a nutshell are as follows Appellants are dealers registered under the Karnataka Sales Tax Act, 1957 in short the Act .
1793 /2007 SLP Nos.
1462 63/2006 Civil Appeal Nos.
1369 of 2006 Civil Appeal No.
Ltd. vs. Union of India and Ors.
1219 38/2006 Civil Appeal Nos.
1482 1501/2006 Civil Appeal Nos.
1791 /2007 SLP Nos.
1506 09/2006 Civil Appeal Nos.
6197/2006 Civil Appeal Nos.
6733/2006 Civil Appeal Nos.
6884/2006 Civil Appeal Nos.
9232/2006 Civil Appeal Nos.
8862/2006 Civil Appeal No.
1789 /2007 SLP Nos.
CIVIL APPEAL NOS.
1785 /2007 SLP Nos.
1784 OF 2007 Arising out of SLP C Nos.
1794 /2007 SLP Nos.
1370 of 2006 Dr. ARIJIT PASAYAT, J. Leave granted in special leave petitions.
1788 /2007 SLP Nos.
On 12.4.1996, a Circular was issued in terms of Section 3 A of the Act providing that the goods which have suffered tax under Section 5 of the Act cannot be again taxed in terms of Section 5 C. In other words, where the goods have suffered tax on the actual sale cannot attract levy of tax again.
Subsequently, on 23.10.1999 another Circular was issued stating that the earlier Circular did number reflect the actual position in law and, therefore, there was numberbar on the transaction being taxed in terms of Sections 5 and 5 C. On 1.4.2000 Section 5 C was amended by insertion of a proviso which in essence re iterated the view expressed in the Circular dated 12.4.1996.
The circular, as numbered above, was issued under Section 3 A of the Act read with Rule 6 4 of the Karnataka Sales Tax Rules, 1957 in short the Rules .
Challenge in these appeals is to the legality of the judgment rendered by a Division Bench of the Karnataka High Court holding that the Circular dated 23.10.1999 Circular No.31/1999 2000 is valid and Circular No.5/1996 97 dated 12.4.1996 was inoperative.
