M/Smarvel Enterprises vs Government Of Karnataka on 17 June, 2013

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Karnataka High Court

M/Smarvel Enterprises vs Government Of Karnataka on 17 June, 2013

Bench: Ram Mohan Reddy

                          -1-
                                        W.P.No.81546/2010




        IN THE HIGH COURT OF KARNATAKA
           CIRCUIT BENCH AT GULBARGA

       DATED THIS THE 17TH DAY OF JUNE, 2013

                       BEFORE

   THE HON'BLE MR.JUSTICE RAM MOHAN REDDY

           W.P. No. 81546 OF 2010 (T-RES)

BETWEEN:

M/S MARVEL ENTERPRISES
H.NO.4-408/13, NEAR AKABRI MASJID
KHAMAR COLONY, GULBARGA - 585 104
(REPRESENTED BY SRI AKABAR HUSSAIN
S/O MD. ASAGARALI, PROPRIETOR)
                                          ... PETITIONER

(BY SRI. L.B.BANNIKOPPA, ADVOCATE)

AND:

1. GOVERNMENT OF KARNATAKA
   REPRESENTED BY PRINCIPAL SECRETARY
   TO GOVERNMENT FINANCE DEPARTMENT
   VIDHANA SOUDHA,
   BANGALORE - 560 001

2. THE COMMISSIONER OF COMMERCIAL TAXES
   VANIJYA TERIGE KARYALAYA, I,
   GANDHINAGAR,
   BANGALORE - 560 009

3. THE ASSISTANT COMMISSIONER OF
   COMMERCIAL TAXES, LVO - 520,
   STATION BAZAR,
   GULBARGA - 585 102
                                        ... RESPONDENTS

(BY SRI. SHARANBASAPPA K BABSHETTY., HCGP)
                             -2-
                                          W.P.No.81546/2010




     THIS WRIT PETITION FILED UNDER ARTICLES 226 AND
227 OF THE CONSTITUTION OF INDIA PRAYING TO ISSUE A
WRIT OF DECLARATION, DECLARING THAT SUB SECTION (5) OF
SEC. 4 OF THE KARNATAKA VALUE ADDED TAX ACT 2003, AS
INSERTED WITH EFFECT FROM 1ST APRIL 2010 VIDE SEC. 3 (IV)
OF KARNATAKA VALUE ADDED TAX (AMENDMENT) ACT, 2010
(KARNATAKA    ACT    NO.4/2010    -   ANNEXURE   -     A    AS
UNCONSTITUTIONAL AND ULTRA VIRES ARTICLE 245 AND 246
READ WITH ARTICLE 366 (29-A) AND ENTRY 54 OF LIST II OF
THE VII SCHEDULE TO THE CONSTITUTION OF INDIA, ETC.

     THIS WRIT PETITION COMING ON FOR PRELIMINARY
HEARING IN 'B' GROUP THIS DAY, THE COURT MADE THE
FOLLOWING:


                           ORDER

Though this petition is listed for orders, with the consent of the learned counsel for the petitioner is finally heard and disposed of by this order.

This petition challenging the vires of sub-section (5) of Section 4 of the Karnataka Value Added Tax Act, 2003 as inserted with effect from 1st April 2010 vide Section 2 (iv) of Karnataka Value Added Tax -3- W.P.No.81546/2010 (Amendment)Act, 2010 (Karnataka Act No.4 of 2010), deserves to be allowed in the light of order dated 20.11.2012 in W.P.No.11957/2010 in ITC Limited Vs. State of Karnataka. The learned Single Judge having followed the opinion of the Apex Court in State of Rajasthan Vs. Rajashtan Chemists Association (2006) SCC 733, declared that sub-section (5) of Section 4 of the Karanataka Value Added Act 2003 providing for levy of Tax on the maximum retail price incicated on the label of the container or pack thereof, as beyond the Legislative competence of the State under Entry 54 of List II of the Seventh Schedule of the Constitution of India.

Petition is ordered, accordingly.

Sd/-

JUDGE.

RPH

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