TMI Blog1990 (10) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... se of the powers conferred by section 8-A of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957) the Government of Karnataka hereby reduces with immediate effect, the rate of tax payable by a dealer under section 5 of the Act, on television sets and components manufactured in Karnataka to two per cent." The manufacturers of television sets outside the State had to pay tax under entry 53-A of the Second Schedule at 10 per cent up to March 31, 1986, which was enhanced to 13 per cent from April 1, 1986. By notification dated March 26, 1986, the tax on all television sets was reduced from 13 per cent to 4 per cent. By notification dated June 20, 1986 the tax payable by the dealer under section 5 of the Act on television sets, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of Gujarat [1988] 70 STC 52 the Supreme Court had occasion to deal with a similar notification issued by the State of Gujarat. By notification issued on March 29, 1986, a new entry in the Schedule, specifically to deal with electronic goods manufactured in the State of Gujarat, was introduced. By the said notification the rate of sales tax in respect of television sets imported from outside the State was reduced from 15 per cent to 10 per cent and for goods manufactured within the State, the sales tax was reduced to 1 per cent. The petitioner contended before the Supreme Court that by prescribing a lower rate of tax in respect of goods manufactured within the State, the State Government had created invidious discrimination which adversely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate to make laws affecting trade, commerce and intercourse. It enables the imposition of taxes on goods from other States if similar goods in the State are subjected to similar taxes, so as not to discriminate between the goods manufactured or produced in that State and the goods which are imported from other States. This means that if the effect of the sales tax on tanned hides or skins imported from outside is that the latter becomes subject to a higher tax by the application of the proviso to sub-rule (2) of rule 16 of the Rules, then the tax is discriminatory and unconstitutional and must be struck down." The notifications challenged in this writ petition also bring about discrimination in the matter of levy of sales tax on televisio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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