AIR 2007 (NOC) 940 (KAR.) = 2007 (2) AIR KAR R 141 (DB) ::2007 (2) AIR Kar R 141

Karnataka High Court

Hon'ble Judge(s): R. Gururajan, N. Ananda , JJ

(A) Karnataka Tax On Entry of Goods Act (1979) S. 3, Sch. 1, Entries 66, 70 — Entry tax on packing material — Polypropylene bags, used as packing material — Specific entry dealing with said material is Entry No 70 1999 AIHC 2181 (Kant), Disting (Para 61)

(B) Karnataka Tax On Entry of Goods Act (1979) S. 3 — Entry Tax on Light Diesel Oil (LDO) — LDO being petroleum product falls under Notification dated 31-3-1998 and levy of tax is 2% — Subsequent omission of ‘diesel’ in subsequent Notification dated 14-5-1998 enhancing rate of tax to 5% — By itself, will not result in enhancing tax on all petroleum products (Para 72)

(C) Karnataka Tax On Entry of Goods Act (1979) S. 21 — Levy of penalty — Polypropylene bags and light diesel oil — Penalty levied on ground that assessee had not disclosed these two items for purpose of taxation — Material on record, however, shows that assessee had chosen to contest both items on sustainable grounds — No penalty can be levied (Para 8)