SC issues notice to Karnataka on imported sugar

New Delhi, Aug 31 (PTI) The Supreme Court has issued notice to the Karnataka government on a petition filed by a sugar importer challenging a High Court ruling that allowed levy of sales tax on imported sugar retrospectively. A bench headed by Justice S H Kapadia sought reply from the state government and the commercial taxes department on a petition filed by Shamanur Kallappa & Sons challenging the constitutionality of the retrospective imposition of sales tax on imported sugar. Challenging the Karnataka High Court verdict that upheld the tax department's order levying 4 per cent duty on the imported sugar from 1997-98, it said that prior to the amendment of the Karnataka Taxation Laws (Amendment) Act in 2001, sale of sugar, irrespective of place of manufacturing, was exempted from sales tax. However, the state vide the impugned amendment authorised the retrospective levy of tax on imported sugar by restricting the scope of the exemption only to sugar manufactured or produced in India, it added. "It would, therefore, be onerous and would also cause irreparable loss and injury to the petitioner if the respondents are permitted to retrospectively levy tax on sales of imported sugar between 1997-98 and 1999-2000 and recover the same from the petitioner," said the petition filed through advocate Gautam Narayan. According to the petition, even the apex court while upholding the Kerala High Court's judgement in 1985 had exempted imported sugar from sales tax. PTI

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