The Hindu : Karnataka News : Court admits petition of LPG firm on tax

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Tuesday, Jan 22, 2008
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Karnataka

Karnataka

Court admits petition of LPG firm on tax

Staff Reporter

BANGALORE: The Karnataka High Court on Monday admitted a petition of a liquefied petroleum gas (LPG) firm from Bangalore, which had challenged the levy of two per cent entry tax by the State on metal gas cylinders.

While the State contended that the metallic cylinders are packing material and that LPG is packed in it, the firm, Jyothi Gas, said that the tax is illegal and illogical as the cylinders cannot be classified as packing material.

It said the levy of entry tax by the Commercial Tax Department on metallic cylinders defies logic.

It said the department had decided to levy entry tax of 2 per cent on the cylinders it had imported from outside the State.

The department, it said, had issued notices for the assessment years 1994-95, 1995-96, 1996-97 and 1997-98 on the value of the cylinders, saying that these items along with the regulators had been procured from outside the State.

A Division Bench comprising Justice Deepak Verma and Justice K.L. Manjunath admitted the petition, ordered issue of notices to the Tax Department and adjourned further hearing on the case.

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