M/S. FALCON TYRES LTD. versus STATE OF KARNATAKA AND ORS.

M/S. FALCON TYRES LTD. versus STATE OF KARNATAKA AND ORS.

Rubber is specifically excluded from the definition of 'agricultural produce' under Section 2(A)(1) of the Act, and since exemption from entry tax applies only to goods listed in the Second Schedule (tea, coffee, cotton), rubber is not entitled to exemption. Legislative intention in the statute must be given effect, and the Court is restricted to the definition in the Act.

Parties
Appellant: Mis. Falcon Tyres Ltd.; Respondents: State of Karnataka and Ors.
Jurisdiction
India
Judgment Date
20 July 2006
Procedural Posture
Civil Appeal / Appeal From High Court Decision
Outcome
appeal dismissed
Legal Topics
Entry Tax, Exemption, Interpretation of 'agricultural Produce'
Taxation Statutory Interpretation Entry Tax Exemption Interpretation of 'agricultural Produce'

Case Brief

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Parties

Mis. Falcon Tyres Ltd.

Appellant

State of Karnataka and Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Decision

Legal Issues

  1. 1 Whether rubber procured from neighbouring State for manufacturing tyres is entitled to exemption from entry tax under the Karnataka Tax on Entry of Goods Act, 1979

Ratio Decidendi

Rubber is specifically excluded from the definition of 'agricultural produce' under Section 2(A)(1) of the Act, and since exemption from entry tax applies only to goods listed in the Second Schedule (tea, coffee, cotton), rubber is not entitled to exemption. Legislative intention in the statute must be given effect, and the Court is restricted to the definition in the Act.

Court Disposition

appeal dismissed

Orders

  • appeal dismissed with costs