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Judgment
In these two petitions the identical questions which are raised were considered by the Supreme Court in M/s. Andhra Steel Corporation v Commissioner of Commercial Taxes in Karnataka, AIR 1990 SC 1912, wherein Explanation (II) added by Karnataka 13 of 1982 to Schedule. IV was held to be discriminatory as under that provision sale of finished goods manufactured out of imported raw material is taxed but the sale of finished goods manufactured out of local purchased raw material is not taxed and that amounts to hostile discrimination in the rate of tax or quantum of tax and consequently, the Supreme Court held that the provision is ultra vires the Constitution. In view of this declaration, the petitioners have to succeed. It is not necessary to again declare that explanation of rule in Schedule IV of the Karnataka Sales Tax Act as invalid. Respondents had to work out taxes due from the petitioner in the light of the decision referred to above.
Writ petitions shall stand disposed of accordingly.