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Judgment
Though this petition is posted in the orders list, with the consent of the learned Counsels appearing for the parties, this petition is taken up for final hearing and disposed of by this order.
In this petition, the petitioner has called in question the correctness of the communication dated 16th October, 2000, a copy of which has been produced as Annexure-D to the writ petition.
Sri Vedamurthy, learned Government Pleader appearing for the respondents submits that in view of the amendment made to Section 5(1-A) of the Karnataka Sales Tax Act (hereinafter referred to as the ''Act''), a wholesale dealer who has CL-1 licence is not required to pay any sales tax under the Act. Under these circumstances, the petitioner furnishing any additional security deposit in terms of the notification dated 31st March, 1998 does not arise for consideration.
In the light of the submission made by Sri Vedamurthy, learned Government Pleader that a person who is holding CL-1 licence is not required to pay any tax under the Act, I am of the view that the petitioner is not required to furnish any security as demanded in notice Annexure-D. Therefore, notice Annexure-D is liable to be quashed. Accordingly, it is quashed. It is needless to state that consequent upon the quashing of Annexure-D, the authorities are required to consider the application filed by the petitioner for registration under the Act, in accordance with law and without insisting upon the petitioner to furnish additional security in terms of communication Annexure-D.
In terms stated above, this petition is allowed and disposed of. Rule is issued and made absolute.
Sri Vedamurthy, learned Government Pleader is given four weeks time to file his memo of appearance.