This Tax Alert summarizes the recent decision by a three judges bench of the Hon’ble Supreme Court (SC) in State of Karnataka Etc v. M/s Pro Lab & Others Etc; 2015-TIOL-08-SC-CT-LB.
SC has held that Entry 25 of Schedule VI of the Karnataka Sales Tax Act, 1957 which makes part of “processing and supplying of photographs, photo prints and photo negatives”, having the “goods” component exigible to sales tax, is constitutionally valid.
While upholding the retrospective amendment, SC placed reliance on various rulings and reiterated that power to legislate included power to legislate prospectively as well as retrospectively.
Efforts of the Karnataka High Court to invalidate the Entry 25 on as many as three occasions have been finally throttled by the Supreme Court in the instant ruling.
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