Commission agents are liable for payment of taxes under the Karnataka Sales Tax Act, 1957, and the provision does not violate constitutional rights or conflict with parliamentary legislation.

( 1 ) 1. On a reference made by one of us (Puttaswamy, J.) these cases have been posted before us for disposal.

( 2 ) AS the petitioners in these cases have challenged one and the same provision, we propose to dispose of them by a common order.

( 3 ) ALL the petitioners, except the petitioner in Writ Petition No. 17117 of 1984 claim that they are engaged in the business of commission agents or 'dallals' before one or the other Agricultural Market Committee constituted and functioning under the Karnataka Agricultural Produce marketing Regulation Act of 1968 ('apmc act') by obtaining licences from the concerned Committee. They claim that their aforesaid business activity only brings the buyer and seller together and they are not dealers under the Karnataka Sales Tax Act of 1957 (Karnataka Act No. 25 of 1957 ('the Act' ).

( 4 ) THE petitioner in Writ Petition No. 17117 of 1984 which is a registered partnership firm of partners, is also a registered dealer under the Act on the file of the assistant Commissioner of Commercial taxes (Assessments) Belgaum ('acct') which acts as a commission agent for resident and non-resident principals dealing principally in Tamal Patra, Cocum, Shikkakai etc. In his proposition Notice No. 5010201-0 dated 23-6-1984 (Annexure-A) the ACCT has called upon this petitioner to show cause for its non-payment of turn over tax levied by Section 68 of the Act for the periods set out therein.

( 5 ) ALL the petitioners have challenged the validity of Section 11 of the Act substituted by the Karnataka Sales Tax (Second amendment) Act, 1983 (Karnataka Act 23 of 1983) ('amending Act') that came into force on 18. 11. 1983 on which day it was first published in the Karnataka Gazette (Extraordinary) (vide Section 1 (2) of the amending Act and Section 5 (3) of the karnataka General Clauses Act of 1899. In addition to this challenge, the petitioner in writ Petition No. 17117 of 1984 has also challenged the proposition notice issued by the ACCF on the basis of the said amendment.

( 6 ) ALL the petitioners have urged that section 11 substituted by the Amending act was beyond the legislative competence of the State Legislative and is, therefore, liable to be struck down. "the petitioners in Writ Petition Nos. 11452 to 11457 of 1984 have urged that the said provision violates Section 64-A of the sale of Goods Act, 1930 and Section 182 of the Contract Act enacted by the Parliament. They have also urged that the same was violative of Article 19 (l) (g) of the constitution. At the hearing, these petitioners have also urged that the provision was violative of Article 14 of the Constitution. " "the petitioner in Writ Petition No. 17117 of 1984 has urged that the tax levied in the impugned provision was a tax on income and was not a tax on purchases or sales and, therefore, a colourable piece of legislation liable to be struck down on that ground. "

( 7 ) THE respondents have resisted these writ petitions.

( 8 ) SRIYUTHS H. Subramhanya Jois, F V. Katageri and B. P. Gandhi, learned cowsel for the petitioners have contended that section 11 of the Act was beyond the legislative competence of the State Legislature and was invalid.

( 9 ) SRI S. Rajendra Babu, learned Government Advocate appearing for the respondents has urged that Section 11 of the Act was within the legislative competence of the State Legislature.

( 10 ) BEFORE examining the contentions touching on the validity of Section 11 of the Act, it is necessary to as certain its true scope and ambit bearing the well settled rules of construction, some of which, if not all have been noticed and re-stated by a Full Bench of this Court in C. ARUNACHALAM v. COMMISSIONER OF income TAX [1984 (2) I. L. R. (Karnataka) 1387 (Para 11)].

( 11 ) SECTION 11 of the Act as it stood before its substitution by the Amending act reads thus:"11. Licensing of Agents.- Every person who for an agreed commission or brokerage buys or sells on behalf of known principals specified in his