R. V. RAVEENDRAN, J.

( 1 ) THE petitioners are carrying on the business of hiring audio visual and multimedia equipments. They claim that they have purchased public address systems (mikes, speakers cassette. /disc players, amplifiers, etc.) video camera and equipment, LCD projectors, lighting and other equipments and have also engaged several technicians, for their said business.

( 2 ) THE procedure adopted by each petitioner for conducting their business is stated to be as follows : (i) A customer contacts the petitioner for providing audio/visual service for his programme or event. After assessing the need and availability of the equipment and suitable operator/technician to operate them on the specified dates, the petitioner accepts the order. The engagement is for short durations ranging from few hours to few days. (ii) The stores department of petitioner release the necessary equipment under a gate pass showing the name of the technician/ operator who will be in-charge of such equipment, the mode of transport and the time, date and venue of the programme/event. (iii) The equipment is transported to the venue of the programme under the supervision of the petitioner's employee. At site the audio/visual equipments are handled, arranged, installed and operated by petitioners' technicians/operators to meet the requirements of the programme/event. At no time the equipment is given to the possession or control of the customer, nor operated by the customer. (iv) After conclusion of the programme/event, the petitioner's technician/operator dismantles the equipment/system and brings them back to the petitioner's stores. (v) The entire risk in regard to the equipment during transit as well as during the programme remains with the petitioner. Petitioner takes out insurance for all its equipments to cover transit and the programme periods. (vi) The billing is done by the petitioner either in advance or after the programme, as per the agreed rates for all the services, without any bifurcation.

( 3 ) PETITIONERS contend they are not "dealers" within the meaning of that expression in the karnataka Sales Tax Act, 1957 ("the Act" for short) nor is their turnover exigible to sales tax under any provision of the Act. But, the first respondent has served on the petitioners, notices dated November 25, 1999 and June 5, 2000 (annexure A in the respective petitions) under section 12 (3) of the Act proposing to subject the charges collected for hiring their audio/ visual equipments to tax, under Section 5-C of the Act. It is alleged in the said notices that as the petitioner's customers had the benefit of the use of equipment for a specified period, the transaction between the petitioner and its customer would amount to "sale" and exigible to tax under Section 5-C, even if the petitioners are responsible for transportation and technical arrangements.

( 4 ) FEELING aggrieved, petitioners have filed these petitions for quashing the said notices issued under Section 12 (3) of the Act and seeking a direction to the first respondent not to proceed further in pursuance of such notices issued to them. They have also sought a declaration that they are not liable to pay tax under Section 5-C of the Act on hiring transactions relating to audio-visual and multimedia equipments. The petitioners contend that possession and control of the equipment always remains with them and what is offered to the customer is a package service which includes assessing the requirements of the customer, transportation of the equipment to and fro to the site, deployment and use of equipment through their own technicians to give the desired audio or visual results/effects for the benefit of the customer.

( 5 ) IN their statement of objections the respondents have not specifically denied the description of the transaction or the procedure adopted by the petitioners in hiring audio visual equipments, but have contended that the transactions relating to audio visual equipment a

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