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By a notification dated 31.3.1994, various goods which entered a local area were charged at different rates of entry tax. This notification was struck down by the High Court as violating Article 301 of the Constitution, and hence, the State Government came out with notification dated 23.9.1998 to cure the defects pointed out by the High Court, and was for the period dated 1.4.1994 to 6.1.1998. The aforesaid notification reads as follows:

    SI No.104 No. FD 112 CET 98, Bangalore, dated 23rd September, 1998 In exercise of the powers conferred by sub-section (1) of Section 3 of the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act 27 of 1979), the Government of Karnataka, hereby specify that with effect from the First day of April, 1994 and upto 6th day of January, 1998, tax shall be levied and collected under the said Act on the entry of goods specified in column (2) of the table below into a local area from any place outside the State of consumption or use therein, at the rates specified in the corresponding entries in column ; (3), thereof:- 

    TABLE Sl. No. Commodity Rate of tax 

    3. Packing material namely: 

    (i) Fibre board cases, paper boxes, Folding 2% cartons, paper bags, carrier bags and card board boxes, corrugated board boxes and the like; 

    (ii) Tin plate containers (cans, tins and 2% boxes), tin sheets, aluminium foil, aluminium tubes, collapsible tubes, aluminium or steel drums, barrels and crates and the like: 

    (iii) Plastic, polyvinyl chloride and polyethylene 2% firms, bottles, pots, jars, boxes, crates, cans, carboys, drums, bags and cushion materials and the like;

    (iv) Wooden boxes, crates, casks and containers 2% and the like; 

    (v) Gunny bags, bardan (including batars) hessian 2% cloth and the like; 

    (vi) Glass bottles, jars and carboys and the like; 2% 

    (vii) Laminated packing materials, such as bluminised 2% paper and hessian-based paper and the like; 

    4. Raw materials, component parts and inputs 1% are used in the manufacture of an intermediate of finished product. 

    Explanation I – The words “raw materials, component parts and any other inputs” do not include exempted goods which are specified in the Schedule, horticultural produce, cereals, pulses, oil seeds including copra and cotton seeds, timber or wood of any species, newsprint, silk cocoons, raw, thrown or twisted silk, tobacco (whether raw or cured) and blended yarn, man-made filament yarn, man-made fibre yarn, man-made fibre, woolen yarn and woo