Chapter XXI MISCELLANEOUS

144. Presumption as to documents in certain cases. - Where any document - (i) is produced by any person under this Act or any other law for the time being in force; or (ii) has been seized from the custody or control of any person under this Act or any other law for the time being in force; or (iii) has been received from any place outside India in the course of any proceedings under this Act or any other law for the time being in force, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall -- (a) unless the contrary is proved by such person, presume — (i) the truth of the contents of such document; (ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which the court may reasonably assume to have been signed by, or to be in the handwriting of, any particular person, is in that person‗s han dwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; (b) admit the document in evidence notwithstanding that it is not duly stamped, if such docum ent is otherwise admissible in evidence.

printouts as documents and as evidence.

146. Common Portal. - The Government may, on the recommendations of the Council, notify the Common Goods and Services Tax Electronic Portal for facilitating registration, payment of tax, furnishing of returns, computation and settlement of integrated tax, electronic way bill and for carrying out such other functions and for such purposes as may be prescribed.

147. Deemed Exports. - The Government may, on the recommendations of the Council, notify certain supplies of goods as ―deemed exports‖, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.

148-A. Track and trace mechanism for certain goods

149. Goods and services tax compliance rating. - (1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record of compliance with the provisions of this Act. (2) The goods and services tax compliance rating score may be determined on the basis of such parameters as may be prescribed. (3) The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed. 129

150. Obligation to furnish information return. - (1) Any person, being — (a) a taxable person; or (b) a local authority or other public body or association; or (c) any authority of the State Government responsible for the collection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for the collection of excise duty or customs duty; or (d) an income tax authority appointed under the provisions of the Income - tax Act, 1961 (Central Act 43 of 1961); or (e) a banking company within the meaning of clause (a) of section 45A of the Reserve Bank of India Act, 1934 (Central Act 2 of 1934); or (f) a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003 (Central Act 36 of 2003), or any other entity entrusted with such functions by the Central Government or the State Government; or (g) the Registrar or Sub-Registrar appointed under section 6 of the Registration Act, 1908 (Central Act 16 of 1908); or (h) a Registrar within the meaning of the Companies Act, 2013 (Central Act 18 of 2013); or (i) the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988 (Central Act 59 of 1988); or (j) the Collector referred to in clause (c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (Central Act 30 of 2013); or (k) the recognised stock exchange referred to in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (Central Act 42 of 1956); or (l) a depository referred to in clause (e) of sub -section (1) of section 2 of the Depositories Act, 1996 (Central Act 22 of 1996); or (m) an officer of the Reserve Bank of India as constituted under section 3 of the Reserve Bank of India Act, 1934 (Central Act 2 of 1934); or (n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013 (Central Act 18 of 2013); or (o) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25; or (p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accou nts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, shall furnish an information return of the same in respect of such periods, within such time, in such form and manner and to such authority or agency as may be prescribed. (2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within 130 such further period which, on an application made in this behalf, the said authority may allow and if the defect is not rectified wit hin the said period of thirty days or, the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such information return shall be treated as not furnished and the provisions of this Act shall apply. (3) Where a person who is required to furnish information return has not furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing of such information return within a period not exceeding ninety days from the date of service of the notice and such person shall furnish the information return.

1[151. Power to call for information. - The Commissioner or an officer authorized by him may, by an order, direct any person to furnish information relating to any matter dealt with in connection with this Act, within such time, in such form, and such manner, has may be specified therein.]1

152. Bar on disclosure of information. - (1) No information 1[XXX]1with respect to any matter given for the purposes of section 150 or section 151 shall, without the previous consent in writing of the concerned person or his authorised representative, be published in such manner so as to enable s uch particulars to be identified as referring to a particular person and no such information shall be used for the purpose of any proceedings under this Act 2[without giving an opportunity of being heard to the person concerned.]2 1[(2)XXX]1. (3) Nothing in this section shall apply to the publication of any information relating to a class of taxable persons or class of transactions, if in the opinion of the Commissioner, it is desirable in the public interest to publish such information.

153. Taking assistance from an expert. - Any officer not below the rank of Assistant Commissioner may, having regard to the nature and complexity of the case and the interest of revenue, take assistance of any expert at any stage of scrutiny, inquiry, investigation or any other proceedings before him.

154. Power to take samples. - The Commissioner or an officer authorised by him may take samples of goods from the possession of any taxable person, where he considers it necessary, and provide a receipt for any samples so taken.

155. Burden of Proof. - Where any person claims that he is eligible for input tax credit under this Act, the burden of proving such claim shall lie on such person.

156. Persons deemed to be public servants. - All persons discharging functions under this Act shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code (Central ct 45 of 1860).

157. Protection of action taken under this Act. - (1) No suit, prosecutio n or other legal proceedings shall lie against the President, State President, Members, officers or other employees of the Appellate Tribunal or any other person authorised by the said Appellate Tribunal for anything which is in good faith done or intended to be done under this Act or the rules made thereunder. (2) No suit, prosecution or other legal proceedings shall lie against any officer appointed or authorised under this Act for anything which is done or intended to be done in good faith under this Act or the rules made thereunder. 131

158. Disclosure of information by a public servant. - (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the c ourse of any proceedings under this Act (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section (3), not be disclosed. (2) Notwithstanding anything contained in the Indian Evidence Act, 1872 (Central Act 1 of 1872), no court shall, save as otherwise provided in sub -section (3), require any officer appointed or authorised under this Act to produce before it or to give evidence before it in respect of particulars referred to in sub-section (1). (3) Nothing contained in this section shall apply to the disclosure of,–– (a) any particulars in respect of any statement, return, accounts, documents, evidence, affidavit or deposition, for the purpose of any prosecution under the Indian Penal Code (Central Act 45 of 1860) or the Prevention of Corruption Act, 1988 (Central Act 49 of 1988), or any other law for the time being in force; or (b) any particulars to the Central Government or the State Government or to any person acting in the implementati on of this Act, for the purposes of carrying out the objects of this Act; or (c) any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demand; or (d) any particulars to a civil court in any suit or proceedings, to which the Government or any authority under this Act is a party, which relates to any matter arising out of any proceedings under this Act or under any other law for the time being in force authorising any s uch authority to exercise any powers thereunder; or (e) any particulars to any officer appointed for the purpose of audit of tax receipts or refunds of the tax imposed by this Act; or (f) any particulars where such particulars are relevant for the purposes of any inquiry into the conduct of any officer appointed or authorised under this Act, to any person or persons appointed as an inquiry officer under any law for the time being in force; or (g) any such particulars to an officer of the Central Government or of any State Government, as may be necessary for the purpose of enabling that Government to levy or realise any tax or duty; or (h) any particulars when such disclosure is occasioned by the lawful exercise by a public servant or any other statutory authority, of his or its powers under any law for the time being in force; or (i) any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under this Act against a practising advocate, a tax practitioner, a practising cost accountant, a practising chartered accountant, a practising company secretary to the authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary, as the case may be; or (j) any particulars to any agency appointed for the purposes of data entry on any automated system or for the purpose of operating, upgrading or maintaining any automated system where such agency is contractually bound not to use or disclose such particulars except for the aforesaid 132 purposes; or (k) any such particulars to an officer of the Government as may be necessary for the purposes of any other law for the time being in force; and (l) any information relating to any class of taxable persons or class of transactions for publication, if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.

159. Publication of information in respect of persons in certain cases. - (1) If the Commissioner, or any other officer authorised by him in this behalf, is of the opinion that it is necessary or expedient in the public interest to publish the name of any person and any other particulars relating to any proceedings or prosecution under thi s Act in respect of such person, it may cause to be published such name and particulars in such manner as it thinks fit. (2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the Appellate Authority under section 107 has expired without an appeal having been presented or the appeal, if presented, has been disposed of. Explanation .––In the case of firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasurers or managers of the company, or the members of the association, as the case may be, may also be published if, in the opinion of the Commissioner, or any other officer authorised by him in this behalf, circumstances of the case justify it.

160. Assessment proceedings, etc. not to be invalid on certain grounds. - (1) No assessment, re -assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, acce pted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of this Act shall be invalid or deemed to be invalid merely by reason of any mistake, defect or omission therein, if such assessment, re -assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of this Act or any existing law. (2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question at or in the earlier proceedings commenced, continued or finalised pursuant to such notice, order or communication.

161. Rectification of errors apparent on the face of record. - Without prejudice to the provisions of section 160, and notwithstanding anything contained in any other provisions of this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document, may rectify any error which is apparent on the face of record in such decision or order or notice or certificate or any other document, either on its own motion or where such error is brought to its notice by any officer appointed under this Act or an officer appointed under the Central Goods and Services Tax Act or by the affected person withi n a period of three months from the date of issue of such decision or order or notice or certificate or any other document, as the case may be: Provided that no such rectification shall be done after a period of six months from the date of issue of such decision or order or notice or certificate or any other document: Provided further that the said period of six months shall not apply in such cases where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission: 133 Provided also that where such rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification.

162. Bar on jurisdiction of civil courts. - Save as provided in sections 117 and 118, no civil court shall have jurisdiction to deal with or decide any question arising from or relating to anything done or purported to be done under this Act.

163. Levy of fee. - Wherever a copy of any order or document is to be provided to any person on an application made by him for that purpose, there shall be paid such fee as may be prescribed.

164. Power of Government to make rules. - (1) The Government may, on the recommendations of the Council, by notification, make rules for carrying out the provisions of this Act. (2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any of the matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be made by rules. (3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force. (4) Any rules made under sub -section (1) or sub -section (2) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.

165. Power to make regulations. - The Government may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act.

166. Laying of rules, regulations and notifications. - Every rule made by the Government, every regulation made by the Government and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before the State Legislature, while it is in session, for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the State Legislature agrees in making any modification in the rule or regulation or in the notification, as the case may be, or the State Legislature agrees that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, ho wever, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be.

167. Delegation of powers. - The Commissioner may, by notification, direct that subject to such conditions, if any, as may be specified in the notification, any power exercisable by any authority or officer under this Act may be exercisable also by another authority or officer as may be specified in such notification.

168. Power to issue instructions or directions. - The Commissioner may, if he

considers it necessary or expedient so to do for the purpose of uniformity in the

implementation of this Act, issue such orders, instructions or directions to the State tax 134

officers as it may d eem fit, and thereupon all such officers and all other persons employed in

the implementation of this Act shall observe and follow such orders, instructions or

directions.

on the recommendations of the Council, by notification, extend time limit specified in, or prescribed or notified under, this Act in respect of actions which cannot be completed or

complie d with due to force majeure.

1. (2) The power to issue notification under sub -section (1) shall include the power to

a case of war, epidemic, flood, drought, fire, cyclone, earthquake or any other calamity caused by nature or otherwise affecting the implementation of any of the provisions of this Act.]1.

169. Service of notice in certain circumstances. - (1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one of the following methods, namely: - by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on b ehalf of the taxable person or to a person regularly employed by him in connection with the business, or to any adult member of family residing with the taxable person; or (a) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or his authorised representative, if any, at his last known place of business or residence; or (b) by sending a communication to his e -mail address provided at the time of registration or as amended from time to time; or (c) by making it available on the common portal; or (d) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or (e) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board of the office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice. (2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which it is tendered or published or a copy th ereof is affixed in the manner provided in sub-section (1). (3) When such decision, order, summons, notice or any communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by such post in transit unless the contrary is proved.

170. Rounding off of tax etc. - The amount of tax, interest, penalty, fine or any other sum payable, and the amount of refund or any other sum due, under the provisions of 135 this Act shall be r ounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee and if such part is less than fifty paise it shall be ignored.

171. Anti-profiteering Measure. - (1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. (2) The Central Government may, on recommendations of the Council, by notification, constitute an Authority, or empower an existing Authority constituted under any law for the time being in force, to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. 1[Provided that, the Government may by notification, on the recommendations of the Council, specify the date from which the said Auth ority shall not accept any request for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied b y him. Explanation 1.- For the purposes of this sub -section, ―request for examination‖ shall mean the written application filed by an applicant requesting for examination as to whether input tax credits availed by any registered person or the reduction in the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him.‖; ―Explanation 2. - For the purposes of this section, the expression ―Authority‖ shall include the ―Appellate Tribunal‖. ]1 (3) The Authority referred to in sub-section (2) shall exercise such powers and discharge such functions as may be prescribed. 1[(3A) Where the Authority referred to in sub-section (2) after holding examination as required under the said sub -section comes to the conclusion that any registered person has profiteered under sub -section (1), such person shall be liable to pay penalty equivalent to ten per cent. of the amount so profiteered: Provided that, no penalty shall be leviable if the profiteered amount is deposited within thirty days of the date of passing of the order by the Authority. Explanation.- For the purposes of this section, the expression ―profiteered‖ shall mean the amount determined on account of not passing the benefit of reduction in rate of tax on supply of goods or services or both or the benefit of input tax credit to the recipient by way of commensurate reduction in the price of the goods or services or both.]1

172. Removal of difficulties. - (1) If any difficulty arises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general or a special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of removing the said difficulty: Provided that no such order shall be made after the expiry of a period of 1[five years]1from the date of commencement of this Act. (2) Every order made under this section shall be laid, as soon as may be, after it is made, before the State Legislature. 136

173. Repeals. (1) Save as otherwise provided in this Act, on and from the date of commencement of this Act,- (i) The Mysore Betting Tax Act, 1932 (Mysore Act IX of 1932), (ii) The Karnataka Entertainments Tax Act, 1958 (Karnataka Act 30 of 1958), (iii) The Karnataka Tax on Luxuries Act, 1979 (Karnataka Act 22 of 1979), (iv) The Karnataka Tax on Entry of Goods Act, 1979, (Karnataka Act 27 of 1979), (v) The Karnataka Tax on Lotteries Act, 2004 (Karnataka Act 4 of 2004) (vi) The Karnataka Special Entry Tax Act, 2002 (Karnataka Act 29 of 2004), (vii) The Karnataka Value Added Tax Act, 2003 (Karnataka Act 32 of 2004), (hereafter referred to as the repealed Acts) are hereby repealed. (2) Every certificate of registration, licence or as the case may be, permission, granted under any of the repealed Acts or such repealed provision, shall stand cancelled with effect from the appointed day and shall be returned to the authority competent to cancel such certificate of registration, licence or as the case may be, permission, with in a period of three months from the appointed day.

174. Saving. (1) The repeal of the Acts specified in section 173 shall not— (a) revive anything not in force or existing at the time of such repeal; or (b) affect the previous operation of the repealed Acts and orders or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the repealed Acts or orders under such repealed Acts: Provided that any tax exemption granted as an incentive against investment through a notification shall not continue as privilege if the said notification is rescinded on or after the appointed day; or (d) affect any tax, surcharge, penalty, fine, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions of the repealed Acts; or (e) affect any investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such investigation, inquiry, verification (including scrutiny and audit), assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continued or enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may be levied or imposed as if these Acts had not been so repealed; or (f) affect any proceedings including that relating to an appeal, revision, review or reference, instituted before, on or after the appointed day under the said repealed Acts and such proceedings s hall be continued under the said repealed Acts as if this Act had not come into force and the said Acts had not been repealed. (2) Not withstanding anything contained in section 173, for the purpose of giving effect to 137 sub-section (1), the State Government may, by notification, in the Official Gazette make such provision as appears to it necessary or expedient, - (a) for making omissions from, additions to and adaptations and modifications of the rules, notifications and orders issued under the repealed Acts; (b) for specifying the authority, officer or person who shall be competent to exercise such functions exercisable under any of the repealed Acts or any rules, notifications or orders issued thereunder as may be mentioned in the said notification. (3) Notwithstandi ng anything contained in section 173, nothing contained in any of the repealed Acts limiting the time within which any action may be taken or any order, assessment or re -assessment may be made shall apply to an assessment or re -assessment made on the assess or any person, - (i) in consequence of, or to give effect to, any finding, direction or order made under any provision of the relevant repealed Acts or any judgement, or order made by the Supreme Court, High Court or any other court whether before or after the commencement of this Act; (ii) to rectify any error on account of the assessment of such assessee or person under this Act, instead of under the relevant enactment, provided such assessment or re -assessment under the repealed Acts is made within the time specified in such repealed Acts. (4) The repeal of the Acts referred to in section 173 shall not be held to prejudice or affect the general application of section 6 of the Karnataka General Clauses Act, 1899 (Karnataka Act III of 1899) with regard to the effect of repeal.