Chapter VII Chapter VII

Miscellaneous

¹ Inserted by Act 15 of 1970 w.e.f. 1.10.1957.

apparent from the record, the assessing authority, appellate authority or revising authority, may, at any time, within five years from the date of an order passed by it, amend such order: Provided that an amendment which has the effect of enhancing an assessment or otherwise increasing the liability of the assessee shall not be made unless the assessing authority, appellate authority or revising authority, as the case may be, has given notice to the assessee of its intention to do so and has allowed the assessee a reasonable opportunity of being heard.

1[Provided further that where an application is made by an assessee for rectification of any mistake in an order, as being apparent from the record and, such application has not been rejected by the assessing authority within sixty days from the date of receipt of the application, the order shall be deemed to have been amended rectifying such mistake.]

¹ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

1957: KAR. ACT 25] Sales Tax

1. (2) Where an order has been considered and decided in any proceedings by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
2. (3) An order passed under sub-section (1), shall be deemed to be an order passed under the same provision of law under which the original order, the mistake in which was rectified, has been passed.] 1[25-B. Levy of tax on Sugarcane.- (1) Notwithstanding anything contained in section 5 there shall be levied and collected a tax on the last purchase of sugarcane in the State at the rate of,—
   • (i) rupees sixty five per tonne, when purchased by a manufacturer of sugar (including khandasari sugar) whose rate of recovery of sugar exceeds 10.5 percent;
   • (ii) rupees fifty per tonne, when purchased by a manufacturer of sugar (including khandasari sugar) whose rate of recovery of sugar does not exceed 10.5 percent.
3. (2) In addition to the tax payable under sub-section (1) there shall be levied and collected each year by way of cess for the purpose of improvement of roads in sugarcane growing areas reserved for any factory, a tax at the rate of rupees ten per tonne on the purchase of sugarcane by manufacturers of sugar (including khandasari sugar).
4. (3) Every person liable to pay tax under sub-section (1) and cess under sub-section (2) shall furnish such return or returns in such manner and within such period as may be prescribed. 1[Provided that the specified class of dealers as may be notified by the Commissioner shall submit the return in the prescribed form, electronically through internet in the manner specified in the said notification.]
5. (4) Every purchaser shall pay in advance every month the tax payable under sub-section (1) and cess payable under sub-section (2) on the quantity of sugarcane purchased by him during the preceding month. 1[Provided that the specified class of dealers as may be notified by the Commissioner shall pay the tax payable under sub-section (1) and cess payable under sub-section(2), by electronic remittance through internet in the manner specified in the said notification.]

¹ Inserted by Act 1 of 1996 w.e.f. 13.10.1995.

¹ Inserted by Act 5 of 2010 w.e.f. 1.4.2010.

¹ Inserted by Act 5 of 2010 w.e.f. 1.4.2010.

Sales Tax [1957: KAR. ACT 25

1. (5) The provisions of this Act relating to assessment, payment, recovery, appeal and revision, and refund and exemption shall mutatis mutandis apply in respect of tax and cess payable under this section.]

1[Every person registered or licensed under this Act and every dealer or other person liable to get himself registered under this Act shall keep and maintain true and correct accounts and such other records as may be prescribed] in Kannada or English or Hindi or Marathi or in such other language as the State Government may by notification specify,

1[relating to his business, showing

¹ Substituted by Act 9 of 1964 w.e.f. 1.4.1964.

such particulars as may be prescribed, and such particulars may be different for different classes of persons or dealers;] and in case the accounts maintained in the ordinary course, do not show the same in an intelligible form, he shall maintain a true and correct account in such form as may be prescribed in this behalf:

¹ Omitted by Act 7 of 1966 w.e.f. 1.4.1966.

1[Proviso x x x]

1. (2) The Commissioner may, subject to such conditions or restrictions as may be prescribed in this behalf, by notice in writing direct any dealer or by notifications direct any class of dealers to maintain accounts and records showing the details regarding their purchases, sales or deliveries of goods in such form and in such manner as may be specified by him. 1[26-A. Audit of account.- Every dealer whose total turnover in a year exceeds fifty lakh rupees shall get his accounts audited by a Chartered Accountant 2[or a Sales Tax Practitioner subject to the prescribed limits] and shall submit to the assessing authority a copy of the audited statement of accounts and certificates in the prescribed manner.]

¹ Inserted by Act 18 of 1994 w.e.f. 1.4.1994.

² Inserted by Act 18 of 1999 w.e.f. 1.9.1999 by notification.

Certain dealers to issue

1. (1) Every dealer whose turnover exceeds 2[fifty thousand rupees] in any year shall, in respect of all goods sold by him, issue a bill or a cash memorandum to the purchaser, signed and dated by him or his servant, manager, or agent showing such particulars as may be prescribed and shall keep the counterfoil or duplicate of such bill or cash memorandum duly signed and dated and preserve it for a period of not less than five years from such date. 1[Provided that, unless the purchaser so requires, it shall not be necessary for a dealer to issue a bill or cash memorandum in respect of a transaction whose total value does not exceed 2[one hundred rupees] in each case but the dealer shall, in respect of all such transactions, prepare at the close of each day, a consolidated bill or cash memorandum and include them in his books of accounts and statements or returns in accordance with the provisions of this Act.] 1957: KAR. ACT 25] Sales Tax 1[(1A) Every dealer who purchases goods from another dealer shall obtain a bill or cash memorandum in respect of a transaction whose total value exceeds 2[one hundred rupees] in each case.]
2. (2) Any person who contravenes the provisions of sub-section (1) 1[or sub- section (1A)] shall, on conviction, be punishable with a fine equal to double the amount of the bill or the cash memorandum in respect of which such contravention has occurred 2[or 3[one thousand rupees] whichever is more.]

¹ Inserted by Act 23 of 1983 w.e.f. 18.11.1983.

² Substituted by Act 8 of 1984 w.e.f. 1.4.1984.

¹ Inserted by Act 13 of 1982 w.e.f. 1.4.1982.

² Substituted by Act 6 of 1995 w.e.f. 1.4.1995.

¹ Inserted by Act 23 of 1983 w.e.f. 18.11.1983.

² Substituted by Act 6 of 1995 w.e.f. 1.4.1995.

¹ Inserted by Act 23 of 1983 w.e.f. 18.11.1983.

² Substituted by Act 7 of 1981 w.e.f. 4.4.1981.

³ Substituted by Act 6 of 1995 w.e.f. 1.4.1995.

(1) Any officer empowered by the State Government

1[or the Commissioner]

in this behalf, may for the purpose of this Act, require any dealer carrying on business in any kind of goods

¹ Inserted by Act 7 of 1997 w.e.f. 1.4.1997.

² Inserted by Act 13 of 1982 w.e.f. 1.4.1982.

2[or a miller, whether he is a dealer or not] to produce before him the accounts and other documents, and to furnish any information relating to the stocks of goods of, or purchases, sales and deliveries of goods by, the dealer and also any other information relating to his business.

1[(2) (i) All accounts and registers maintained by dealers in the ordinary course of their business and documents relating to the stock of goods of, or purchases, sales and deliveries of goods by any dealer,

2[computer hardware and software used for data inputting, processing and storage, of all such information] the goods in their possession and their offices, shops, godowns, vessels, receptacles or vehicles, shall be open to inspection at all reasonable times by

² Inserted by Act 13 of 1982 w.e.f. 1.4.1982.

³ Substituted by Act 3 of 1998 w.e.f. 1.4.1998.

3[the officer empowered under sub-section (1)] . 1. Sub-section (2) and (3) substituted by Act 16 of 1967 w.e.f. 1.1.1968.

1. (ii) For the purpose of inspection referred to in clause (i), any such officer shall have power to enter and search any office, shop, godown, vessel, receptacle, vehicle or any other place of business or any building or place where such officer has reason to believe that the dealer keeps, or is for the time being keeping, any accounts, registers or documents of his business: Provided that no residential accommodation (not being a place of business- cum-residence) shall be entered into and searched by such officer except on the authority of a search warrant issued by a Magistrate having jurisdiction over the area, and all searches under this sub-section shall, so

Sales Tax [1957: KAR. ACT 25 far as may be, be made in accordance with the provisions of

¹ Substituted by Act 18 of 1978 w.e.f. 1.9.1978.

1[the Code of Criminal Procedure, 1973 (Central Act 2 of 1974).]

1[(iii) The power conferred by sub-clause (ii) shall also include,—

1. (a) the power to seal any box or receptacle, godown or building or any part of the godown or building in which accounts or taxable goods are suspected to be kept or stored, where the owner or the person incharge of the business or any other person in occupation either leaves the premises or is not available or fails or refuses to open any box or receptacle, godown or building or any part of the godown or building when called upon to do so.
2. (b) the power to break open the receptacle, godown or building or part of the godown or building where the owner or the person in-charge of the business or the person in occupation leaves the premises or, after an opportunity having been given to him to do so, fails to open the receptacle, godown or building or part of the godown or building. The officer acting under this sub- clause shall prepare a list of the goods and documents found therein.] 1[(2A) No person shall tamper with any seal put under clause (iii) of sub- section (2).]

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

1. (3) If any such officer has reason to suspect that any dealer is attempting to evade the payment of any tax, fee or other amount due from him under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers, records 1[computer hardware and software] or other documents of the dealer as he may consider necessary, and shall give the dealer a receipt for the same. The accounts, registers, records 1[computer hardware and software] and documents, so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceeding under this Act: 1[Provided that accounts, registers, records 2[computer hardware and software] and other documents so seized shall not be retained by such officer for a period exceeding one hundred eighty days from the date of seizure, unless the reasons for retaining the same beyond the said period are recorded by him, in writing and the approval of the next higher authority is obtained and such approval in any case shall not be for more than sixty days at a time.] ] 1[(3-A). (i) If any such officer empowered to enter into such office, shop, godown or any other place of business or any building or place where the dealer or miller keeps his stocks, has reason to believe that such dealer or miller is attempting to evade payment of any tax either on his own or in collusion with owner of the goods, he may direct the dealer or miller or the person-in-charge of such office, shop, godown or any other place of 1957: KAR. ACT 25] Sales Tax business or any building or place where the dealer or miller keeps his stocks, to produce the details regarding the ownership of the goods so stocked and that after verification of the said information if he is of the opinion that further verification is necessary with respect to the accuracy of the particulars furnished in the documents produced, he may verify the particulars himself or, if it is necessary, cause it to be verified by referring the matter to any other officer and if such verification is not likely to be completed within a reasonable time, he may direct in writing the dealer or miller or the person-in-charge of the office, shop, godown or any other place of business or any building or place where the dealer or miller keeps his stocks, not to deliver such goods until permitted to do so by him or such other officer to whom the matter is referred for verification. 1[Provided that the officer shall order for detention of such quantity of goods as in his opinion would be equivalent to three times the amount of tax leviable on such goods.]
   • (ii) The verification under clause (i) shall be completed within a period of one month from the date of direction issued under clause (i). Where such verification is not completed within the aforesaid period, the officer who has issued such direction, or the officer to whom the matter is referred for verification, as the case may be, shall obtain the permission in writing of the next higher authority to extend such period for completion of the verification, however such extension shall not be permitted for a period exceeding fifteen days at a time.
   • (iii) Where such officer or other officer to whom the matter is referred under clause (i), upon such verification is of the opinion that the particulars furnished are incorrect, he may proceed against such goods in the custody of the dealer or miller in accordance with clause (iv).
   • (iv) If the empowered officer or the officer to whom the matter is referred under clause (i), upon such verification is of the opinion that the particulars furnished at the time of verification are incorrect and incomplete for which sufficient cause is not furnished, he may 1[levy a penalty which shall not be less than double the amount of tax leviable in respect of the goods stocked,] (a) 1[xxx] (b) 1[xxx] Provided that before levying penalty under this clause, the officer shall give the dealer or miller or person-in-charge of the office, shop, godown or any other place of business or any building or place where the dealer or miller keeps his stocks, a reasonable opportunity of being heard.

¹ Inserted by Act 7 of 1997 w.e.f. 1.4.1997.

¹ Substituted by Act 27 of 1985 w.e.f. 1.8.1985.

² Inserted by Act 7 of 1997 w.e.f. 1.4.1997.

¹ Inserted by Act 3 of 1998 w.e.f. 1.4.1998.

¹ Inserted by Act 4 of 1999 w.e.f. 1.4.1999.

¹ Substituted by Act 5 of 2002 w.e.f. 1.4.2002.

¹ Omitted by Act 5 of 2002 w.e.f. 1.4.2002.

¹ Omitted by Act 5 of 2002 w.e.f. 1.4.2002.

Sales Tax [1957: KAR. ACT 25

1. (v) Where the penalty levied under clause (iv) is not paid, the dealer or miller or person-in-charge of the office, shop, godown or any other place of business or any building or place where the dealer or miller keeps his stocks, shall jointly and severally be liable to pay such penalty and such amount of penalty shall for the purposes of section 13 be deemed to be an amount due under the Act.
2. (vi) Any person aggrieved by the levy of penalty under clause (iv) may, appeal within thirty days from the date on which the notice of penalty was served on the person 1[to the appellate Joint Commissioner] : 1[(a), (b) x x x] Provided that where the person aggrieved is a dealer registered under the Act, such person may appeal to the appropriate appellate authority of the area in which he is registered.
3. (vii) Such appeal shall be dealt with as if it were an appeal filed under section 20 and all the provisions of the said section shall mutatis mutandis apply to such appeal;] 1[(4) x x x] 1[(5) It shall be open to the State Government to authorise different classes of officers for the purpose of taking action under 2[sub-section (1) or sub- section (2).] ] 1[(6) Where such officer, upon examining the accounts registers, records, or other documents seized under sub-section (3), has reason to believe that in respect of any year, the dealer has,-
4. (i) either failed to declare the whole or part of the turnovers recorded in such accounts, registers, records or other documents in the return or the statements submitted in Form-3; or
5. (ii) failed to account for any turnover in the accounts, registers, records or other documents maintained in the regular course of his business, where the return or the statement in Form-3 is not submitted; or
6. (iii) claimed exemption on the turnovers liable to tax in the return or the statements submitted in Form-3; or
7. (iv) admitted to pay a lower rate of tax than that applicable under this Act on the turnovers declared in the return or the statements submitted in Form-3, he may, notwithstanding anything contained in section 12, 12-A or 12-B 1[or that the year to which such turnover relates to has come to an end] and without prejudice to the imposition of such tax or penalty or both in the assessment or re-assessment, as the case may be, that may be completed 1957: KAR. ACT 25] Sales Tax by the assessing authority for that year under the said sections, provisionally assess such turnovers to tax recording reasons for such assessment: Provided that before taking action under this sub-section, the officer shall obtain permission in writing of the 1[Joint Commissioner] or the Commissioner: Provided further that before taking action under this sub-section, the dealer shall be given a reasonable opportunity of showing cause against such assessment: Provided also that no provisional assessment under this section for any year shall be made if assessment or re-assessment for that year cannot be made under any of the provisions of this Act. 1[Provided also that no provisional assessment under this Section shall be made in the case of any dealer after one hundred and eighty days from the date of seizure of accounts, registers, records and documents under sub- section (3). Provided also that the officer taking action under this sub-section shall not be below the rank of the assessing authority of the dealer]

¹ Inserted by Act 4 of 1999 w.e.f. 1.4.1999.

¹ Omitted by Act 4 of 1999 w.e.f. 1.4.1999.

¹ Omitted by Act 16 of 1967 w.e.f. 1.1.1968.

¹ Substituted by Act 9 of 1964 w.e.f. 1.4.1964.

² Substituted by Act 16 of 1967 w.e.f. 1.1.1968.

¹ Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

¹ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

¹ Substituted by Act 5 of 1993 w.e.f. 9.11.1992.

¹ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

1. (7) Such officer shall 1[proceed to recover the tax assessed and] send a copy of the provisional assessment order to the assessing authority concerned along with such documents as may be necessary, whereupon the assessing authority shall complete the assessment or re-assessment, as the case may be, and impose tax or penalty or both for the year to which such provisional assessment relates on the basis of such materials as are before him.
2. (8) The tax payable under sub-section (6) for any year shall be subject to such adjustments as may be necessary on the completion of final assessment by the assessing authority under section 12 or re-assessment under section 12-A for that year.
3. (9) The provisions of this Act and the rules made thereunder relating to assessment, payment and recovery of tax and appeal, shall mutatis mutandis apply in respect of the tax assessed provisionally under this section.] 1[28-A. Establishment of checkpost or barrier and inspection of goods while in transit.- (1) If the State Government 2[or the Commissioner] consider it necessary that with a view to prevent or check evasion of tax under this Act in any place or places in the State, it is necessary so to do, they may, by notification, direct the establishment of a check post or the erection of a barrier, or both, at such place or places as may be notified. 1[(2) The owner or person in charge of a goods vehicle or boat shall,-
   • (a) carry with him a goods vehicle record, a trip sheet or a log book, as the case may be; and

¹ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

¹ Inserted by Act 28 of 1961 w.e.f. 7.12.1961.

² Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

¹ Substituted by Act 15 of 1996 w.e.f. 5.9.1996.

Sales Tax [1957: KAR. ACT 25

1. (b) carry with him a bill of sale or a delivery note obtained from the prescribed authority or such other documents containing such particulars as may be prescribed, in respect of the goods other than those mentioned in sub-clause (c) carried in the goods vehicle or boat; and
2. (c) carry with him in addition to a bill of sale, a delivery note obtained from such authority containing such particulars as may be prescribed, if the goods carried in the goods vehicle or boat are arecanut, cardamom, cashew, coconut, coffee, copra, 1[cotton,] edible oil including vanaspathi, iron and steel, liquor, oil seeds, pepper, 1[rectified spirit,] rubber, timber or or such other goods as may be notified by the Commissioner; and (d) 1[report at the first check-post or barrier situated on the route ordinarily taken from the place in the State, from which the movement of the goods commences, to its destination and] produce the documents referred to 2[in clauses]
3. (b) and (c) before any officer-in-charge of check post or barrier or any other officer as may be empowered by the State Government in this behalf and obtain seal of such officer affixed thereon, and in respect of a bill of sale, shall give one copy there of and in respect of a delivery note, shall give a copy marked as original, to such officer and carry and retain with him the other copy until termination of movement of the goods; and
4. (e) on entering the State limits, report at the first situate check post or barrier and on leaving the State limits report at the last situate check post or barrier and shall give a declaration containing such particulars as may be prescribed in respect of the goods carried in the goods vehicle or boat, before any officer incharge of the check-post or barrier or any other officer as may be empowered by the State Government in this behalf.] 1[Provided that where the total turnover of the owner or consignor of the goods excluding such goods as may be notified by the Commissioner, for any year as declared in the return for such period is not less than fifty lakh rupees, or where the goods are carried within the limits of a revenue district not as a result of sale, the delivery note shall be the one in the prescribed form permitted to be so issued by him.]

¹ Inserted by Act 18 of 1997 w.e.f. 20.9.1997.

¹ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

² Substituted by Act 26 of 2004 w.e.f. 1.8.2004.

¹ Inserted by Act 5 of 2002 w.e.f. 1.4.2002 and Substituted by Act 26 of 2004 w.e.f. 1.8.2004.

1. (3) At every checkpost or barrier, or at any other place when so required by any officer empowered by the State Government in this behalf, the driver or any other person-in-charge of a goods vehicle or boat shall stop the vehicle or boat, as the case may be, and keep it stationary as long as may be required by the officer-in-charge of the check post or barrier or the officer empowered as aforesaid, to examine the contents in the vehicle or boat and inspect all records relating to the goods carried, which are in the possession of such driver or other person-in-charge, who shall, if so required, give his name and address and the name and address of the owner of the vehicle or boat. 1[Provided that where any goods vehicle is intercepted by the officer empowered at any place other than a checkpost or barrier, such officer may, 1957: KAR. ACT 25] Sales Tax if he deems it necessary, direct the owner or person incharge of the goods vehicle to take it to the nearest checkpost or police station and such owner or person-in-charge of goods vehicle shall comply with such direction.] 1[Explanation.— For purposes of sub-sections (2) and (3), the officer-in- charge of checkpost or barrier shall be an officer not below the rank of an 2[Commercial Tax Officer] and not higher in rank than an 3[Joint Commissioner of Commercial Taxes] , 4[and any other officer not below the rank of a Commercial Tax Inspector as may be empowered by the Commissioner.] ] 1. Explanation and Sub-sections (4) to (7) inserted by Act 27 of 1969 w.e.f. 2.10.1969. 1[(3A) 3[(i)] Where goods are delivered to a carrier or other bailee for transmission, the movement of the goods shall be deemed to commence at the time of such delivery and terminate at the time when delivery is taken from such carrier or bailee. Where before delivery is taken from him a carrier or bailee to whom goods are delivered for transmission, keeps the said goods in any office, shop, godown, vessel, receptacle, vehicle or any other place of business or any building or place, any officer empowered 2[to exercise the powers under sub-section (3)] shall have power to enter into and search such office, shop, godown, vessel, receptacle, vehicle or other place of business or building or place, and to examine the goods and inspect all records relating to such goods. The carrier or bailee or the person-in-charge of the goods and records shall give all facilities for such examination or inspection and shall, if so required, produce the bill of sale or delivery note or other documents referred to in sub-section (2) and give a declaration containing such particulars as may be prescribed regarding the goods and give his name and address and the name and address of the carrier or the bailee and the consignee.] 3. Re-numbered by Act 5 of 2001 w.e.f. 1.4.2001. 1[(ii) The power conferred by clause (i) shall also include,- a) the power to seal any box or receptacle, godown or building or any part of the godown or building in which accounts or taxable goods are suspected to be kept or stored, where the carrier or bailee or person-in-charge of the place of business either leaves the premises or is not available or fails or refuses to open any box or receptacle, godown or building or any part of the godown or building when called upon to do so. b) the power to break open the receptacle, godown or building or part of the godown or building where the carrier or bailee or the person-in-charge of the place of business leaves the premises or, after an opportunity having been given to him to do so, fails to open

¹ Inserted by Act 15 of 1996 w.e.f. 5.9.1996.

² Substituted by Act 5 of 1993 w.e.f. 9.11.1992.

³ Substituted by Act 7 of 1997 w.e.f. 1.4.1997.

⁴ Inserted by Act 23 of 1983 w.e.f. 18.11.1983.

¹ Inserted by Act 18 of 1978 w.e.f. 1.9.1978.

² Substituted by Act 9 of 1986 w.e.f. 1.9.1978.

Sales Tax [1957: KAR. ACT 25 the receptacle, godown or building or part of the godown or building and the officer acting under this sub-clause shall prepare a list of the goods and documents found therein.]

¹ Inserted by Act 5 of 2001 w.e.f. 1.4.2001.

¹ Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

1[(3AA) (i) If any officer empowered to enter into and search any office, shop, godown, vessel, receptacle, vehicle or any other place of business or any building or place where a carrier or bailee keeps the goods delivered to him for transmission, has reason to suspect that such carrier or bailee has colluded with the owner of the goods in evading payment of any tax, he may for reasons to be recorded in writing, seize accounts, registers, records or other documents of the bailee or carrier as he may consider necessary and shall give a receipt for the same. The accounts, registers, records and other documents so seized shall be retained by such officer only for so long as may be necessary for their examination and for any inquiry or proceeding under this Act: Provided that all searches and seizures under sub-section (3-A) or (3-AA) shall, so far as may be, made in accordance with the provisions of the Code of Criminal Procedure, 1973 (Central Act 2 of 1974): Provided further that accounts, registers, records and other documents so seized shall not be retained by such officer for a period exceeding one hundred eighty days from the date of seizure, unless the reasons for retaining the same beyond the said period are recorded by him in writing and the approval of the next higher authority is obtained and such approval in any case shall not be for more than sixty days at a time.

1. (ii) Where such officer, upon examining the accounts registers, records or other documents seized under clause (i) has reason to believe that any dealer has attempted to evade payment of any tax, he may assess such dealer to tax provisionally in accordance with sub-sections (6), (7), (8) and

1. (9) of section 28 wherever they apply.] 1[(3-AB) No person shall tamper with any seal put under clause (ii) of sub- section (3-A).] 1[(3B) Where the officer-in-charge of the checkpost, or barrier, or the officer empowered as aforesaid on interception of the goods vehicle or inspection of any godown, is of the opinion that further verification is necessary with respect to either accuracy of the particulars furnished in the documents accompanying the goods under transport or in transit, or as to the sufficiency and the cause adduced in respect of any contravention of sub- section (2), he may verify the particulars himself or if it is necessary cause it to be verified by referring the matter to any other officer and if such verification is not likely to be completed within a reasonable time, he may direct in writing the carrier or the person-in-charge of the goods vehicle or the godown not to deliver the goods until permitted to do so by him or such other officer to whom the matter is referred for verification and allow the intercepted vehicle, if any, to pass through. 1957: KAR. ACT 25] Sales Tax (3C) The verification under sub-section (3B) shall be completed within a period of fifteen days from the date of the direction issued under that sub- section and where such verification cannot be completed within the aforesaid period the officer who has issued such direction, or, as the case may be, the officer to whom the matter is referred for verification shall obtain the permission in writing of the next higher authority to extend such period for completion of the verification, so however such extension shall not be permitted for a period exceeding fifteen days at a time. (3D) Where such officer or other officer to whom the matter is referred, upon such verification is of the opinion that there is a noncompliance with sub- section (2), punishable under sub-section (4), he may, proceed against such goods in the custody of the carrier, or the person-in-charge of vehicle or the godown in accordance with subsections (4), 1[x x x] and (6) of this section.] 1[(3E) Where the officer-in-charge of the checkpost or any empowered officer has issued a notice for contravention of any of the provisions of this section, further proceedings in pursuance to such notice may, subject to such conditions and in such manner as may be prescribed, be continued by any other officer empowered by the Commissioner in this behalf, from the stage at which it is pending.] 1[(4) The officer-in-charge of a checkpost or a barrier or any other officer not below the rank of a Commercial Tax Inspector and not higher in rank than a Deputy Commissioner of Commercial Taxes in respect of any contravention of, or non-compliance with the provisions of sub-section (2) or (3) or (3A) or (3B), for which sufficient cause is not furnished, 2[levy a penalty, which,-
   • (a) shall not be less than the amount of tax leviable but shall not

¹ Inserted by Act 5 of 2001 w.e.f. 1.4.2001.

¹ Inserted by Act 15 of 1991 w.e.f. 1.4.1991.

¹ Omitted by Act 15 of 1996 w.e.f. 5.9.1996.

¹ Inserted by Act 11 of 1993 w.e.f. 1.4.1993.

exceed one and half of the amount of tax leviable in respect of the goods under transport in contravention of

3[clause (d) or (e)] of sub- section (2), if a dealer registered under the Act accepts that he is the consignor or consignee of the goods,

1. (b) in cases other than those falling under clause (a), shall not be less than double the amount of tax leviable but shall not exceed three times the amount of tax leviable in respect of the goods under transport.] Provided that,—
   • (i) Where the amount of penalty leviable is more than the value of the goods, the amount of penalty leviable shall be restricted to such value; (ii) 1[xxx]

¹ Substituted by Act 15 of 1996 w.e.f. 5.9.1996.

² Substituted by Act 5 of 2001 w.e.f. 1.4.2001 and again substituted by Act 5 of 2002 w.e.f. 1.4.2002.

³ Substituted by Act 26 of 2004 w.e.f. 1.8.2004.

¹ Omitted by Act 5 of 2001 w.e.f. 1.4.2001.

Sales Tax [1957: KAR. ACT 25

1. (iii) in respect of contravention of sub-section (3-B), where the penalty levied is not paid, the carrier or bailee or person-in-charge of the goods vehicle shall jointly and severally be liable to pay such penalty and such amount of penalty shall for the purpose of section 13 be deemed to be an amount due under the Act;
2. (iv) before levying any penalty under this sub-section, the officer shall give the person-in-charge of the goods vehicle or boat or carrier, or bailee, or a dealer registered under the Act, as the case may be, a reasonable opportunity of being heard. Explanation.—Where the destination of the goods to be delivered in the State is not less than one hundred kilometers, from the checkpost or barrier or any other place at which the goods vehicle or boat is intercepted, reasonable opportunity of being heard shall be a period of not less than ten days.] 1[(5) x x x] 1[(6) (a) Where the penalty levied is not paid, the officer levying the penalty shall have power to take possession of so much of the goods as in his opinion would be sufficient to meet the amount of penalty levied and retain the same with him until the penalty levied is paid or for ten days, whichever is earlier: Provided that where it is not practicable to take possession of only so much of the goods as would be sufficient to meet the amount of penalty levied for the reason that the goods vehicle is a tanker carrying goods in liquid or gaseous form or that the goods is a single unit not separable into any part or parts thereof, the officer levying the penalty shall have power to take possession of the goods vehicle or the entire goods, as the case may be, and retain the same with him until the penalty levied is paid or for ten days, whichever is earlier.

¹ Omitted by Act 15 of 1996 w.e.f. 5.9.1996.

¹ Substituted by Act 15 of 1996 w.e.f. 5.9.1996.

1. (b) After the expiry of the period of ten days, if the penalty is not paid the officer shall dispose of the goods in public auction and adjust the sale proceeds towards penalty. If the sale proceeds are more than the penalty, the excess amount shall, after deducting the charges incurred by the State, be refunded in the manner prescribed: 1[Provided that before taking possession or within ten days after taking possession of the goods or the goods vehicle, if the owner or person in- charge of the goods vehicle or the dealer registered under the Act, makes payment of penalty levied, the officer taking such possession shall forthwith return the goods or the goods vehicle to the person making such payment.] : Provided further that in the case of perishable goods, the officer may dispose of the same before the expiry of the period of ten days, if in his opinion such disposal is necessary.] ] 1[(6A) x x x] 1957: KAR. ACT 25] Sales Tax 1[(7) 2[(a) The person aggrieved by the levy of penalty under this section may, appeal within thirty days from the date on which the notice of penalty was served on the person,-
   • (i) to the Appellate Joint Commissioner of Commercial Taxes of the area, if the levy made is by a Deputy Commissioner of Commercial Taxes or by an Assistant Commissioner of Commercial Taxes; and
   • (ii) in other cases to the Appellate Deputy Commissioner of the area concerned. Provided that where the person aggrieved is a dealer registered under the Act, such person may appeal to the appropriate appellate authority of the area in which he is registered. Provided further that where an order staying proceedings of recovery of any penalty levied is made in any order relating to an appeal, the Appellate Authority shall dispose of such appeal within a period of ninety days from the date of such order and, if such appeal is not so disposed of within the said specified period, the order of stay hall stand vacated after the expiry of the said period. Provided also that where an appeal made to the Appellate Joint Commissioner under this clause prior to the date of the Karnataka Taxation Laws (Amendment) Act, 2002 in respect of any matter for which an appeal lies to the Deputy Commissioner after such date is pending on such date it shall stand transferred to the concerned Appellate Deputy Commissioner who shall dispose of the same as if such appeal was made to him.]
2. (b) Such appeal shall be dealt with as if it were an appeal filed under section 20 and all the provisions of the said section shall mutatis mutandis apply to such appeal.] 1[28-AA. Transit of goods by road through the State and issue of transit pass.- 2[(1) Where a vehicle is carrying goods taxable under this Act,-
3. (a) from any place outside the State and bound for any place outside the State and passes through this State; or
4. (b) and which goods are imported into the State from any place outside the country and such goods are being carried to any place outside the State, the driver or any other person-in-charge of such vehicle shall furnish the necessary information and obtain a transit pass in duplicate containing such particulars as may be prescribed from the officer-in-charge of the first checkpost or barrier after his entry into the State or after movement has commenced from the State as the case may be, or from the officer empowered for the purposes of sub-section (3) or section 28-A, upon interception of the goods vehicle after its entry into the State ot after movement has commenced as the case may be] .

¹ Substituted by Act 26 of 2004 w.e.f. 1.8.2004.

¹ Omitted by Act 15 of 1996 w.e.f. 5.9.1996

¹ Substituted by Act 14 of 1987 w.e.f. 1.4.1987.

² Substituted by Act 4 of 1999 w.e.f. 1.4.1999 and again substituted by Act 5 of 2002 w.e.f. 1.4.2002.

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1988.

² Substituted by Act 5 of 2000 w.e.f. 1.4.2000.

Sales Tax [1957: KAR. ACT 25

1. (2) The driver or the person-in-charge of the vehicle shall deliver within the stipulated time a copy of the transit pass obtained under sub-section (1) to the officer-in-charge at the last checkpost or barrier before his exit from the State.
2. (3) If for any reason, the goods carried in a goods vehicle are, after entry into the State 1[or after commencement of movement, as the case may be] , not moved out of the State within the time stipulated in the transit pass, the owner of the goods vehicle shall furnish to the officer empowered in this behalf the reasons for such delay and other particulars, if any, thereof and such officer shall after due enquiry extend the time of exist by suitably amending the transit pass: Provided that where the goods carried by a vehicle are, after their entry into the State 1[or after commencement of movement, as the case may be] , transported outside the State by any other vehicle or conveyance, the onus of proving that the goods have actually moved out of the State shall be on the owner of the vehicle who originally brought the goods into the State.
3. (4) If the driver or any other person-in-charge of the vehicle does not comply with sub-section (2), it shall be presumed that the goods carried thereby have been sold within the State by the owner of the vehicle and shall, notwithstanding anything contained in sub-section (5) of section 5, be assessed to tax by the officer empowered in this behalf in the prescribed manner.
4. (5) If the owner of the vehicle 1[having obtained the transit pass as provided under sub-section (1)] fails to deliver the same as provided under sub- section (2), he shall be liable to pay by way of penalty a sum not exceeding double the amount of tax leviable on the goods transported.
5. (6) The amount of tax and the penalty levied under this section shall be recovered in the prescribed manner. 1[(7) Where the owner of the vehicle who is assessed to tax under sub- section (4), is carrying after such assessment, any goods taxable under this Act in a goods vehicle from any place outside the State 2[or movement from within the State, as the case may be] and bound for any other place outside the State and is passing through the State, the prescribed authority may demand from such owner an amount equivalent to two times the tax leviable on such goods under this Act as security.
6. (8) The prescribed authority after being satisfied that the goods carried in the goods vehicle in respect of which the security amount under sub-section
7. (7) was collected, has passed through the State, shall refund such security amount to the owner. 1957: KAR. ACT 25] Sales Tax
8. (9) The prescribed authority may by an order adjust the whole or any part of security amount towards any amount of tax or penalty payable under this section by such owner.] Explanation.— 1[In case where a vehicle owned by a person is hired for transportation of goods by some other person including a transporting or any other similar agency, both the persons shall for the purposes of this Section, be deemed to be the owner of the vehicle, and shall be jointly and severally liable to pay any amount of tax or penalty payable.] 1. Subsituted by Act 26 of 2004 w.e.f. 1.8..2004.

¹ Inserted by Act 5 of 2000 w.e.f. 1.4.2000.

¹ Inserted by Act 5 of 2000 w.e.f. 1.4.2000.

¹ Substituted by Act 4 of 1992 w.e.f. 1.4.1992.

¹ Inserted by Act 18 of 1994 w.e.f. 1.4.1994.

² Inserted by Act 5 of 2000 w.e.f. 1.4.2000.

¹ Inserted by Act 7 of 1997 w.e.f. 1.4.1997.

to evade tax.- (1) Where in respect of goods liable to tax under this Act, carried in a goods vehicle or boat or held in stock by any dealer or on his behalf by any other person, or held in custody of any transporter, the assessing authority or any officer empowered under sections 28 or 28-A, has reason to believe that the value shown in the document accompanying the goods in transit or the purchase invoice, is lower than the prevailing market price or fair market value or MRP by a difference of thirty percent or more, such authority or officers, for reasons to be recorded in writing, may purchase such goods.

1. (2) The power under sub-section (1) shall not be exercisable unless the person or dealer being dispossessed of such goods, is afforded reasonable opportunity of being heard.
2. (3) The price payable for purchase of such goods shall be the total price as mentioned in the Invoice, Challan, Delivery Note, Stock Transfer Memo, or any other related document plus the cost of transportation of the goods incurred upto the time of purchase, if any.
3. (4) In determining whether or not the price shown in the Invoice, Challan, Delivery Note, Stock Transfers Memo, or any other related document involves undervaluation, in the case of owner of the goods other than an owner carrying on business in packaged goods, the authority exercising the power under sub-section (1) shall apply the prevailing market price or fair market value and in the case of an owner carrying on business in packaged goods, shall apply the Maximum Retail Price. 1[(5) Any person objecting to an order affecting him under this section by,-
   • (i) any officer below the rank of Joint Commissioner may appeal to the Joint Commissioner;
   • (ii) a Joint Commissioner of Commercial Taxes, may appeal to the Appellate Tribunal.]
4. (6) Such appeal shall be dealt with as if it were an appeal filed under section 20 or section 22, as the case may be, and all the provisions of that section shall mutatis mutandis apply to such appeal.

¹ Substituted by Act 26 of 2004 w.e.f. 1.4.1999.

Sales Tax [1957: KAR. ACT 25

1. (7) The authority or officer purchasing goods in exercise of the powers of sub-section (1) subject to provisions of sub-section (6), shall dispose of the goods in public auction within thirty days from the date of such purchase and for value not less than the price paid to the owner of the goods. The sale proceeds so realised should forthwith be paid into the Government Treasury. Explanation.—For the purpose of this section,—
   • (i) `Prevailing market price' shall mean the published wholesale price in force in the market at about the time proceedings are taken to purchase such goods.
   • (ii) `Fair market value' shall mean the price at which the goods are generally bought or sold in the market by dealers in such goods at about the time proceedings are taken to purchase such goods.
   • (iii) `MRP' or `Maximum Retail Price' shall mean the price marked on the package in which the goods are contained.
   • (iv) `Published' shall mean published in any newspaper, journal or periodical or notified by a market committee or any such authority.] 1[28-B. Transporter, etc., to furnish information.- (1) Every person or a clearing or forwarding house or agency, transporting agency, shipping agency, shipping out agency or steamer agency or air-cargo agency or courier agency engaged in the business of transporting taxable goods in the State shall furnish to any officer empowered under sub- section (3) of Section 28-A, the particulars of all taxable goods, cleared, forwarded,

transported or shipped by it or him for any period, in the area of jurisdiction of such officer.

1. (2) The empowered officer shall have the power to call for and examine the books of accounts or other documents in the possession of such person or agency with a view to verify the correctness of any information furnished.] Again substituted by Act 5 of 2002 w.e.f. 1.4.2002. 1[28-C. xxxx]

¹ Substituted by Act 18 of 1994 w.e.f. 1.4.1994 and again substituted by Act 5 of 2001 w.e.f. 1.4.2001.

¹ Omitted by Act 5 of 2001 w.e.f. 1.4.2001.

¹ Substituted by Act 3 of 1998 w.e.f. 1.4.1998.

1. (a) fails to submit a return as required by the provisions of this Act, or the rules made thereunder; or
2. (b) fails to submit a statement as required by sub-section (1) of section 12-B; or
3. (c) fails to pay within the time allowed any tax assessed on him or any penalty levied on him under this Act; or
4. (d) dishonestly objects to or fails to comply with the terms of a notice issued to him under sub-section (1) of section 14; or
5. (e) fails to keep true and complete accounts; or 1957: KAR. ACT 25] Sales Tax
6. (f) being a dealer or a miller, whether he is a dealer or not, fails to comply with a notice issued under sub-section (1) of section 28, shall on conviction 1[(i) in case of contravention referred to in clause
7. (c) to a simple imprisonment for a period of not less than six months but which may extend to one year, where the amount of tax assessed or penalty levied is not less than ten lakh rupees.
   • (ii) in case of contravention referred to in clause (c) and where the amount of tax assessed or penalty levied is less than ten lakh rupees, to a simple imprisonment for a period of not less than six months but which may extend to one year or with fine of not less than rupees five thousand but which may extend to rupees ten thousand and or both, and
   • (iii) in other cases to fine which shall not be less than five hundred rupees but which may extend to five thousand rupees.]

¹ Inserted by Act 5 of 2001 w.e.f. 1.4.2001 and substituted by Act 5 of 2002 w.e.f. 1.4.2002.

1. (2) Any person who,—
   • (a) being a person obliged to register himself under section 10 does not get himself registered; or 1[(aa) is required to furnish information under section 28-B fails to furnish such information.]
   • (b) carries on business as a dealer without furnishing the security demanded under sub-section (4) of section 10-A; or
   • (c) wilfully submits an untrue return, or not being already an assessee under this Act, fails to submit a return as required by the provisions of this Act or the rules made thereunder; or
   • (d) wilfully submits an untrue statement under sub-section (1) of section 12- B; or
   • (e) fraudulently evades the payment of any tax or other amount payable by him under this Act; or
   • (f) collects any amount by way of tax or purporting to be by way of tax in contravention of sub-section (1) or sub-section (2) of section 18; or
   • (g) collects any amount by way of turnover tax or purporting to be by way of turnover tax in contravention of sub-section (3) of section 18; or
   • (h) fails to deduct the tax as required under section 19-A or after so deducting fails to deposit such tax as required under sub-section (2) of that section, or having deducted, fails to issue the certificate referred to in sub- section (3) of section 19-A; or
     • (i) fails to deduct the tax as required under section 19-AA or after so deducting fails to deposit such tax as required under sub-section (2) of that section, or having deducted, fails to issue the certificate referred to in sub- section (3) of section 19-AA; or

¹ Inserted by Act 5 of 2001 w.e.f. 1.4.2001 and Substituted by Act 5 of 2002 w.e.f. 1.4.2002.

Sales Tax [1957: KAR. ACT 25

1. (j) prevents or obstructs inspection, entry, search or seizure by an officer empowered under this Act: or
2. (k) tampers with any seal put under clause (iii) of sub-section (2) of section 28, 1[clause (ii) of sub-section (3-A) of section 28-A] ; or
3. (l) prevents or obstructs inspection of any vehicle or boat or goods transported otherwise or seizure of goods by an officer-in-charge of a checkpost or barrier or any officer empowered under this Act; or
4. (m) wilfully acts in contravention of any of the provisions of this Act or the rules made thereunder shall, on conviction, in addition to the recovery of any tax or other amount that may be due from him, be punishable with simple imprisonment which may extend to twelve months or with a fine which shall not be less than five thousand rupees but which may extend to twenty-five thousand rupees or with both and when the offence is a continuing one, with a daily fine not exceeding two hundred rupees during the period of continuance of the offence.]

¹ Inserted by Act 5 of 2001 w.e.f. 1.4.2001.

(1) No Court shall take cognizance of any offence punishable under 2[clause (i) of sub-section (1) or] sub-section (2) of section 29 except with the previous sanction of the 1[Joint Commissioner] and no Court inferior to that of a Magistrate of the First Class shall try any such offence. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1[1973 (Central Act 2 of 1974)] , all offences punishable under sub-section (2) of section 29 shall be cognizable and bailable. 1[(3) No Court shall permit withdrawal of any prosecution proceeding initiated under Section 29 except with the previous sanction of the Commissioner.] 1. Substituted by Act 20 of 1998 w.e.f. 28.5.1998. 2. Inserted by Act 5 of 2002 w.e.f. 1.4.2002. 1. Substituted by Act 15 of 1991 w.e.f. 1.4.1991. 1. Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

2[clause (i) of sub-section (1) or] sub-section

1. (2) of section 29 except with the previous sanction of the 1[Joint Commissioner] and no Court inferior to that of a Magistrate of the First Class shall try any such offence.
2. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1[1973 (Central Act 2 of 1974)] , all offences punishable under sub-section
3. (2) of section 29 shall be cognizable and bailable. 1[(3) No Court shall permit withdrawal of any prosecution proceeding initiated under Section 29 except with the previous sanction of the Commissioner.]

¹ Substituted by Act 20 of 1998 w.e.f. 28.5.1998.

² Inserted by Act 5 of 2002 w.e.f. 1.4.2002.

¹ Substituted by Act 15 of 1991 w.e.f. 1.4.1991.

¹ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

(1) A Court taking cognizance of an offence under sub-section (1) of section 29 shall state upon the summons to be served on the accused person that he may, by a specified date prior to the hearing of the charge plead guilty to the charge by registered letter and remit to the Court

2[such sum which shall not be less than

3[five hundred rupees but which may extend to five thousand rupees] ]

¹ Inserted by Act 31 of 1969 w.e.f. 20.11.1969.

² Substituted by Act 7 of 1981 w.e.f. 4.4.1981.

³ Substituted by Act 18 of 1997 w.e.f. 20.9.1997.

as the Court may specify.

1. (2) Where an accused person pleads guilty and remits the sum specified under sub-section (1), the Court may proceed to hear and dispose of the 1957: KAR. ACT 25] Sales Tax case in the absence of the accused, whether or not the prosecutor is also absent in like manner as if both parties had appeared and the accused had pleaded guilty.]

The prescribed authority may accept from any person who has committed or is reasonably suspected of having committed an offence punishable under this Act, by way of composition of such offence,— 1[(a) where the offence committed is under clause 2[(c)] of sub-section (1) of section 29 or clause 2[(e)] of sub-section (2) of section 29, in addition to the tax or amount not paid or evaded to be paid, a sum of money not exceeding 3[two thousand rupees or double the amount of the tax or amount so remaining unpaid or evaded to be paid whichever is greater, for the first offence and if it is not the first offence during the financial year, a sum of money not exceeding] 1. Substituted by Act 27 of 1985 w.e.f. 1.8.1985. 2. Substituted by Act 20 of 1998 w.e.f. 28.5.1998. 3. Inserted by Act 26 of 2004 w.e.f. 1.8.2004. 2[five thousand] rupees or double the amount of the tax or amount so remaining unpaid or evaded to be paid whichever is greater, and] 1[(aa) where the offence committed is under sub-section (2) of section 27, in addition to the tax payable on the transaction in respect of which a bill or cash memorandum is not issued or obtained, a sum of money not exceeding 2[five thousand] rupees and where the offence committed under the said sub-section is not the first offence, a sum of money not exceeding 1. Inserted by Act 6 of 1995 w.e.f. 1.4.1995. 2. Substituted by Act 20 of 1998 w.e.f. 28.5.1998. 2[ten thousand] rupees; and] (b) in other cases, a sum of money not exceeding 3[five thousand rupees for the first offence and if it is not the first offence during the financial year, a sum of money not exceeding] 1[ 2[ten thousand] rupees] . 1. Substituted by Act 7 of 1997 w.e.f. 1.4.1997. 2. Substituted by Act 20 of 1998 w.e.f. 28.5.1998. 3. Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

1[(a) where the offence committed is under clause

2[(c)] of sub-section (1) of section 29 or clause

2[(e)] of sub-section (2) of section 29, in addition to the tax or amount not paid or evaded to be paid, a sum of money not exceeding

3[two thousand rupees or double the amount of the tax or amount so remaining unpaid or evaded to be paid whichever is greater, for the first offence and if it is not the first offence during the financial year, a sum of money not exceeding]

¹ Substituted by Act 27 of 1985 w.e.f. 1.8.1985.

² Substituted by Act 20 of 1998 w.e.f. 28.5.1998.

³ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

2[five thousand] rupees or double the amount of the tax or amount so remaining unpaid or evaded to be paid whichever is greater, and]

1[(aa) where the offence committed is under sub-section (2) of section 27, in addition to the tax payable on the transaction in respect of which a bill or cash memorandum is not issued or obtained, a sum of money not exceeding

2[five thousand] rupees and where the offence committed under the said sub-section is not the first offence, a sum of money not exceeding

¹ Inserted by Act 6 of 1995 w.e.f. 1.4.1995.

² Substituted by Act 20 of 1998 w.e.f. 28.5.1998.

2[ten thousand] rupees; and]

1. (b) in other cases, a sum of money not exceeding 3[five thousand rupees for the first offence and if it is not the first offence during the financial year, a sum of money not exceeding] 1[ 2[ten thousand] rupees] .

¹ Substituted by Act 7 of 1997 w.e.f. 1.4.1997.

² Substituted by Act 20 of 1998 w.e.f. 28.5.1998.

³ Inserted by Act 26 of 2004 w.e.f. 1.8.2004.

¹ Inserted by Act 9 of 1964 w.e.f. 1.4.1964.

(1) If the person committing an offence under this Act is a company, the company as well as every person- in-charge of, and responsible to, the company for the conduct of its business at the time of the commission of the offence shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

Sales Tax [1957: KAR. ACT 25

1. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or that the commission of the offence is attributable to any neglect on the part of any director, manager, managing agent or any other officer of the company,

such director, manager, managing agent or such other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purposes of this section,—

1. (a) "company" means any body corporate and includes a firm or other association of individuals; and
2. (b) "director" in relation to a firm means a partner in the firm.]

The validity of the assessment of any tax or of the levy of any fee or other amount, made under this Act, or the liability of any person to pay any tax, fee or other amount so assessed or levied shall not be questioned in any

Bar of certain proceedings.- (1) No suit, prosecution or other proceeding shall lie against any officer or servant of the State Government, for any act done or purporting to be done under this Act without the previous sanction of the State Government.

1. (2) No officer or servant of the State Government shall be liable in respect of any such act in any civil or criminal proceeding if the act was done in good faith in the course of the execution of duties or the discharge of the functions imposed by or under the Act.

No suit shall be instituted against the State Government and no suit, prosecution or other proceeding shall be instituted against any officer or servant of the State

Courts not to set aside or modify assessments except as provided in this Act.- No suit or other proceeding shall except as expressly provided in this Act, be instituted in any Court to set aside or modify any assessment made under this Act.

Any person who is entitled to appear before any authority other than the High Court in connection with any proceeding under this Act, may be represented before such authority— (a) by his relative or a person regularly employed by him if such relative or person is duly authorised by him in writing in this behalf; (b) by a legal practitioner; or 1957: KAR. ACT 25] Sales Tax 1[(c) subject to such conditions as may be prescribed, by an Accountant or by a person enrolled in the prescribed manner as a Sales Tax Practitioner by the Commissioner, and duly authorised by the person whom he represents.] 1[36-A. Power to summon persons to give evidence.- The officers empowered by rules made in this behalf shall have all the powers conferred on a Court by the Code of Civil Procedure, 1908 (Central Act V of 1908), for the purpose of securing attendance of persons or the production of documents in any enquiry under this Act.] 1. Substituted by Act 3 of 1966 w.e.f. 1.3.1966. 1. Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

1. (a) by his relative or a person regularly employed by him if such relative or person is duly authorised by him in writing in this behalf;
2. (b) by a legal practitioner; or 1957: KAR. ACT 25] Sales Tax 1[(c) subject to such conditions as may be prescribed, by an Accountant or by a person enrolled in the prescribed manner as a Sales Tax Practitioner by the Commissioner, and duly authorised by the person whom he represents.] 1[36-A. Power to summon persons to give evidence.- The officers empowered by rules made in this behalf shall have all the powers conferred on a Court by the Code of Civil Procedure, 1908 (Central Act V of 1908), for the purpose of securing attendance of persons or the production of documents in any enquiry under this Act.]

¹ Substituted by Act 3 of 1966 w.e.f. 1.3.1966.

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

The Commissioner may furnish or cause to be furnished to,—

¹ Substituted by Act 16 of 1967 w.e.f. 1.1.1968.

1. (i) any officer, authority or body performing any functions under any law relating to the imposition of any tax, duty, cess or fee; or
2. (ii) such officer, authority or body performing any functions under any other law as the State Government, if in its opinion it is necessary so to do in the public interest, specify by notification in this behalf; any such information relating to any assessee in respect of any assessment made under this Act as may, in the opinion of the Commissioner be necessary for the purpose of enabling the officer, authority or body to perform his or its functions under that law.

1. (b) Where a person makes an application to the Commissioner in the prescribed form for any information relating to any assessee in respect of any assessment made under this Act, the Commissioner may, if he is satisfied that it is in the public interest so to do, furnish or cause to be furnished the information asked for in respect of that assessment only and his decision in this behalf shall be final and shall not be called in question in any Court of law.

1. (2) Notwithstanding anything contained in sub-section (1) or, any other law for the time being in force, the State Government may, having regard to the practices and usages customary or any other relevant factors, by order notified in the Official Gazette, direct that no information or document shall be furnished or produced by a public servant in respect of such matters relating to such classes of assessees or except to such authorities as may be specified in the order.] 1[(3) If the State Government is of the opinion that it is necessary or expedient in the public interest to publish names of any assessees 2[along with his photograph] or any other particulars relating to any proceeding under this Act in respect of such assessees, it may cause to be published

2[along with their photograph]

¹ Inserted by Act 17 of 1976 w.e.f. 1.4.1976.

² Inserted by Act 5 of 2000 w.e.f. 1.4.2000.

and particulars in such manner as it thinks fit.

1. (4) No publication under this section shall be made relating to any penalty imposed or any conviction for any offence connected with any proceedings under this Act, until the time for presenting an appeal to the Appellate Authority has expired without any appeal having been presented or the appeal, if presented, has been disposed of.]

(1) The State Government may, subject to the condition of previous publication, make rules, by notification, to carry out the purposes of this Act. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for.— (a) all matters expressly required or allowed by this Act to be prescribed; 1[(a-1) estimation of turnovers for purposes of registration on the basis of inventory of goods found at the time of inspection or during survey;] (b) the assessment to tax under this Act of business which are discontinued or the ownership of which has changed; 1[(b1) the procedure for assessment of Central and State Government Departments, 2[Statutory Bodies and Local Authorities] ;] (c) the assessment to tax under this Act of business owned by minors and other incapacitated persons or by persons residing outside the 1[State of Karnataka] ; 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973. (d) the assessment of a business owned by any person whose estate or any portion of whose estate is under the control of 1[the Court of Wards, the Administrator-General, the Official Trustee or] any receiver or manager (including any person whatever his designation who in fact manages property on behalf of another) appointed by or under any order of a Court; 1[(d-1) the administration of the checkposts set up and the barriers erected under this Act and the regulation of work therein; (d-2) the disposal of goods confiscated under this Act and the proceeds thereof;] (e) the assessment to tax under this Act of any turnover which has escaped assessment; 1[x x x] 1957: KAR. ACT 25] Sales Tax 1[(f) x x x] (g) compelling the submission of returns and the production of documents and enforcing the attendance of persons and examining them on oath or affirmation; 1[(g-1) specifying the classes of dealers who need not furnish returns under section 12;] (h) securing that returns furnished or accounts or documents produced or evidence of any kind given under this Act before any assessing authority or an appeal or revision from any decision of such authority are kept confidential; 1[(h-1) the procedure to be followed and the powers exercisable in proceedings for recovery under clause (aa) of sub-section (3) of section 13;] (i) the duties and powers of officers appointed for the purpose of enforcing the provisions of this Act; (j) the term of office and the conditions of service of the members of the Appellate Tribunal; 1[(j-1) the fees payable for the grant of duplicate certificates of registration or licences or copies of such certificates and licences or of any other document;] 1[(j-2) the maintenance of purchase bills or accounts of purchases and sales by dealers and the time for which they should be preserved; (j-3) the issue of delivery notes or way bills in respect of goods delivered or transferred to retail dealers in pursuance of sales effected to them, the form and manner of their issue and the time for which they should be preserved; (j-4) the extent of liability of commission agent, broker, del credere agent, auctioneer or any other mercantile agent, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal;] 1[(j-5) the qualifications and disqualifications of Sales Tax Practitioners, the procedure for their enrolment, the fees payable for enrolment and the fees payable for annual renewal of such enrolment;] (k) generally regulating the procedure to be followed and the forms to be adopted in proceedings under this Act; (l) any other matter for which there is no provision or no sufficient provision in this Act and for which provision is, in the opinion of the State Government, necessary for giving effect to the purposes of this Act. 1. Inserted by Act 4 of 1999 w.e.f. 1.4.1999. 1. Inserted by Act 23 of 1983 w.e.f. 1.4.1976. 2. Inserted by Act 4 of 1992 w.e.f. 1.4.1992. 1. Inserted by Act 9 of 1964 w.e.f. 1.4.1964. 1. Inserted by Act 9 of 1964 w.e.f. 1.4.1964. 1. Omitted by Act 31 of 1958 w.e.f. 1.1.1959. 1. Omitted by Act 15 of 1970 w.e.f. 1.10.1957. 1. Inserted by Act 32 of 1958 w.e.f. 1.1.1959. 1. Inserted by Act 5 of 1972 w.e.f. 14.8.1972. 1. Inserted by Act 31 of 1958 w.e.f. 1.1.1959. 1. Inserted by Act 9 of 1964 w.e.f. 1.4.1964. 1. Inserted by Act 3 of 1966 w.e.f. 1.3.1966. Sales Tax [1957: KAR. ACT 25 (3) In making a rule under sub-section (1) or sub-section (2), the Government may provide that a person guilty of a breach thereof shall, on conviction by a Magistrate of the first class, be punishable with fine which may extend to 1[five thousand rupees] and where the breach is a continuing one, with further fine which may extend to 1[one hundred rupees] for every day after the first during which the breach continues. 2[(4) Any rule under this Act may be made to have effect retrospectively and when any such rule is made, a statement specifying the reasons for making such a rule shall be laid before both Houses of the State Legislature along with the rule under section 39. All rules made under this Act, shall, subject to any modification made under section 39, have effect as if enacted in this Act.] 1. Substituted by Act 7 of 1997 w.e.f. 1.4.1997. 1. Inserted by Act 9 of 1964 w.e.f. 1.4.1964.

1. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for.—
   • (a) all matters expressly required or allowed by this Act to be prescribed; 1[(a-1) estimation of turnovers for purposes of registration on the basis of inventory of goods found at the time of inspection or during survey;]
   • (b) the assessment to tax under this Act of business which are discontinued or the ownership of which has changed; 1[(b1) the procedure for assessment of Central and State Government Departments, 2[Statutory Bodies and Local Authorities] ;]
   • (c) the assessment to tax under this Act of business owned by minors and other incapacitated persons or by persons residing outside the 1[State of Karnataka] ; 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973.
   • (d) the assessment of a business owned by any person whose estate or any portion of whose estate is under the control of 1[the Court of Wards, the Administrator-General, the Official Trustee or] any receiver or manager (including any person whatever his designation who in fact manages property on behalf of another) appointed by or under any order of a Court; 1[(d-1) the administration of the checkposts set up and the barriers erected under this Act and the regulation of work therein; (d-2) the disposal of goods confiscated under this Act and the proceeds thereof;]
   • (e) the assessment to tax under this Act of any turnover which has escaped assessment; 1[x x x] 1957: KAR. ACT 25] Sales Tax 1[(f) x x x]
   • (g) compelling the submission of returns and the production of documents and enforcing the attendance of persons and examining them on oath or affirmation; 1[(g-1) specifying the classes of dealers who need not furnish returns under section 12;]
   • (h) securing that returns furnished or accounts or documents produced or evidence of any kind given under this Act before any assessing authority or an appeal or revision from any decision of such authority are kept confidential; 1[(h-1) the procedure to be followed and the powers exercisable in proceedings for recovery under clause (aa) of sub-section (3) of section 13;]
     • (i) the duties and powers of officers appointed for the purpose of enforcing the provisions of this Act;
   • (j) the term of office and the conditions of service of the members of the Appellate Tribunal; 1[(j-1) the fees payable for the grant of duplicate certificates of registration or licences or copies of such certificates and licences or of any other document;] 1[(j-2) the maintenance of purchase bills or accounts of purchases and sales by dealers and the time for which they should be preserved; (j-3) the issue of delivery notes or way bills in respect of goods delivered or transferred to retail dealers in pursuance of sales effected to them, the form and manner of their issue and the time for which they should be preserved; (j-4) the extent of liability of commission agent, broker, del credere agent, auctioneer or any other mercantile agent, who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal;] 1[(j-5) the qualifications and disqualifications of Sales Tax Practitioners, the procedure for their enrolment, the fees payable for enrolment and the fees payable for annual renewal of such enrolment;]
   • (k) generally regulating the procedure to be followed and the forms to be adopted in proceedings under this Act;
   • (l) any other matter for which there is no provision or no sufficient provision in this Act and for which provision is, in the opinion of the State Government, necessary for giving effect to the purposes of this Act.

¹ Inserted by Act 4 of 1999 w.e.f. 1.4.1999.

¹ Inserted by Act 23 of 1983 w.e.f. 1.4.1976.

² Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

¹ Inserted by Act 9 of 1964 w.e.f. 1.4.1964.

¹ Inserted by Act 9 of 1964 w.e.f. 1.4.1964.

¹ Omitted by Act 31 of 1958 w.e.f. 1.1.1959.

¹ Omitted by Act 15 of 1970 w.e.f. 1.10.1957.

¹ Inserted by Act 32 of 1958 w.e.f. 1.1.1959.

¹ Inserted by Act 5 of 1972 w.e.f. 14.8.1972.

¹ Inserted by Act 31 of 1958 w.e.f. 1.1.1959.

¹ Inserted by Act 9 of 1964 w.e.f. 1.4.1964.

¹ Inserted by Act 3 of 1966 w.e.f. 1.3.1966.

Sales Tax [1957: KAR. ACT 25

1. (3) In making a rule under sub-section (1) or sub-section (2), the Government may provide that a person guilty of a breach thereof shall, on conviction by a Magistrate of the first class, be punishable with fine which may extend to 1[five thousand rupees] and where the breach is a continuing one, with further fine which may extend to 1[one hundred rupees] for every day after the first during which the breach continues. 2[(4) Any rule under this Act may be made to have effect retrospectively and when any such rule is made, a statement specifying the reasons for making such a rule shall be laid before both Houses of the State Legislature along with the rule under section 39. All rules made under this Act, shall, subject to any modification made under section 39, have effect as if enacted in this Act.]

¹ Substituted by Act 7 of 1997 w.e.f. 1.4.1997.

¹ Inserted by Act 9 of 1964 w.e.f. 1.4.1964.

¹ Substituted by Act 16 of 1967 w.e.f. 1.1.1968.

Legislature.- Every rule made under this Act and every notification issued under section 8A shall be laid as soon as may be after it is published before each House of 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 in which it is so laid or the sessions immediately following, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.]

(1) The Madras General Sales Tax Act, 1939 (Madras Act IX of 1939), the Madras Tobacco (Taxation on Sales and Registration) Act, 1953 (Madras Act IV of 1953), the Madras Medium Cotton

Mill Cloth (Sales-tax) Act, 1954 (Madras Act XLI of 1954) and section 21-A of the Madras Prohibition Act, 1937 (Madras Act X of 1937), as in force in the

2[Mangalore and Kollegal]

area, the Mysore Sales Tax Act, 1948 (Mysore Act XLVI of 1948), as in force in the Mysore Area, the Hyderabad General Sales Tax Act, 1950 (Hyderabad Act XIV of 1950), as in force in the

1[Gulbarga Area,]

the Bombay Sales Tax Act, 1953 (Bombay Act III of 1953) and the Bombay Sales of Intoxicants Taxation Act, 1953 (Bombay Act No. XLVII of 1953) as in force in the

Tyres Taxation Act, 1953 (Coorg Act VIII of 1953) and the Coorg Tobacco (Taxation of Sales and Registration) Act, 1953 (Coorg Act IX of 1953), are hereby repealed:— 1. Adapted by the Karnataka Adaptations of Laws Order 1973 w.e.f. 1.11.1973. Provided that such repeal shall not effect—

1. (a) the previous operation of the said enactments or anything duly done or suffered thereunder; or 1957: KAR. ACT 25] Sales Tax
2. (b) any right, privilege, obligation or liability acquired, accrued or incurred under the said enactments; or
3. (c) any penalty, forfeiture or punishment incurred in respect ofany offence committed against the said enactments; or
4. (d) any investigation, legal proceeding (including assessment proceeding) or remedy in respect of any such right, privilege, obligation, liability, forfeiture or punishment as aforesaid; and any such investigation, legal proceeding or remedy may be instituted, continued or enforced, and any such penalty, forfeiture or punishment may be imposed as if this Act had not been passed. 1[(1A) Notwithstanding anything contained in sub-section (1), nothing contained in any of the repealed enactments or the rules made thereunder 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 assessee or any person in consequence of, or to give effect to, any finding, direction or order made under any provision of the relevant repealed enactment or any judgment, decree or order made by the Supreme Court, the High Court or any other Court whether before or after the commencement of this Act.]

¹ Inserted by Act 26 of 1962 w.e.f. 1.10.1957.

1. (2) Notwithstanding anything contained in sub-section (1), for the purpose of giving effect to the preceding proviso, to the said sub-section (1), the State Government may, by notification, make such provision as appears to it to be necessary or expedient.—
   • (a) for making omissions from, additions to and adaptations and modifications of the rules, notifications and orders issued under the repealed enactments;
   • (b) for specifying the authority, officer or person who shall be competent to exercise such functions exercisable under any of the repealed enactments or any rules, notifications, or orders issued thereunder as may be mentioned in the said Notification. 1[(3) Notwithstanding anything contained in sub-section (1), during the period between the first day of November, 1956, and the date of commencement of this Act, where in respect of any goods,—
     • (i) a single point sale or purchase tax was leviable under more than one of the repealed enactments; or
     • (ii) a single point sale or purchase tax was leviable under any repealed enactment and also a multi-point sale or purchase tax was leviable under any other repealed enactment, and the State Government is of opinion that in order to avoid hardship it is necessary so to do, it may, by notification, and subject to such restrictions and conditions as may be specified in such notification, make an exemption or reduction in rate, of any tax payable under any of the repealed enactments on the sale or purchase at specified

¹ Inserted by Act 32 of 1958 w.e.f. 1.1.1959.

Sales Tax [1957: KAR. ACT 25 point or points in the series of sales by successive dealers of any specified class of goods: Provided that any amount collected by way of tax at one or more points in the series of sales shall be payable to the State Government by the dealer making the collection as if it were a tax payable by such dealer under the relevant repealed enactment.]

(1) If any difficulty arises in giving effect to the provisions of this Act in consequence of the transition to the said provisions from the provisions of the Acts in force immediately before the commencement of this Act, the State Government may, by notification in the Official Gazette, make such provisions as appear to it to be necessary or expedient for removing the difficulty. (2) If any difficulty arises in giving effect to the provisions of this Act (otherwise than in relation to the transition from the provisions of the Acts in force before the commencement of this Act), the State Government may, by notification, make such provisions, not inconsistent with the purposes of this

1. (2) If any difficulty arises in giving effect to the provisions of this Act (otherwise than in relation to the transition from the provisions of the Acts in force before the commencement of this Act), the State Government may, by notification, make such provisions, not inconsistent with the purposes of this

Provisions relating to Appellate Tribunal.- (1) All appeals and proceedings transferred to, or instituted before the Mysore Board of Revenue, consequent on that specification of that authority by notification in the Official Gazette under section 122 of the States Reorganization Act, 1956, as the authority competent to exercise the functions of the Appellate Tribunal and Tribunal, respectively, under the Madras General Sales Tax Act, 1939 (Madras Act IX of 1939), the Mysore Sales Tax Act, 1948 (Mysore Act XLVI of 1948), the Hyderabad General Sales Tax Act, 1950 (Hyderabad Act XIV of 1950), and the Bombay Sales Tax Act, 1953 (Bombay Act III of 1953), and pending before the said Board of Revenue shall stand transferred to the Appellate Tribunal constituted under this Act and the aforesaid notification in so far as it relates to such specifications of the Mysore Board of Revenue shall stand repealed.

1. (2) Notwithstanding anything contained in any law, any appeal or other proceeding to be preferred to any Appellate Tribunal or Tribunal under any enactment referred to in sub-section (1) shall be preferred to the Appellate Tribunal constituted under this Act.
2. (3) Notwithstanding anything contained in the enactments referred to in sub- section (1), the provisions of sections 22, 23 and 25 of this Act shall be applicable to all appeals and other proceedings transferred to or preferred to the Appellate Tribunal.

1[(1)] Notwithstanding anything contained in

2[section 40]

or in any enactment repealed by that section, any person assessed or assessable to tax or taxes under any of the said enactments during the assessment year prior to the commencement of this Act, shall be liable to tax or taxes on his total turnover or turnovers during the period of the assessment year ending on the date of commencement of this Act, at the rate or rates specified in the said enactments whatever his total turnover or turnovers for the whole of the assessment year may be.

² Substituted by Act 31 of 1958 w.e.f. 1.1.1959.

1957: KAR. ACT 25] Sales Tax 1. Re-numbered by Act 12 of 1961 w.e.f. 1.10.1957.

¹ Inserted by Act 12 of 1961 w.e.f. 1.10.1957.

1[(2) Notwithstanding anything contained in this Act any person assessable to tax or taxes under this Act during the period commencing on the date of the commencement of this Act and ending on the date of commencement of the next assessment year in respect of such person, shall be liable to tax or taxes on his total turnover or turnovers during the said period at the rate or rates specified in this Act, whatever the total turnover or turnovers of such person for the whole of the assessment year may be.]

1[(3) Notwithstanding anything contained in this Act, where in respect of the sale or purchase of any goods, the rate of tax (hereinafter referred to as the original rate) is revised, or no tax is payable, from any date during any year, the turnover of a dealer or other person during the period upto that date in that year shall be liable to tax at the original rate, and his turnover during the period from that date till the end of that year shall be liable to tax at the revised rate, or shall not be liable to tax, as the case may be.]

¹ Inserted by Act 30 of 1962 w.e.f. 1.10.1957.

¹ Inserted by Act 16 of 1967 w.e.f. 1.1.1968.

1[(4) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1966, is more than seven thousand and five hundred rupees but is less than ten thousand rupees shall be regulated as follows, namely:—

1. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the first April, 1966 and shall not be liable to pay monthly instalments for the remaining months thereafter;
2. (b) in the case of any other dealer, the turnover, during the period from the commencement of the year upto the first April, 1966, shall be liable to tax and also licence fee, if any, and his turnover during the remaining period from the first April, 1966, shall not be liable to tax and licence fee.] 1[(5) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the first day of April, 1970, is more than ten thousand rupees but is less than twenty- five thousand rupees, shall be regulated as follows, namely:—
3. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the first April, 1970 and shall not be liable to pay monthly instalments for the remaining months thereafter; and
4. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the first day of April, 1970, shall be liable to

¹ Inserted by Act 9 of 1970 w.e.f. 1.4.1970.

Sales Tax [1957: KAR. ACT 25 tax and licence fee, if any, and his turnover during the remaining period from the first April, 1970, shall not be liable to tax.]

¹ Inserted by Act 13 of 1982 w.e.f. 29.3.1981.

3[(6) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1981 is more than twenty-five thousand rupees but is less than thirty-five thousand rupees, shall be regulated as follows, namely:—

1. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the First day of April, 1981, and shall not be liable to pay monthly instalments for the remaining months thereafter; and
2. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1981, shall be liable to tax and his turnover during the remaining period from the First day of April, 1981, shall not be liable to tax.] 1[(7) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1982 is less than thirty-five thousand rupees but is more than twenty-five thousand rupees, shall be regulated as follows, namely:—
3. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall not be liable to pay monthly instalments for the months immediately prior to the First day of April, 1982, and shall pay the amount due in monthly instalments for the remaining months thereafter; and
4. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1982, shall not be liable to tax and his turnover during the remaining period from the First day of April, 1982, shall be liable to tax.] 1[(8) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1983, is more than twenty-five thousand rupees but is less than forty thousand rupees, shall be regulated as follows, namely:—
5. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the First day of April, 1983, and shall not be liable to pay monthly instalments for the remaining months thereafter; and
6. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1983, shall be liable to tax and his turnover during the remaining period from the First day of April, 1983, shall not be liable to tax.] 1957: KAR. ACT 25] Sales Tax 1[(8-A) Notwithstanding anything contained in this Act, the provisions of section 17(4) as amended by the Karnataka Sales Tax (Second Amendment) Act, 1983, shall not apply to the composition of tax payable in respect of any year commencing prior to the commencement of the said Act, but the provision of the said sub-section as they stood prior to such commencement shall apply to such composition.] 1[(9) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year which ends on a date after the First day of April, 1984, is more than forty thousand rupees but is less than one lakh rupees, shall be regulated as follows, namely:—
7. (a) in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due in monthly instalments for the months immediately prior to the First day of April, 1984, and shall not be liable to pay monthly instalments for the remaining months thereafter; and
8. (b) in the case of any other dealer, the turnover during the period from the commencement of the year upto the First day of April, 1984, shall be liable to tax and his turnover during the remaining period from the First day of April, 1984, shall not be liable to tax.] 1[(9-A) Notwithstanding anything contained in this Act, the provisions of section 17(4) as amended by the Karnataka Sales Tax (Amendment) Act, 1984, shall not apply to the composition of tax payable in respect of any year commencing prior to the commencement of the said Act but the provisions of the said sub-section as they stood prior to such commencement shall apply to such composition.

¹ Inserted by Act 13 of 1982 w.e.f. 1.4.1982.

¹ Inserted by Act 10 of 1983 w.e.f. 1.4.1983.

¹ Inserted by Act 27 of 1985 w.e.f. 18.11.1983.

¹ Inserted by Act 8 of 1984 w.e.f. 1.4.1984.

¹ Inserted by Act 27 of 1985 w.e.f. 1.4.1984.

1. (10) Notwithstanding anything contained in this Act, the provisions of section 17(1) as amended by the Karnataka Sales Tax (Amendment) Act, 1985, shall not apply to the composition of tax payable in respect of any year commencing prior to the commencement of the said Act but the provisions of the said sub-section as they stood prior to such commencement shall apply to such composition.] 1[(11) (i) Notwithstanding anything contained in this Act, a dealer whose assessment year 2[commences] on a date after the 1st day of April, 2[1988] shall complete his accounts and close them on the 31st day of March, 2[1989] and submit his returns as if his assessment year ended on the 31st day of March, 2[1989] .
   • (ii) Where the turnover for the period specified in clause (i) (hereinafter referred to in this sub-section as returned turnover) is not less than the turnover specified under sub-section (5) of section 5 or section 6B, as amended by the Karnataka Sales Tax (Amendment) 1[Act, 1987 (Karnataka Act 14 of 1987)] , it shall be assessed to tax in accordance with the

¹ Inserted by Act 14 of 1987 w.e.f. 1.4.1987.

² Substituted by Act 15 of 1988 w.e.f. 1.4.1987.

Sales Tax [1957: KAR. ACT 25

¹ Substituted by Act 15 of 1988 w.e.f. 1.4.1987.

provisions of this Act. Where the returned turnover is less than the turnover specified under the said sections, then, notwithstanding anything contained in this Act, such returned turnover shall be assessed to tax under this Act, if the turnover of the dealer for the year immediately preceding the assessment year referred to in clause (i) was not less than the turnovers specified under the said sections. (iii)(a) Notwithstanding anything contained in this Act, in the case of a dealer permitted to pay any amount by way of composition under section 17, such dealer shall pay the amount due for the period ending 31st day of March,

¹ Substituted by Act 15 of 1988 w.e.f. 1.4.1987.

1[1989] at the rates permitted in form 8-A and his assessment shall be completed as specified in clause (b).

1. (b) Where the assessing authority is satisfied that the returned turnover is correct and complete or where the returned turnover appears to the assessing authority to be incorrect and incomplete, after determining the turnover to the best of his judgment, recording reasons for such determination, the assessing authority shall determine the total turnover for the purpose of ascertaining the rate of tax by applying the following formula:— Total turnover = returned/determined turnover x 12 (months) Number of months for which the turnover returned or determined relates After arriving at the total turnover as above,—
   • (i) the dealer shall not be assessed to tax, if his total turnover is less than the turnover specified in sub-section (5) of section 5 of this Act; or
   • (ii) the dealer shall be assessed to tax on his returned turnover or, as the case may be the determined turnover at such rates applicable under section 17 of this Act depending upon the total turnover arrived at above, if the said total turnover is not less than the turnover specified in sub-section (5) of section 5. Explanation.—For the purpose of this clause any period equal to or in excess of 15 days shall be reckoned as one month and any such period less than 15 days shall be ignored.] 1[(12) Notwithstanding anything contained in this Act, the assessment of a dealer whose total turnover for the year ending on the 31st day of March, 1992, is one lakh rupees or more but is less than two lakh rupees, shall be regulated as follows, namely:—
2. (a) in the case of a dealer permitted to pay any amount by way of composition under sub-section (1) or (4) of section 17, such dealer shall pay the amount due in monthly instalments for the months prior to the first day of October, 1991, and shall not be liable to pay monthly instalments for the remaining months thereafter; and 1957: KAR. ACT 25] Sales Tax
3. (b) in case of any other dealer, the turnover during the period prior to the first day of October, 1991, shall be liable to tax and his turnover thereafter shall not be liable to tax.]

¹ Inserted by Act 4 of 1992 w.e.f. 1.4.1992.

Sales Tax [1957: KAR. ACT 25

SCHEDULES

¹ Omitted by Act 31 of 1958 w.e.f. 1.1.1959

1[First Schedule x x x]