Payment and Recovery of Tax.-

1[(1) The Tax

under this Act shall be paid in such manner

3[in such

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

² Inserted by Act 23 of 1983 w.e.f. 18.11.1983.

³ Substituted by Act 13 of 1982 w.e.f. 1.4.1982.

instalments, subject to such conditions, on payment of such interest] and within such time, as may be prescribed.]

1[Provided that where the amount paid falls short of the aggregate of the tax or any other amount due and interest payable, the amount so paid shall first be adjusted towards interest payable and the balance, if any, shall be adjusted towards the tax or any other amount due.]

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

1[Provided further that the specified class of dealers as may be notified by the Commissioner shall pay the tax or any other amount due under this Act, by electronic remittance through internet in the manner specified in the said notification.]

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

(2)

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

1[If default is made in making payment in accordance with sub- section (1),] -

1. (i) the whole of the amount outstanding on the date of default shall become immediately due and shall be a charge on the properties of the person or persons liable to pay the tax 1[or any other amount due] under this Act; and

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

Sales Tax [1957: KAR. ACT 25

1[(ii) the person or persons liable to pay the tax

2[other than tax payable in advance for any year under sections 12 and 12B] or any other amount due under this Act shall pay a

3[interest] equal to

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

² Inserted by Act 5 of 2001 w.e.f. 1.4.2001.

³ Substituted by Act 5 of 2001 w.e.f. 1.4.2001.

⁴ Substituted by Act 11 of 2005 w.e.f. 1.4.2005

of the amount of tax or any other amount due remaining unpaid for each month after the expiry of the time specified under sub- section (1)]

1[Explanation

3[1] .— For purposes of clause (ii), the

2[interest]

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

² Inserted by Act 5 of 2001 w.e.f. 1.4.2001.

payable for a part of a month shall be proportionately determined.]

3. Re-numbered by Act 5 of 2002 w.e.f. 1.4.2002.

1[Explanation – II. – For the purpose of this sub-Section non-

payment during any period during which recovery of any tax or other amount due under the Act is stayed by an order of any authority or Court in any appeal or other proceedings disputing such tax or amount, shall be deemed to be a ‘default’.]

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

1[(2A) Notwithstanding anything contained in sub-section (2),

2[where the amount of

3[interest] does not exceed rupees five lakh the Commissioner and in other cases the State Government] may, subject to such conditions as may be prescribed, remit the whole or any part of the

3[interest] payable in respect of any period by any person or class of persons.]

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

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

³ Substituted by Act 5 of 2001 w.e.f. 1.4.2001.

1. (3) Any tax assessed, or any other amount due under this Act from a dealer 1[or any other person] may without prejudice to any other mode of collection be recovered—
   • (a) as if it were an arrear of land revenue, or 1[(aa) by attachment and sale or by sale without attachment of any property of such dealer or any other person by the assessing authority or the prescribed officer in accordance with such rules as may be prescribed;] 1[(aaa) as if it were an arrear of excise revenue under the Karnataka Excise Act, 1965 (Karnataka Act 21 of 1966) in the case of a dealer engaged in the manufacture or sale of liquor including beer, spirit and alcohol; or] Act. 1957: KAR. ACT 25] Sales Tax (b) 1[notwithstanding anything contained in 2[the Code of Criminal Procedure, 1973 (Central Act 2 of 1974)] , on application to any Magistrate] by such Magistrate as if it were a fine imposed by him: 1[Provided that where a dealer or other person who has appealed or applied for revision of any order made under this Act and has complied with an order made by the appellate or the revising authority in regard to the payment of the tax or other amount, no proceedings for recovery under this sub-section shall be taken or continued until the disposal of such appeal or application for revision.] 1[(4) The High Court may either suo motu or on an application by the Commissioner or any person aggrieved by the order revise any order made by a Magistrate under clause (b) of sub-section (3).] 1[13-A. Payment of interest.- Where any amount refundable to any person under an order made under any provision of this Act is not refunded to him within ninety days,—
   • (a) of the date of such order, if that order is made by the refunding authority; or
   • (b) of the date of receipt of such order by the refunding authority, if that order is made by an authority other than the refunding authority, the refunding authority shall pay such person simple interest at the rate of 1[six percent] per annum on the said amount from the day immediately following the expiry of the said ninety days to the day of the refund: Provided that the interest calculable shall be on the balance of the amount remaining after adjusting out of the refundable amount any tax, penalty or other amount due under this Act, for any year by the person on the date from which such interest is calculable. Explanation I.—If the delay or any part thereof in granting the refund within the aforesaid period of ninety days is attributable to the person to whom the refund is payable the period of such delay shall be excluded for the purpose of calculation of interest. Explanation II.—The expression "refunding authority" means an 1[Commercial Tax Officer] or 1[Assistant Commissioner of Commercial Taxes] or any other officer of the Commercial Taxes Department authorised to make any assessment or to levy penalty or both by or under this Act. Explanation III.—The interest payable for a part of a month shall be proportionately determined.]

¹ Inserted by Act 9 of 1970 w.e.f. 1.10.1957.

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

¹ Inserted by Act 21 of 2000 w.e.f. 11.1.2001 by notification. Text of the notification is at the end of the

¹ Substituted by Act 7 of 1972 w.e.f. 29.9.1972.

² Substituted by Act 18 of 1978 w.e.f. 1.9.1978.

¹ Substituted by Act 9 of 1964 w.e.f. 1.10.1957.

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

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

¹ Substituted by Act 5 of 1996 w.e.f. 1.4.1996 and again substituted by Act 26 of 2004 w.e.f. 1.8.2004.

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

Sales Tax [1957: KAR. ACT 25

1[13-B. Power to withhold refund in certain cases.- (1) Where an order giving rise to refund is the subject-matter of an appeal or further proceeding or where any other proceeding under this Act is pending, and the authority competent to grant such refund is of the opinion that the grant of refund is likely to adversely affect the revenue, such authority may, with the previous approval of the Commissioner, withhold the refund till such time as the Commissioner may determine.

1. (2) Where a refund is withheld under sub-section (1), the State Government shall pay interest in accordance with section 13-A on the amount of refund ultimately determined to be due to the person as a result of the appeal or further proceeding, for the period from the date immediately following the expiry of ninety days from the date of the order referred to in sub-section (1) to the date of refund.] 1[13-C. Purchase by the State Government in auction of property.-
2. (1) When any immovable property is brought for sale by auction for recovery of any dues under this Act, then notwithstanding anything contained in this Act, the Deputy Commissioners of the Revenue District or any officer authorised by the State Government, subject to any general or special order of the State Government in this behalf, be entitled to bid at such auction and purchase the property on account of the State Government.
3. (2) Where any property is purchased by the State Government under sub- section (1), then, notwithstanding anything in the Karnataka Land Revenue Act, 1964 or any other law, it shall be lawful for the State Government to dispose of such property in such manner as it deems fit.
4. (3) The purchase and disposal of the property under this section shall not be questioned in any court of law.] 1[13-D. Special powers for recovery of amounts due to Government.- Notwithstanding anything contained in this Act and the rules made thereunder, where any tax payable under this Act by a dealer has been deferred under section 19-C and where such deferred tax has been converted into loan by the Department of Industries and Commerce, Government of Karnataka, and upon such amounts becoming due, the assessing authority or any other officer exercising powers under section 13 may recover such amounts from such dealer as if it were an amount due under this Act.]

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

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

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