Powers to order production of accounts and powers of entry, inspection and seizure

(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.