Chapter II LEVY OF TAX

(1) Subject to other provisions of this Act, there shall be levied and collected a tax on the entry of any notified goods into any local area for consumption, use or sale therein, on the value of the notified goods at the rate specified in respect of such goods under the Karnataka Sales Tax Act. 1[or the Karnataka Value Added Tax Act]1

1. Inserted by Act 11 of 2005 w.e.f. 1.4.2005. (2) The tax shall be payable by an importer in accordance with the provisions of this Act or the rules made there under.

(1) Where an importer of any notified goods liable to pay tax under this Act, being a dealer in notified goods becomes liable to pay tax under the Karnataka Sales Tax Act, 1[or the Karnataka Value Added Tax Act]1 by virtue of sale of such notified goods, then his liability under the Karnataka Sales Tax Act, 1[or the Karnataka Value Added Tax Act]1 shall be reduced to the extent of tax paid under this Act or if the tax paid under this Act is in excess of the amount paid under Karnataka Sales Tax Act, 1[or the Karnataka Value Added Tax Act]1 such excess tax paid shall be refunded as may be prescribed.

1. Inserted by Act 11 of 2005 w.e.f. 1.4.2005. (2) Where an importer who, not being a dealer in notified goods, causes entry of the notified goods for his own use or consumption from any Union Territory, or from any other State, then his liability under this Act, shall, subject to such conditions as may be prescribed, be reduced to the extent of amount of tax paid, if any, under the Law relating to General Sales Tax or under the Central Sales Tax Law as may be in force in that Union Territory or State.

(1)The State Government may if it is necessary so to do in public interest, by notification, exempt the tax payable under this Act, by any specified class of importers or on any class of notified goods. (2) Any exemption, notified under sub-section (1) may be subject to such restrictions and conditions as may be specified in the notification. (3) The State Government may, by notification, cancel or vary any notification issued under sub-section (1).