Chapter III TAX AUTHORITIES, RETURNS, ASSESSMENTS, PAYMENTS, RECOVERY, etc.

(1) Subject to other provisions of this Act and the rules made there under, the authorities for the time being empowered under the Karnataka Sales Tax Act, to assess, reassess, collect and enforce payment of tax, including any interest or penalty payable by an importer shall assess, reassess, collect and enforce payment of tax including any interest or penalty as if the tax or interest or penalty payable by an importer under this Act, is a tax or interest or penalty payable under the Karnataka Sales Tax Act and for this purpose they may exercise all or any of the powers they have under the Karnataka Sales Tax Act and all the provisions of that law including provisions relating to returns, provisional assessment, advance payment of tax, imposition of the tax liability of a person carrying on business on the transfer of, or successor to, any business transferred, transfer of liability of any firm or Hindu undivided family to pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third parties, appeals, reviews, revisions, references, rebates, penalties, charging or payment of interest, inspection of the premises of transporters, goods vehicles, business premises, search of residential accommodation, seizure of unaccounted notified goods, seizure of documents, offences and compounding of offences (excluding the provisions relating to matters provided in sections 10 and 11) and treatment of document furnished by an importer as confidential, shall apply accordingly.

(2) Subject to the provisions of sub-section (1) in the case of an importer other than a dealer, the assessment, payment, enforcement and collection of tax shall be such as may be prescribed. 1[(3) Notwithstanding anything contained in sub-section (1), the State Government or the Commissioner may, by notification, authorise officers to exercise powers and discharge duties and perform functions under this Act, in respect of such area and such dealer or classes of dealers, or such cases or classes of cases as may be specified in the notification.]1

1. Inserted by Act 11 of 2005 w.e.f. 1.4.2005.

(1) For the purpose of assessment of tax under this Act, the burden of proving that the notified goods brought into or caused to be brought into a local area, is not liable to tax under this Act, shall be on such importer. (2) Where an importer furnishes, issues or produces bill of sale, voucher, declaration, certificate or any other document which he knows or has reason to believe to be false with a view to support or make any claim that he or any other importer is not liable to be taxed under this Act, the assessing authority shall on detecting such furnishing or issue or production, direct the importer furnishing, issuing or producing such a bill of sale, voucher, declaration, certificate or other documents to pay as penalty,- (i) in the case of first detection, three times the tax levied or leviable in respect of such goods; and (ii) in the case of second or subsequent detection, five times the tax levied or leviable in respect of such goods: Provided that before issuing any direction for payment of penalty under this sub-section, the assessing authority shall give to the importer an opportunity of being heard against the levy of such penalty.

(1) No suit, prosecution or other proceedings shall lie against any officer or servant of the Government for any action taken or purporting to be taken under this Act, without the previous sanction of the Government, and no such suit, prosecution or other proceeding shall be instituted after the expiry of six months from the date of action complained of. (2) No officer or servant of the Government shall be liable in respect of any such action in any Civil or Criminal proceedings, if the action taken was in good faith in the course of execution of duties imposed on him or the discharge of functions entrusted to him by or under 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.