Reduction in tax liability

(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.