In
exercise of the powers conferred by Section 20 of the Karnataka Tax on
Luxuries [1][(x
x x x x)] Act, 1979 (Karnataka Act No. 22 of 1979), the Government of Karnataka
hereby makes the following rules, namely. (1)
These Rules may be called the
Karnataka Tax on Luxuries [3][x
x x x x] Rules, 1979. (2)
They shall come into force at once. (1)
In these rules, unless the context
otherwise requires. (a)
"Act" means the Karnataka
Tax on Luxuries [4][x
x x x x] Act, 1979; [5][(ab) "Fee" means any fee leviable under the
provisions of the Act;] (b)
"Form" means a form appended
to these rules; (c)
"Guest" means the person in
whose name the accommodation in a hotel is booked and who is liable to pay the
luxury tax under the Act; [6][(cc) "Registering Authority" means the
registering authority specified in Rule 2-A;] [7][(cd) "Schedule" means Schedule to the Act;] (d)
"Section" means a Section of
the Act; (2)
Words and expression used but not
defined in these rules shall have the meaning respectively assigned to them in
the Act. [8](1) The [9][Luxury
Tax Officer] shall be the registering authority in respect of [10][hotels,
marriage halls and stockists] situated within his jurisdiction. - (2) In the case of
proprietors having more than [11][one
hotel or marriage hall] in the State, the registration authority for
those [12][hotels
or marriage halls] shall be the registration authority having jurisdiction over
the Head Office of such 10[hotels or marriage halls], [13][(3) In the case of stockists having more than one place of
business in the State, the registration authority for such additional places of
business shall be the registration authority having jurisdiction over the Head
Office of such stockists.] [14]The registering authority of an area shall be the Assessing
Authority in respect of the proprietors or the stockists in that area.] [15](1) Every [16]proprietor [17][or
stockist] liable to pay tax under this Act shall apply for registration to the
registering authority in Form-I within thirty days from the date from which he
commences to provide luxury in the [18][hotels
or in the marriage halls] [19][or
in the case of a stockist, within thirty days from the date of commencement of
business of stockist]: [20][Provided that the stockists who have already commenced
business shall apply for registration within thirty days from the date of
publication of the Karnataka Tax on Luxuries (Amendment) Rules, 1997.] (2) Every such
application shall be accompanied by a Treasury challan or Bank draft in favour
of the registering authority for having paid the fee specified under Section
4-A: Provided
that no such registration or renewal fee shall be paid in the case where the
proprietor [21][or
stockist] is already registered under the Karnataka Sales Tax Act, 1957. [22][(2-A) Every such application by a proprietary concern,
partnership firm, Hindu undivided family or Association of individuals, shall
also be accompanied by recent passport size photographs in duplicate of the
person signing the application.] [23][(3) The registering authority, on receipt of application
under sub-rule (1) shall, if he is satisfied after making such enquiry as he
deems necessary that the particulars furnished in the application are correct
and complete, register the proprietor or the stockist and grant registration
certificate in Form I-A. In the case of a proprietor applying for registration
in respect of more than one hotel or marriage hall in the State or in the case
of a stockist, in respect of more than one place of business in the State, the
registering authority shall grant a copy of registration. certificate granted
to the Head Office of such proprietor or stockist The registration certificate
granted under this sub-rule shall not be transferable.] (4) Every
registration certificate granted under Rule 3 shall be renewed every year within thirty days from the date of
commencement of the year on payment of fee specified under Section 4-A. (5) The registration
certificate granted or renewed under this rule shall be exhibited in a
conspicuous place of business of the [24][proprietor
or the stockist]. (6) Where the
registration certificate granted or renewed tinder these rules is lost, destroyed,
defaced or mutilated, a duplicate copy of such registration certificate maybe
granted by the registering authority, if. he is satisfied of such loss,
destruction, defacement or mutilation, on payment of a fee of rupee one. (1)
Where proprietor [25][or
stockist] desires that the registration certificate granted to him requires any
amendment of such certificate shall make an application before the registering
authority who has granted such certificate specifying the reasons for such
amendment together with the registration certificate. (2)
The registering authority on receipt
of such application under sub-rule (1) if satisfied, after making such enquiry
as he deems fit amend such registration certificate including the copies
thereof. Every
proprietor [26][or
stockist] shall furnish security payable under Section 4-A in the form of
Government Securities or bank guarantee from any scheduled banks in favour of
the registering authority.] (1)
Every proprietor shall maintain. (a)
information of the luxury provided and
the tariff therefore in his hotel, in [27][Form
I-BH] [28][or
in his marriage halls in [29][Form
I-BM]]; (b)
daily account of occupation of lodging
accommodation in his hotel and collection of luxury tax therefor, in [30][Form
II-H]; [31][(bb) daily account of accommodation in his marriage hall
and collection of luxury tax therefor in [32][Form
II-M], and]; (c)
monthly abstract of collection and
remittance of luxury tax, in [33][[34][Form
IV-H] in the case of hotels or [35][Form
IV-M] in the case of marriage halls]. (2)
The proprietor shall maintain a
separate bound register for each of these forms, and shall get each of the
pages of such registers numbered, sealed and certified by the [36][Luxury
Tax Officer], or any officer duly authorised by him in this behalf. [37][(3) Every registered stockist and every person liable to
registration as a stockist under the Act, shall keep and maintain true and
complete accounts of every receipt and delivery/removal of stock of luxuries
together with supporting documents such as invoices, challans, advice or other
documents of similar nature. (4) Each and every
receipt and each and every delivery, removal, despatch of stock of luxuries
shall be brought to account then and there. (5) In the case of a
manufacturer of luxuries, books of accounts and documents to be maintained
shall be as prescribed under Central Excise Rules, 1944. (6) In the case of
an importer of luxuries, the importer shall maintain day-to-day stock account
in respect of each variety of luxury dealt in by him. The day-to-day stock
account shall contain particulars in terms of quantity and value, in respect
of. (i)
Opening balance of Stock; (ii)
Receipts either by way of purchases or
inward stock transfers or any such nature; (iii)
Deliveries either by way of sales,
removals, despatches or any such nature and; (iv)
Closing balance of stock. (7) In respect of
books of accounts and documents prescribed under the Central Excise Rules, 1944, they shall be preserved for
the duration prescribed under the said rules. Other books of accounts and
documents prescribed hereabove shall be preserved for a period of eight years
from the year to which they relate or until the assessment for the year to
which the books relate to has become final, whichever is later. (8) Any loss of
books of accounts shall be reported forthwith to the Station House Officer of
the nearest police station to the location of the business premises of the
stockist and to the jurisdictional Luxury Tax Officer.] (1)
[38][The proprietor of a hotel shall submit a return in [39][Forms
I-BH, II-H and III-H] and the proprietor of marriage hall shall submit a return
in [40][Form
1-BM, and III-M] maintained by him under Rule 3 to the [41][Luxury
Tax Officer] within the period provided in Section 5: [42][Provided that in the case of proprietors having more than
one hotel [43][or
marriage hall] in the State shall include all particulars relating to other
hotels in their returns to be filed in respect of Head Office of [44][such
hotel or marriage hall]]. [45][(2) Every stockist shall submit a return in Form HI-S
within sixty days after the close of the year to which the return relates, In
the case of a stockist having more than one place of business in the State the
return shall include particulars relating to all such places of business.] [46][(3) Every proprietor [47][or
the stockist] signing the return shall subscribe a solemn affirmation that the
facts mentioned in that return are true to the best of his knowledge,
information and belief. (4) The [48][Luxury
Tax Officer] may verify the returns from the bound registers maintained under
Rule 3.] [49][The statement to be submitted under Section 5-A shall be
in [50][Form
II-AP in the case of a proprietor and in Form II-AS in the case of a stockist], [51] [52][(1)] Every proprietor liable to pay luxury tax under the
Act shall issue a bill or cash memorandum in respect of the charges for
lodging [53][accommodation
or charges for marriage hall] recovered by him from a [54][guest
or any person] and shall specify in such bill or cash memorandum, the full name
of the [55][hotel
or marriage hall], the amount of luxury tax recovered, the name of the 42[guest or any person] from whom it is recovered and where
the charges are recovered in any foreign exchange, the name of the currency. [56][(2) Every registered stockist or a stockist liable to
registration under the Act, in respect of each and every delivery of a luxury
which is in pursuance of a sale shall issue a bill of sale containing the
particulars and which is other than in pursuance of a sale shall issue a
delivery note, prescribed, respectively, in sub-rule (1) and clause (i) of
sub-rule (1-A) of Rule 23-B of Karnataka Sales Tax Rules, 1957], [57](1) For the purposes of sub-section (3) of Section 4-B, a
stockist claiming exemption from tax shall furnish to the Luxury Tax Officer
proof of declaration. (i)
in respect of luxuries on which tax
under the Act has been paid or has become payable, in Form XII obtained from
the stockist who is liable to pay the tax; and (ii)
in respect of luxuries on which tax
under the Karnataka Tax on Entry of Goods Act, 1979 has been paid or has become
payable, in Form 40 prescribed under the Karnataka Tax on Entry of Goods Rules, 1979 obtained from the dealer who is liable to
pay the tax. (2) A stockist who
is liable to pay the tax on the turnover of stock of luxuries delivered to another
stockist, shall issue the declaration in Form XII to such other stockist". (1)
The statement in Form II-AA or in Form
II-AB, as the case may be, shall be sent to the Luxury Tax Officer so as to
reach him within twenty days after the close of the month to which such
statement relates, accompanied by a receipt from a Government Treasury, a
crossed cheque or a crossed demand draft in favour of the Luxury Tax Officer
for the full amount of tax payable for the month and the crossed cheque or the
crossed demand draft shall be encashable at the bank situated in the place of
location of the office of the Luxury Tax Officer or the principal place of
business of the proprietor or stockist in the State. (2)
If the amount sent by a proprietor or
stockist along with the statement under sub-rule (1), is less than the amount
of tax payable by him, the Luxury Tax Officer shall serve upon the proprietor
or the stockist, as the case may be, a notice in Form VI-A and the proprietor
or stockist shall pay the sum demanded in the said notice within the time and
in the manner specified therein. (3)
After making a provisional assessment
under sub-section (3) of Section 5-A, if any amount is found to be due from the
proprietor or stockist towards the provisional assessment, the Luxury Tax
Officer shall serve upon the proprietor or stockist a notice in Form VI and the
proprietor or stockist shall pay the sum demanded within the time and in the
manner specified therein. (4)
If any registered stockist shows to
the satisfaction of the Luxury Tax Officer that the stocks of luxuries which he
receives are not liable to Luxury Tax, and makes an application in this behalf
in Form XIX, the Luxury Tax Officer may direct that it shall not be necessary
for such stockist to furnish the statements specified in sub-rule (1), and may
grant the stockist a certificate in Form XX: Provided
that if during validity of a certificate issued in Form XX, such stockist
becomes liable to tax by receiving any stock of luxuries, the certificate shall
be deemed to be cancelled. (5)
A certificate issued under sub-rule
(4) shall be valid till the expiry of the year of issue unless otherwise
cancelled. On an application made in that behalf by the stockist, within one
month before the date of expiry of the certificate, the Luxury Tax Officer may
after such enquiry as he deems fit renew the certificate for a further period
of one year at a time; Provided
that the Luxury Tax Officer may, for reasons to be recorded in wilting accept
the application beyond the specified period but within a year for which the
certificate relates], (1)
For the purpose of levy of tax under
Section 4-B, the turnover of stock of luxuries shall be determined by deducting
from the aggregate value of stock of luxuries, the following amounts, subject
to the conditions specified in respect of each. (a)
amount of value of stock of luxuries
representing opening stock as on First day of the year; (b)
amount of value of stock of luxuries
on which tax under the Act has been paid or has become payable, subject to
production of proof in Form XII; (c)
amount of value of stock of luxuries
on which tax under the Karnataka Tax on Entry of Goods Act, 1979 (Karnataka Act
27 of 1979), has been levied or has become leviable, subject to production of
proof in Form 40 prescribed under the Karnataka Tax on Entry of Goods Rules,
1979; (d)
amount of value of stock of luxuries
despatched to places outside the State; (e)
amount of value of stock of luxuries
returned to the stockist, subject to condition that such return is within a
period of six months from the date of delivery either in pursuance of a sale or
despatch other than by way of sale and that in respect of such return of
luxuries, tax under the Act has already been paid; (f)
amount of value of stock of luxuries
destroyed as unfit for consumption subject to production of Certificate of
destruction issued by the Central Excise Department, Government of India.] [58](1) (a) Every
registered proprietor shall submit a return in Form III-H and III-M and every
registered stockist a return in Form IIT-S to the Luxury Tax Officer so as to
reach him within thirty days after the close of the year to which the return
relates: Provided
that every proprietor or stockist who discontinues his business during the
course of the year, shall submit the return to the Luxury Tax Officer, for the period upto and inclusive of
the date of discontinuance, within Fifteen days from the date of such
discontinuance. (b)
Every proprietor or stockist, who submits a return under clause (a) shall
submit along with the return, receipt from the Government Treasury, crossed
cheque or crossed demand draft in favour of the Luxury Tax Officer for the full
amount of tax payable for the year on the basis of the return after deducting
therefrom the tax, if any, already paid for the year and the crossed cheque or
crossed demand draft shall be encashable at the bank situated in the place of
location of office of the Luxury Tax Officer or the principal place of
business, of the proprietor or the stockist, in the State; (c)
If the full amount of tax payable under clause (b) is not paid along with
return, the Luxury Tax Officer shall serve upon the proprietor or stockist a
notice in Form VI-B and the proprietor or stockist shall pay the amount
demanded in the said notice " within the time and in the manner specified
therein. (2) On receipt of
the return in Form III-H, III-M or III-S, the Luxury Tax Officer shall, if he
is satisfied after such scrutiny of accounts and such enquiries as he considers
necessary, the return is correct and complete, finally assess on the basis of
the return, the tax payable under "the Act for the preceding year or for
the part of the year to which the return relates, as the case may be. (3) Before making
the assessment to the best of his judgment under sub-section (2) of Section 6
the Luxury Tax Officer shall. (i)
if no return is submitted by the
proprietor or stockist, issue a notice in Form XIII; (ii)
if the return submitted by the
proprietor or stockist appears to the Luxury Tax Officer to be incorrect or
incomplete, issue a notice in Form XIII-A. (4) After making the
final assessment under sub-rule (2) or (3) if any amount is found to be due
from the proprietor or the stockist towards the final assessment, the Luxury
Tax Officer shall serve upon the proprietor or stockist a notice in Form VI and
the proprietor or stockist shall pay the sum demanded within the time and in
the manner specified in the notice. If the tax due on the final assessment is
lower than the tax already paid, the Luxury Tax Officer shall serve upon the
proprietor or stockist, a notice in Form VI-C for refund of the excess tax
along with a refund payment order in Form VIII-A for the amount of refund due.
If the tax levied in the final assessment is exactly equal to the tax already
paid, the Luxury Tax Officer shall inform the proprietor or-the stockist,
accordingly: Provided
that the excess tax refundable to the proprietor or stockist may be adjusted
towards any oilier amount due by him under the Act, and for this purpose, a
refund adjustment order in Form VIII-C shall be issued. (Assessment order in the case of a proprietor shall be in Form
V)]. The
order imposing penalty tinder Section 7 shall be in Form VII. [59] [60][(1)] If the amount already paid as tax in respect of
any [61][year]
exceeds the amount assessed under Section 6 or in an appeal, if any, under
Section 9 [62][or
under Section 11 or under Section 11-B] or in revision, if any, under Section
10 [63][or under Section 11-A], the [64][Luxury
Tax Officer] shall, after adjusting the excess amount towards the recovery of
any amount of "which a notice has been issued under Section 6, issue in
favour of the proprietor [65][or
stockist] an order in [66][Form
VIII-A or Form VIII-C as the case may be] on the Government Treasury or the
Reserve Bank of India, as the case may be, for the refund of the balance, if
any, of such excess amount. [67][(2) Where any interest under Section 12 is due to a
proprietor or stockist, the Luxury Tax Officer shall record an order
sanctioning such payment of interest and communicate the order to the
proprietor or stockist concerned, together with interest payment order in Form
VIII-B or interest adjustment order in Form VIII-D, as the case may be]. [68][In respect of penalty accrued under sub-section (3) of
Section 8, in a case, where such penalty is not exceeding five lakh rupees, the
Commissioner and in other cases, the Government, shall for reasons to be
recorded in writing have power, to remit the whole or part of such penalty; Provided
that no remission shall be made in any case in which the amount of tax finally
determined is not paid in full]. The
appellate authority for the purpose of Section 9 shall be the [69][Joint
Commissioner of Commercial Taxes] appointed tinder the Karnataka Sales Tax Act,
1957 (Karnataka Act No. 25 of 1957). [70][(1) An appeal under Section 9 shall be in' Form XV and
shall be verified in the manner specified therein. (2) The appeal may
be sent by the appellant or his duly authorised agent or legal practitioner or
accountant to the Appellate Authority by registered post or may be presented to
that authority or to such officer as the authority may authorise in this
behalf]. [71][(1) Every appeal under Section 11 to the Appellate
Tribunal shall be in Form XVI and shall be verified in the manner specified
therein; (2) It shall be in
quadruplicate and accompanied by four copies of the order appealed against one
of which shall be the original or an authenticated copy, and also four copies
of the order of the Luxury Tax Officer in respect of which the order appealed
against was passed; (3) In the case of
an appeal preferred by any person other than an officer empowered by the State
Government under sub-section (1) of Section 11 it shall also be accompanied by
a Treasury receipt for having paid the fee calculated at the rate of two per
cent of the amount of assessment objected to, subject to a minimum of rupees
twenty and a maximum of rupees two hundred. (4) Every Memorandum
of cross objections under Section 11 shall be in Form XVI-A and shall be
verified in the manner specified therein. Every
appeal under Section 11-B to the High Court shall be in Form XVIII and shall be
verified in the manner specified therein. It shall be accompanied by the
original order or a certified copy of the order of the Commissioner appealed
against. (1)
(a) Every petition under Section 11-A to the High Court shall be in Form XVII and
shall be verified in the manner specified therein. (b)
The petition shall be accompanied by a certified copy of the order of the
Appellate Tribunal. (2)
It shall be preferred within ninety
days from the date of communication of the order of the Appellate Tribunal. (1)
Every order of an Appellate or
Revising Authority under Section 9 or 10, as the case may be, shall be
communicated to the appellate or to every other party affected by the order and
to the Luxury Tax Officer concerned. (2)
The order passed in appeal or revision
shall be given effect to by the Luxury Tax Officer who shall refund without
interest any excess tax found to have been collected and shall collect any tax
which is found to be due in the same manner as a tax assessed by himself. Where
the tax as determined by the Luxury Tax Officer appears to the Appellate
Authority or to the Revising Authority to be less than the correct amount of
the tax payable by the proprietor or stockist, the Appellate or Revising
Authority shall, before passing orders, under Section 9 or under Section 10, as
the case may be, determine the correct amount of tax payable by the proprietor
or stockist, after issuing a notice to the proprietor or stockist and after
making such enquiry as such Appellate or Revising Authority considers
necessary. Every
order passed by the Appellate Tribunal or the High Court, shall be given effect
to by the Luxury Tax Officer, who shall refund without interest any excess tax
found to have been collected and shall also collect any tax which is found to
be due in the manner as tax assessed by himself]. In
an appeal under Section 9 from an order of the [72][Luxury
Tax Officer] the appellate authority shall as far as may be and with the
necessary modifications, follow the practice and procedure prescribed for
appeals from original decrees to a District Court by the Civil Procedure Code,
1908. [73](1) Where any rectification under Section 10-A of the Act
has the effect of enhancing the assessment, the Luxury Tax Officer shall serve
on the proprietor or stockist a revised notice in Form VI and thereupon the provisions of the Act
and the rules shall apply as if such notice had been served in the first
instance. (2) Where such
rectification has the effect of reducing the assessment, the Luxury Tax Officer
shall make refund which may be due to the proprietor or stockist by the issue
of a refund payment order in Form-VII-A or refund adjustment order in Form
VIII-C]. Unless
the 7[Luxury
Tax Officer] deems it necessary to make a surprise visit, he shall give a
reasonable notice in writing to the proprietor liable to collect and pay the
luxury tax under the Act of his intention to inspect the working records and
accounts including bound registers, for the purposes of sub-section (1) of
Section 17 of the Act. A
notice under the provisions of this Act may be served by registered post or by
delivering or tendering it to the person to whom it is addressed or to his
agent or by affixing a copy thereof at some conspicuous place at the hotel or residence
of the proprietor liable to pay luxury tax under the Act. (1)
The proprietor of [74][a
hotel or marriage hall] [75][or
stockist, as the case may be] who is liable to pay the luxury tax may apply to
the [76][Luxury
Tax Officer] for a certified copy of any document produced or filed by him or
of an order passed by the [77][Luxury
Tax Officer], (2)
An application made under sub-rule (1)
shall be accompanied by a [78][proof
of payment of] fee at the rate of rupees two per page. [79][(1) The tax or other miscellaneous amounts payable under
the Act or these rules shall be paid by the proprietor of the [80][hotel
or marriage hall] 59[or
stockist, as the case may be]. (i)
by money order or in cash to the [81][Luxury
Tax Officer], or (ii)
by remittance into the Government
Treasury through a Challan in Form No. IX.] [82][(iii) by crossed cheque, or crossed demand draft, in
favour of the Luxury Tax Officer.] [83][(1-A) if a cheque sent by a proprietor or stockist towards
payment of tax or other amount due under the Act or these rules is dishonoured
for want of adequate financial cover, the proprietor or stockist shall not
thereafter be permitted to make payment by means of a cheque for such time as
the Luxury Tax Officer concerned; in his discretion specifies: Provided
that before taking action under this sub-rule, the Luxury Tax Officer shall
afford a reasonable opportunity to the proprietor or stockist to show cause
against such action], [84][(2) The receipt for the payment made in cash to the [85][Luxury
Tax Officer] shall be in Form No. X.] [86][(3) The challans shall be filled-up in quadruplicate. The
copies marked original and duplicate shall be returned to the proprietor [87][or
stockist] duly receipted as a proof of payment of which the copy marked in
duplicate shall be attached by him to the return or statement to be submitted
to the assessing authority. The third copy marked as triplicate shall be
retained by the Treasury for being sent to the audit office with monthly
accounts. The fourth copy marked quadruplicate shall be forwarded as soon as
possible by the Treasury Officer to the assessing authority concerned], [88][Every proprietor [89][or
stockist] liable to pay tax under [90][Section
3-C, [91][Section
4-A or Section 4-B]] shall within ninety days from the date of registration of
his [92][hotel, [93][marriage
hall or place of
business of stockist]] send a declaration in Form XI to the registering
authority specifying the name or names of persons who are authorised to sign on
his behalf in respect of returns or documents to be filed before such authority
under the provisions of the Act or rules. Such declaration shall unless
otherwise revoked be binding on the proprietor [94][or
stockist]]. [95]Any Officer requiring any proprietor or stockist to produce
before him the accounts and other documents or to furnish any information
relating to his business shall serve upon the proprietor or stockist a notice
in Form XIV-A. (1)
If a proprietor or stockist enters
into partnership in respect of his business, he shall report the fact to the
Luxury Tax Officer concerned within Fifteen days of his entering into such
partnership, The proprietor or stockist and the partners shall jointly and
severally be responsible for payment of the tax levied under the Act. (2)
If a partnership is dissolved, every
person who was a partner shall send a report of dissolution to the Luxury Tax
Officer concerned within Fifteen days of such dissolution. If,
at any time, a proprietor or stockist. (a)
discontinues or sells or otherwise
disposes of the whole or any part of any business carried on by him; or (b)
changes his place of business or any
of his additional places of business; or (c)
opens a new place of business; or (d)
changes the name of any business
carried on by him, the
proprietor or stockist or if he is dead, his legal representative shall notify
the fact to the Luxury Tax Officer concerned within thirty days thereafter. Every
proprietor or stockist liable for registration, shall within Ninety days from
the date on which he becomes liable for registration, send to the Luxury Tax
Officer, a declaration in Form XI, stating the name/s of the person/s who
is/are authorised to sign the statements or returns under the Act on his behalf
or to make statements in any enquiry under the Act. All statements/returns
signed and so made over by such person/s shall be binding on the proprietor or stockist concerned and the declaration
furnished may be revised from time to time. Luxury
Tax Officer may require any person whose evidence he considers necessary for
the purpose of any enquiry under the Act or the Rules to appear before him and
give evidence and may examine such person on oath/affirmation. Luxury
Tax Officer shall have all the powers conferred on a Court by the Code of Civil
Procedure, 1908 (Central Act V of 1908), for the purposes of securing
attendance of persons or the production of documents. The
powers conferred on Luxury Tax Officer by Rules 22 and 23 may also be exercised
by an appellate or revising authority or by the Appellate Tribunal. Exercise
of powers specified in Section 15 shall be subject to the control and direction
of the Joint Commissioner of Commercial Taxes and the Commissioner of
Commercial Taxes. Luxury
Tax Officer or the authorities empowered in Rules 23 and 24 may issue summons
in Form XIV for the production of any documents or for the appearance of any
person. Where
a form has been prescribed by these rules for submission of statements or
returns, etc, only the appropriate form prescribed by these rules shall be used
for the purpose.] [96]PART II PROCEDURE
FOR RECOVERY OF TAX GENERAL PROVISIONS In
this part, unless the context otherwise requires. (a)
"Certificate" means a
certificate received by the Tax Recovery Officer under Rule 25-D; (b)
"Defaulter" means the
proprietor or stockist or any other person mentioned in the certificate; (c)
"Execution" in relation to a
certificate, means recovery of arrears in pursuance of the certificate; (d)
"Movable property" includes
growing crops; (e)
"Share in a corporation''
includes stock, debentures or bonds; (f)
"Tax Recovery Officer" means
the Luxury Tax Officer or any other officer exercising powers under clause (aa)
of sub-section (2) of Section 8 or under clause (aa) of sub-section (3) of
Section 13 of the Karnataka Sales Tax Act, 1957. (1)
Where a proprietor or stockist or any
other person is in default or is deemed to, be in default in making a payment
of tax or any other amount due under the Act, the Luxury Tax Officer may
forward to the Tax Recovery Officer a certificate in Form 40 under his
signature specifying the amount due from the proprietor or stockist or any
other person and the Tax Recovery Officer on receipt of such certificate, shall
proceed to recover from such proprietor or stockist or any other person the
amount specified therein in accordance with the provisions in this part. (2)
The Luxury Tax Officer may issue a
certificate under sub-rule (1) notwithstanding that proceedings for recovery of
the amount by any other mode has been taken. When
a certificate has been received by the Tax Recovery Officer from the Luxury Tax
Officer for the recovery of arrears, the Tax Recovery Officer shall cause to be
served upon the defaulter a notice in Form 41 requiring the defaulter to pay
the amount specified in the certificate within fifteen days from the date of
service of the notice and intimating that in default, steps would be taken to
realise the amount under this Part. No
step in execution of a certificate shall be taken until the period of fifteen
days has elapsed since the date of the service of the notice required by the
preceding rule: Provided
that, if the Tax Recovery Officer is satisfied that the defaulter is likely to
conceal, remove or dispose of the whole or any part of such of his movable
property as would be liable to attachment or destraint in execution of a decree
of a Civil Court and that the realisation of the amount of the certificate
would in consequence be delayed or obstructed, he may at any time for reasons
to be recorded in writing, attach or destraint the whole or any part of such
property: Provided
further that, if the defaulter whose property has been so attached or
distrained furnishes security to the satisfaction of the Tax Recovery Officer,
such attachment or destraint shall be cancelled from the date on which such
security is accepted by the Tax Recovery Officer. If
the amount mentioned in the notice is not paid within the time specified
therein or within such further time as the Tax Recovery Officer may grant in
his discretion, the Tax Recovery Officer shall proceed to realise the amount by
one or more of the following modes. (a)
by attachment or destraint and sale of
the defaulter's movable property; (b)
by attachment and sale of the
defaulter's immovable property. There
shall be recoverable in the proceedings in execution of every certificate. (a)
interest at the rate of seven per cent
per annum from the day commencing after the end of the period specified in Rule
25-E; (b)
all charges incurred in respect of. (i)
the service of notice upon the
defaulter to pay the arrears, and or warrants and other processes, and (ii)
all other proceedings taken for
realising the arrears. (1)
Where property is sold in execution of
a certificate, there shall vest in the purchaser merely the right, title and
interest of the defaulter at the time of the sale, even though the property
itself be specified. (2)
Where immovable property is sold in
execution of a certificate, and such sale has become absolute, the purchaser's
right, title and interest shall be deemed to have vested in him from the time
when the property is sold, and not from the time when the sale becomes
absolute. (1)
No suit shall be maintained against
any person claiming title under a purchase certified by the Tax Recovery
Officer in the manner laid down in this part on the ground that the purchase
was made on behalf of the plaintiff or on behalf of some one through whom the
plaintiff claims. (2)
Nothing in this rule shall bar a suit
to obtain a declaration that the name of any purchaser certified as aforesaid
was inserted in the certificate fraudulently or without the consent of the real
purchaser, or interfere with the right of a third person to proceed against
that property, though ostensibly sold to the certified purchaser, on the ground
that it is liable to satisfy a claim of such third person's against the real
owner. (1)
Whenever assets are realised, by sale
or otherwise in execution of a certificate, they shall be disposed of in the
following manner, (a)
there shall first be paid to the
Luxury Tax Officer or the Tax Recovery Officer the costs incurred by him; (b)
there shall, in the next place, be
paid to the Luxury Tax Officer the amount due under the certificate in
execution of which the assets were realised; (c)
if there remains a balance after these
sums have been paid, there shall be paid to the Luxury Tax Officer there from
any other amount recoverable under the procedure provided by the Act and these
rules which may due upon the date upon which the assets were realised; and (d)
the balance (if any) remaining after
the payment of the amount (if any) referred to in clause (c), shall be paid to
the defaulter, (2)
If defaulter disputes any claim made
by the Luxury Tax Officer to receive any amount referred to in clause (c), the
Tax Recovery Officer shall determine the dispute. Except
as otherwise expressly provided in the Act and these Rules every question
arising between the Luxury Tax Officer and the defaulter or their
representatives, relating to the execution, discharge or satisfaction of a
certificate or relating to the confirmation or setting aside of a sale held in
execution of such certificate shall be determined, not by suit, but by the
order of the Tax Recovery Officer before whom such question arises: Provided
that a suit may be brought in a Civil Court in respect of any such question
upon the ground of fraud. (1)
All such property as is by the Code of
Civil Procedure, 1908 (5 of 1908), exempted from attachment and sale in
execution of a decree of a Civil Court shall be exempt from attachment or
destraint and sale under this Part. (2)
The Tax Recovery Officer's decision as
to what property is so entitled to exemption shall be conclusive. (1)
Where any claim is preferred to, or
any objection is made to the attachment, destraint or sale of any property in
execution of a certificate, on the ground that such property is not liable to
such attachment, destraint or sale, the Tax Recovery Officer shall proceed to
investigate the claim or objection: Provided,
that no such investigation shall be made where the Tax Recovery Officer
considers that the claim or objection was designedly or unnecessarily delayed. (2)
Where the property to which the claim
or objection applies has been advertised for sale, the Tax Recovery Officer
ordering the sale may postpone it pending the investigation of the claim or
objection, upon such terms as to security or otherwise as the Tax Recovery
Officer shall deem fit. (3)
The claimant or objector must adduce
evidence to show that. (a)
in the case of immovable property, at
the date of the service of notice issued under this Part to pay the arrears; or (b)
in the case of movable property at the
date of the destraint or attachment he had some interest in, or was possessed
of, the property in question, (4)
Where, upon the said investigation,
the Tax Recovery Officer is satisfied that, for the reason stated in the claim
or objection, such property was not, at the said date, in the possession of the
defaulter or of some person in trust for him or that, being in the possession
of the defaulter at the said date, it was so in his possession, not on his own
account or as his own property, but on account of or in trust for some other
person, or partly on his own account and partly on account of some other
person, the Tax Recovery Officer shall make an order releasing the property,
wholly or to such extent as he thinks fit, from destraint or attachment or
sale. (5)
Where the Tax Recovery Officer is
satisfied that the property was, at the said date, in the possession of the
defaulter as his own property and not on account of any other person, or was in
the possession of some other person in trust for him, or in the occupancy of a
tenant or other person paying rent to him, the Tax Recovery Officer shall
disallow the claim. (6)
Where a claim or any objection is
preferred, the party against whom an order is made may institute a suit in a
Civil Court to establish the right which he claims to the property in dispute,
but subject to the result of such suit (if any), the order of the Tax Recovery
Officer shall be conclusive. Where. (a)
the amount due, with costs and all
charges and expenses resulting from attachment or destraint of any property or
incurred in order to hold a sale, are paid to the Tax Recovery Officer; or (b)
the certificate is cancelled, the attachment or destraint shall be deemed to be withdrawn
and in the case of immovable property, the withdrawal shall, if the defaulter
so desires, be proclaimed at his expense, and a copy of the proclamation shall
be affixed in the manner provided by this Part for a proclamation of sale of
immovable property. The
attachment or destraint and sale of movable property and the attachment and
sale of immovable property shall be made by the Tax Recovery Officer. Any
deficiency of price which may happen on a resale by reason of the purchaser's
default, and all expenses attending such resale, shall be certified by the Tax
Recovery Officer and shall, at the instance of either the Luxury Tax Officer or
the defaulter, be recoverable from the defaulting purchaser under the procedure
provided by this Part: Provided
that no such application shall be entertained unless filed within Fifteen days
from the date of resale. (1)
The Tax Recovery Officer may, in his
discretion, adjourn any sale hereunder to a specified day and hour. (2)
Where a sale of immovable property is
adjourned under sub-rule (1) for a longer period than one calendar month, a fresh
proclamation of the sale under this Part shall be made unless the defaulter
consents to waive it. (3)
Every sale shall be stopped if, before
the lot is knocked down, the arrears and costs (including the costs of the
sale) are tendered to the Tax Recovery Officer. (1)
Where a notice has been served on a
defaulter under Rule 25-E, the defaulter or his representative in interest
shall not be competent to mortgage, charge, lease or otherwise deal with any
property belonging to him except with the permission of the Tax Recovery
Officer, nor shall any Civil Court issue any process against such property in
execution of a decree for the payment of money. (2)
Where an attachment has been made
under this Part, any private transfer or delivery of the property attached or
of any interest therein and any payment to the defaulter of any debt, dividend
or other moneys contrary to such attachment, shall be void as against all
claims enforceable under the attachment. No
officer or other person having any duty to perform in connection with any sale
under this Part shall, either directly or indirectly, bid for, acquire or
attempt to acquire any interest in the property sold. No
sale under this Part shall take place on a Sunday or other general holidays
recognised by the State Government or any day which has been notified by the
State Government to be a local holiday for the area in which the sale is to
take place. The
Tax Recovery Officer may apply to the officer-in-charge of the nearest police
station for such assistance as may be necessary in the discharge of his duties,
and the authority to whom such application is made shall depute a sufficient
number of Police Officers for furnishing such assistance. Attachment or destraint and sale of movable property When
any movable property is to be attached or distrained, the Tax Recovery Officer
shall prepare a warrant under his signature in Form 42 specifying the name of
the defaulter and the amount to be realised and cause a copy of the warrant to
be served on the defaulter. If,
after service of the copy of the warrant, the amount is not paid forthwith the
Tax Recovery Officer shall proceed to attach or distrain the movable property
of the defaulter. Where
the property proceeded against is movable property (other than agricultural
produce) in the possession of the defaulter, it shall be distrained by actual
seizure, and the officer shall keep the property in his own custody or the
custody of one of his subordinates and shall be responsible for due custody
thereof: Provided
that when the property seized is subject to speedy and natural decay or when
the expense of keeping it in custody is likely to exceed its value, the officer
may sell it at once. Where
the property proceeded against is agricultural produce, it shall be attached by
affixing a copy of the warrant. (a)
Where such produce is growing crop on
the land on which such crop has grown; or (b)
Where such produce has been cut or
gathered on the threshing floor or place for treading out grain or the like, or
fodder-stack, on or in which it is deposited, and another copy on the outer door or on some other
conspicuous part of the house in which the defaulter ordinarily resides, or on
some other conspicuous part of the house in which he carries on business or
personally works for gain, or in which he is known to have last resided or
carried on business or personally worked for gain. The produce shall,
thereupon, be deemed to have passed into the possession of the Tax Recovery
Officer. (1)
Where agricultural produce is
distrained, the Tax Recovery Officer shall make such arrangements for the
custody, watching, tending, cutting and gathering thereof as he may deem
sufficient; and the Luxury Tax Officer shall bear such amount as the Tax Recovery
Officer shall require in order to defray the cost of such arrangements. (2)
Subject to such conditions as may be
imposed by the Tax Recovery Officer in this behalf, either in the order of
attachment or in any subsequent order, the defaulter may tend, cut, gather and
store the produce and do any other act necessary for maturing or preserving it
and, if the defaulter fails to do all or any such acts, any person appointed by
the Tax Recovery Officer in this behalf may, subject to the like conditions, do
all or any of such acts, and the costs incurred by such person shall be
recoverable from the defaulter as if they were included in the certificate. (3)
Agricultural produce attached as a
growing crop shall not be deemed to have ceased to be under attachment or to require
reattachment merely because it has been served from the soil. (4)
Where an order for the attachment of a
growing crop has been made at a considerable time before the crop is likely to
be fit to be cut or gathered, the Tax Recovery Officer may suspend the
execution of the order for such time as he thinks fit, and may, in his
discretion, make a further order prohibiting the removal of the crop pending
execution of the order of attachment. (5)
A growing crop which from its nature
does not admit of being stored shall not be attached under this Rule at any
time less than twenty days before the time at which it is likely to be fit to
be cut or gathered. (1)
In the case of. (a)
a debt not secured by a negotiable
instrument; (b)
a share in a corporation; or (c)
other movable property not in the
possession of the defaulter except property deposited in, or in the custody of
any Court. it
shall be attached and the attachment shall be made by a written order in Form
43 prohibiting. (i)
in the case of a debt, the creditor
from recovering the debt and the debtor from making payment thereof until the
further order of the Tax Recovery Officer; (ii)
in the case of a share, the person in
whose name the share may be standing from transferring the same or receiving
any dividend thereon; (iii)
in the case of any other movable
property (except as aforesaid), the person in possession of the same from
giving it over to the defaulter. (2)
A copy of such order shall be affixed
on some conspicuous part of the office of the Tax Recovery Officer, and another
copy shall be sent in the case of the debt, to the debtor, in the case of the
share, to the proper officer of the corporation and in the case of the other
movable property (except as aforesaid), to the person in possession of the
same. (3)
A debtor prohibited under clause (i)
of sub-rule (1) may pay the amount of his debt to the Tax Recovery Officer and
such payment shall discharge him as effectually as payment to the party
entitled to receive the same. (1)
Where the property proceeded against
is a decree of a Civil Court for the payment of money or for sale in
enforcement of a mortgage or charge it shall be attached and attachment shall
be made by the issue to the Civil Court of a notice in Form 44 requesting the
Civil Court to stay the execution of the decree unless and until. (i)
the Tax Recovery Officer cancels the
notice; or (ii)
the Luxury Tax Officer or the
defaulter applies to the Court Receiving such notice to execute the decree. (2)
Where a Civil Court receives an
application under clause (ii) of sub-rule (1), it shall, on the application of
the Luxury Tax Officer or the defaulter and subject to the provisions of the
Code of Civil Procedure, 1908 (5 of 1908), proceed to execute the attached decree,
and apply the net proceeds in satisfaction of the certificate. (3)
The Luxury Tax Officer shall be deemed
to be the representative of the holder of the attached decree, and to be
entitled to execute such attached decree in any manner lawful for the holder
thereof. Where
the property proceeded against consists of the share or interest of the
defaulter in movable property belonging to him and another as co-owner, it
shall be attached and the attachment shall be made by a notice in Form 45 to
the defaulter prohibiting him from transferring the share or interest or
charging it in any way. Where
the property is a negotiable instrument not deposited in a Court nor in the
custody of a public officer, it shall be distrained by the Tax Recovery
Officer. Where
the property proceeded against is in the custody of any Court or Public
Officer, it shall be attached and the attachment shall be made by a notice in
Form 46 to such Court or officer, requesting that such property, and any
interest or dividend -becoming payable thereon, may be held subject to the
further orders of the Tax Recovery Officer by whom the notice is issued: Provided
that, where such property is in the custody of a Court, any question of title
or priority arising between the Assessing Authority and any other person, not
being the defaulter, claiming to be interested in such property by virtue of
any assignment, attachment or otherwise shall be determined by such Court. (1)
Where the property proceeded against
consists of an interest of defaulter being a partner, in the partnership
property, the Tax Recovery Officer may make an order charging the share of such
partner in the partnership property and profits with payment of the amount due
under the certificate, and may, by the same or subsequent order, appoint a
receiver of the share of such partner in the profits, whether already declared
or accruing and of any other money which may become due to him in respect of
the partnership, and direct accounts and enquiries and make an order for the
sale of such interest or such other order as the circumstances of the case may
require. (2)
The other persons shall be at liberty
at any time to redeem the interest charged or, in the case of a sale being
directed to purchase the same. In
the case of destraint, the seizure shall not be excessive, that is to say, the
property seized shall be as nearly as possible proportionate to the amount
specified in the warrant In
the case of destraint of movable property by actual seizure, the Tax Recovery
Officer shall, after seizure of the property, prepare an inventory of all the
property attached, specifying in it the place where it is lodged or kept, and a
copy of the inventory shall be delivered to the defaulter. Attachment
by seizure shall be made after sun-rise and before sun-set and not otherwise. The
Tax Recovery Officer may break open any inner or outer door of any building and
enter any building in order to seize any movable property if he has reasonable
grounds to believe that such building contains movable property liable to
seizure under the warrant and he has notified his authority and intention of
breaking open if admission is not given. He shall however, give all reasonable
opportunity to women to withdraw. The
Tax Recovery Officer may direct that any movable property attached or
distrained under this Part or such portion thereof as may seem necessary to
satisfy the certificate shall be sold. When
any sale of movable property is ordered by the Tax Recovery Officer, the Tax
Recovery Officer shall issue a proclamation in Form 47 in the language of the
District, of the intended sale, specifying the time and place of sale and
whether the sale is subject to confirmation or not. (1)
Such proclamation shall be made by
beat of drum or other customary mode. (a)
in the case of property distrained. (i)
in the village in which the property
was seized or if the property was seized in a town or city, then in the
locality in which it was seized; and (ii)
at such other places as the Tax
Recovery Officer may direct; (b)
in the case of property attached
otherwise than destraint in such places, if any, as the Tax Recovery Officer
may direct, (2)
A copy of the proclamation shall also
be affixed in a conspicuous part of the office of the Tax Recovery Officer. Except
where the property is subject to speedy and natural decay or when the expense
of keeping it in custody is likely to exceed its value, no sale of movable
property under this Part shall, without the consent in writing of the
defaulter, take place until after the expiry of at least fifteen days calculated
from the date on which a copy of the sale proclamation was affixed in the
office of the Tax Recovery Officer. (1)
Where the property to be sold is
agricultural produce, the sale shall be held. (a)
if such produce is a growing crop. on
or near the land on which such crop has grown; or (b)
if such produce has been cut or
gathered. at
or near the threshing floor or place of treading out grain or like, or
fodder-stack, on or in which it is deposited: Provided
that the Tax Recovery Officer may direct that the sale to be held at the
nearest place of public resort, if he is of opinion that the produce is thereby
likely to sell to greater advantage. (2)
Where, on the produce being put up for
sale. (a)
a fair price, in the estimation of the
Tax Recovery Officer is not offered for it; and (b)
the owner of the produce, or a person
authorised to act on his behalf, applies to have the sale postponed till the
next day or, if a market is held at the place of sale, the next market day, the
sale shall be postponed accordingly, and shall be then completed, whatever
price may be offered for the produce. (1)
Where the property to be sold is a
growing crop and the crop from its nature admits of being stored but has not
yet been stored, the day of the sale shall be so fixed as to admit of the crop
being made ready for storing before the arrival of such day, and the sale shall
not be held until the crop has been cut or gathered and is ready for storing. (2)
Where the crop from its nature does
not admit of being stored or can be sold to a greater advantage in an unripe
stage (e.g., as green wheat), it may be sold before it is cut and gathered, and
the purchaser shall be entitled to enter on the land, and to do all that is
necessary for the purpose of tending or cutting or gathering the crop. The
property shall be sold by public auction in one or more lots as the Tax
Recovery Officer may consider advisable and if the amount to be realised by
sale is satisfied by the sale of a portion of the property the sale shall be
immediately stopped with respect to the remainder of the lots. (1)
Where movable property is sold by
public auction, the price of each lot shall be paid at the time of sale or as
soon after as the Tax Recovery Officer directs and in default of payment the
property shall forthwith be resold. (2)
On payment of the purchase money, the
Tax Recovery Officer shall grant a certificate specifying the property
purchased, the price paid and the name of the purchaser and the sale shall
become absolute. (3)
Where the movable property to be sold
is a share in goods belonging to the defaulter and a co-owner, and two or more persons,
of whom one is such co-owner, respectively bid the same sum for such property
or for any lot, the bidding shall be deemed to be the bidding of the co-owner, No
irregularity in publishing or conducting the sale of movable property shall
vitiate the sale, but any person sustaining substantial injury by reason of
such irregularity at the hands of any other person may institute a suit in a
Civil Court against him for compensation, or (if such other person is the
purchaser) for the recovery of the specific property and for compensation in
default of such recovery. Notwithstanding
anything contained in this Part, where the property to be sold is a negotiable
instrument or a share in a corporation the Tax Recovery Officer may, instead of
selling it by public auction, sell such instrument or share through a broker. Where
the property attached or distrained is current coin or currency notes, the Tax
Recovery Officer may, at any time during the continuance of the attachment or
distraint direct that such coin or notes, or a part thereof sufficient to
satisfy the certificate, be paid over to the Luxury Tax Officer. Attachment and sale of immovable property Attachment
of the immovable property of the defaulter shall be made by an order in Form 48
prohibiting the defaulter from transferring or charging the property in any way
and prohibiting all persons from taking any benefit under such transfer or
charge. A
copy of the order of attachment shall be served on the defaulter. The
order of attachment shall be proclaimed at some place on or adjacent to the
property attached by beat of drum or other customary mode and a copy of the
order shall be affixed on a conspicuous part of the property and on the notice
board of the office of the Tax Recovery Officer. Where
any immovable property is attached under this part, the attachment shall relate
back to, and take effect from, the date on which the notice to pay the arrears,
issued under this part was served upon the defaulter. (1)
The Tax Recovery Officer may direct
that any immovable property which has been attached or such portion thereof as
may seem necessary to satisfy the certificate, shall be sold. (2)
Where any immovable property is
ordered to be sold, the Tax Recovery Officer shall cause a proclamation in Form
47 of the intended sale to be made in the language of the district A
proclamation of sale- of immovable property shall be drawn after notice to the
defaulter, and shall state the time and place of sale and shall specify, as
fairly and accurately as possible. (a)
the property to be sold; (b)
the revenue, if any, assessed upon the
property or any part thereof; (c)
the amount for the recovery of which
the sale is ordered; and (d)
any other thing which the Tax Recovery
Officer considers it material for a purchaser to know, in order to judge the
nature and value of property. (1)
Every proclamation for the sale of
immovable property shall be made at some place on or near such property by beat
of drum or other customary mode, and a copy of proclamation shall be affixed on
a conspicuous part of the property and also upon a conspicuous part of the
office of the Tax Recovery Officer. (2)
Where the Tax Recovery Officer so
directs, such proclamation shall also be published in the Official Gazette or
in a local newspaper, or in both; and the cost of such publication shall be
deemed to be costs of the sale. (3)
Where the property is divided into
lots of the purpose of being sold separately, it shall not be necessary to make
a separate proclamation for each lot, unless proper notice of the sale cannot,
in the opinion of the Tax Recovery Officer, otherwise be given. No
sale of immovable property, under this Schedule shall, without the consent in
writing of the defaulter, take place until after the expiration of at least
thirty days calculated from the date on which a copy of the proclamation of
sale has been affixed on the property or in the office of the Tax Recovery
Officer, whichever is later. The
sale shall be by public auction to the highest bidder and shall be subject to
confirmation by the Tax Recovery Officer. (1)
On every sale of immovable property,
the person declared to be the purchaser shall pay, immediately after such
declaration, a deposit of twenty-five per cent of the amount of his purchase
money, to the Tax Recovery Officer and in default of such deposit, the property
shall forthwith be resold. (2)
The full amount of purchase money
payable shall be paid by the purchaser to the Tax Recovery Officer on or before
the Fifteenth day from the date of the sale of the property. In
default of payment within the period mentioned in the preceding rule, the
deposit may, if the Tax Recovery Officer thinks fit, after defraying the expenses
of the sale, be forfeited to the Government and the property shall be resold
and the defaulting purchaser shall forfeit all claims to the property or to any
part of the sum for which it may subsequently be sold. All
persons bidding at the sale shall be required to declare if they are bidding on
their own behalf or on behalf of their principals. In the latter case, they
shall be required to deposit their authority, and in default their bids shall
be rejected. (1)
Where immovable property has been sold
in execution of a certificate, the defaulter, or any person whose interests are
affected by the sale, may at any time within Thirty days from the date of the
sale, apply to the Tax Recovery Officer to set aside the sale, on his
depositing. (a)
for payment to the Luxury Tax Officer,
the amount specified in the proclamation of sale as that for the recovery of
which the sale was ordered, with interest thereon at the rate of six per cent
per annum calculated from the date of the proclamation of sale to the date when
the deposit is made; and (b)
for payment to the purchaser, as
penalty, a sum equal to five per cent of the purchase money but not less than
one rupee. (2)
Where a person makes an application
under Rule 25-BL, for setting aside the sale of his immovable property, he
shall not, unless he withdraws application, be entitled to make or prosecute an
application under this Rule. Where
immovable property has been sold in execution of a certificate, the Luxury Tax
Officer, the defaulter, or any person whose interests are affected by the sale,
may, at any time within Thirty days from the date of the sale, apply to the Tax
Recovery Officer to set aside the sale of the immovable property on the ground
that notice was not served on the defaulter to pay the arrears as required by
this Part or on the ground of a material irregularity in publishing or
conducting the sale: Provided
that. (a)
no sale shall be set aside on any such
ground unless the Tax Recovery Officer is satisfied that the applicant has
sustained substantial, injury by reason of the non-service or irregularity; and (b)
an application made by a defaulter
under this Rule shall be disallowed unless the applicant deposits the amount
recoverable from him in execution of the certificate. At
any time within Thirty days of the sale, the purchaser may apply to the Tax
Recovery Officer to set aside the sale on the ground that the defaulter had no
saleable interest in the property sold. (1)
Where no application is made for
setting aside the sale under the foregoing Rules or where such an application
is made and disallowed by the Tax Recovery Officer, the Tax Recovery Officer
shall (if the full amount of the purchase money has been paid) make an order confirming
the sale; and thereupon the sale shall become absolute. (2)
Where such application is made and
allowed and where, in the case of an application made to set aside the sale on
deposit of the amount and penalty and charges, the deposit is made within Thirty
days from the date of the sale, the Tax Recovery Officer shall make an order
setting aside the sale: Provided
that no order shall be made unless notice of the application has been given to
the person affected thereby. When
a sale of immovable property is set aside, any money paid or deposited by the
purchaser on account of the purchase, together with the penalty, if any,
deposited for payment to the purchaser, and such interest as the Tax Recovery
Officer may allow, shall be paid to the purchaser. (1)
Where a sale of immovable property has
become absolute, the Tax Recovery Officer shall grant a certificate in Form 49
specifying the property sold, and the name of the person who at the time of
sale is declared to be the purchaser. (2)
Such Certificate shall state the date
on which the sale became absolute. (1)
Where an order for the sale of
immovable property has been made, if the defaulter can satisfy the Tax Recovery
Officer that there is reason to believe that the amount of the certificate may
be raised by the mortgage or lease or private sale of such property, or some
part thereof, or of any other immovable property of the defaulter, the Tax
Recovery Officer may, on his application, postpone the sale of the property
comprised in the order for sale, on such terms and for such period as he thinks
proper, to enable him to raise the amount, (2)
In such case, the Tax Recovery Officer
shall grant a certificate to the defaulter, authorising him, within a period to
be mentioned therein, and notwithstanding anything contained in this part, to
make the proposed mortgage, lease or sale: Provided
that all moneys payable under such mortgage lease or sale shall be paid, not to
the defaulter, but to the Tax Recovery Officer; Provided
also that no mortgage, lease or sale under this Rule shall become absolute
until it has been confirmed by the Tax Recovery Officer. Every
resale of immovable property, in default of payment of the purchase money
within the period allowed for such payment, shall be made after the issue of a
fresh proclamation in the manner and for the period herein before provided for
the sale. When
the property sold is a share of undivided immovable property, and two or more
persons, of whom one is a co-sharer, respectively bid the same sum of such
property or for any lot, the bid shall be deemed to be the bid of the
co-sharer. Every
Tax Recovery Officer or other acting under this Part shall have the powers of
Civil Court while trying a suit for the purpose of receiving evidence
administering oaths, enforcing the attendance of witness and compelling the
production of documents. (1)
An appeal from any original order
passed by the Tax Recovery Officer under this Part not being an order which is
conclusive, shall lie. (a)
in the case of a Tax Recovery Officer,
being the Luxury Tax Officer to the authority to which appeals lie against the
orders of the Luxury Tax Officer under Section 9; and (b)
in any other case, to the Luxury Tax
Officer. (2)
Every appeal under this Rule must be
presented within Thirty days from the date of the order appealed against. (3)
Pending the decision of any appeal,
execution of the certificate may be stayed if the Appellate Authority so
directs, but not otherwise. Any
order passed under this Part may, after notice to all persons interested be
reviewed by the officer who made the order, or by his successor-in-office, on
account of any mistake apparent from the record. Where
any person has under this Part become surety for the amount due by the
defaulter, he may be proceeded against tinder this Part as if he were the
defaulter. Nothing
in this Part shall affect any provision of the Act where under the tax is a
first charge upon any asset] [1] Omitted by Notification No. FD 4 CLT 97, dated 25-9-1997,
w.e.f. 1-4-1997, for the followings:- "(Hotels, Lodging Houses and
Marriage Halls)". [2] Inserted by Notification No. FD 4 CLT 97, dated 25-9- 1997
w.e.f. 1-4-1997. [3] Omitted by Notification No. FD 4 CLT 97, dated 25-9-1997,
w.e.f. 1-4-1997, for the followings:- "(Hotels, Lodging Houses and
Marriage Halls)". [4] Omitted by Notification No. FD 4 CLT 97, dated 25-9-1997,
w.e.f. 1-4-1997, for the followings:- "(Hotels, Lodging Houses and
Marriage Halls)". [5] Inserted Clause (ab) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [6] Inserted Clause (cc) by GSR 131, Dated 7-3-1986, w.e.f.
6-5-1986. [7] Inserted Clause (cd) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [8] Inserted Rules 2-A to 2-D by GSR 131, Dated 7-3-1986,
w.e.f. 6-5-1986. [9] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [10] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "hotels and marriage halls". [11] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "one hotel". [12] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "hotels" [13] Inserted Sub-rule (3) by Notification No. FD4CLT97, dated
25-9-1997 w.e.f. 1-4-1997. [14] Inserted Rule 2-AA by Notification No. FD4 CLT97, dated
25-9-1997 w.e.f. 1-4-1997. [15] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "hotels" [16] Inserted by Notification No. BD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [17] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [18] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "hotel". [19] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [20] Substituted Proviso by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997. [21] Inserted by Notification No. FD 4 CLT 97, dated 25-94997
w.e.f. 1-4-1997. [22] Inserted Sub-rule (2-A) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [23] Substituted Sub-rule (3) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [24] Substituted by Notification. No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "hotel or marriage hall". [25] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [26] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [27] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form I-B". [28] Inserted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995. [29] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form I-BB". [30] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form II". [31] Inserted Clause (bb) by GSR 85, dated 13-7-1995 w.e.f.
1-4-1995. [32] Substituted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997, for the followings:- "Form II-A". [33] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "Form III". [34] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form III-B". [35] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form III-C". [36] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [37] Inserted Sub-rules (3) to (8) by Notification No. FD 4 CLT
97, dated 25-9-1997 w.e.f. 1-4-1997. [38] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "The proprietor shall submit a
return in Forms I-B, II and 111". [39] Substituted by Notification Mo. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Forms I-B, II and III". [40] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Forms I-BB and III-A". [41] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [42] Inserted Proviso by GSR 131, Dated 7-3-1986, w.e.f.
6-5-1986. [43] Inserted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995. [44] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "such hotel". [45] Inserted Sub-rule (2) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [46] Renumbered Sub-rules (2) and (3) as sub-rules (3)
and (4) by Notification No. FD 4 CLT 97f dated 25-9-1997 w.e.f., 1-4-1997. [47] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [48] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [49] Inserted Rule 4-A by GSR 85, dated 13-7-1995 w.e.f.
1-4-1995. [50] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form II-AA". [51] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [52] Renumbered Rule 5 as sub-rule (1) thereof by Notification
No. FD4 CLT 97; dated 25-9-1997 w.e.f. 1-4-1997. [53] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "accommodation". [54] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "guest". [55] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "hotel". [56] Inserted Sub-rule (2) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [57] Inserted Rules 5-A to 5-C by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [58] Substituted Rule 6 by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997. [59] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Refund of Luxury Tax". [60] Renumbered Rule 8 as sub-rule (1) thereof by Notification
No. FD4 CLT 97, dated 25-9-1997 w.e.f. 1-4-1997. [61] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "month". [62] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [63] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f., 1-4-1997. [64] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [65] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [66] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Form VIII". [67] Inserted Rules 5-A to 5-C by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [68] Inserted Rule 8-A by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997. [69] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "Deputy Commissioner of
Commercial Taxes". [70] Substituted Rule 10 by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997. [71] Inserted Rules 10-A to 10-F by Notification No. FD 4 CLT
97, dated 25-9-1997 w.e.f. 1-4-1997. [72] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [73] Substituted Rule 12 by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997. [74] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "a hotel". [75] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [76] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [77] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [78] Substituted by GSR 225 dated 14-10-1981, w.e.f.
16-10-1981, for the followings:- "challan for having paid". [79] Substituted Sub-rule (1) by GSR 225, dated 14-10-1981,
w.e.f. 16-10-1981. [80] Substituted by GSR 85, dated 13-7-1995 w.e.f. 1-4-1995,
for the followings:- "hotel". [81] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [82] Inserted Clause (iii) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [83] Inserted Sub-rule (1-A) by Notification No. FD 4 CLT 97,
dated 25-9-1997 w.e.f. 1-4-1997. [84] Inserted Sub-rule (2) by GSR 225, Dated 14-104981, w.e.f.
16-04.1981. [85] Substituted by Act 10 of 1986, for the followings:- "Deputy Commissioner". [86] Renumbered Sub-rule (2) as sub-rule (3) thereof by GSR
225, dated 14404981, w.e.f. 16.04.1981. [87] Inserted by Notification No. FD 4 CLT 97, dated 25-94997
w.e.f. 1-4-1997. [88] Inserted Rule 17 by GSR 131, dated 7-34986, w.e.f.
6-54986. [89] Inserted by Notification No. FD 4 CLT 97, dated 25-94997
w.e.f. 1-44997. [90] Substituted by GSR 85, dated 13-74995 w.e.f. 1-4- 1995,
for the followings:- "Section 4-A". [91] Substituted by Notification No. FD 4 CLT 97, dated
25-9-1997 w.e.f. 1-4-1997, for the followings:- "or Section 4-A". [92] Substituted by GSR 85, dated 13-74995 w.e.f. 1-4-1995, for
the followings:- "hotel". [93] Substituted by Notification No. FD 4 CLT 97, dated
25-94997 w.e.f. 1-4-1997, for the followings:- "or marriage hall". [94] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997
w.e.f. 1-4-1997. [95] Inserted Rules 18, 19, 20, 21, 22, 23, 24, 25, 25-A and
25-B by Notification No. FD 4 CLT 97, dated 25-9-1997 w.e.f. 1-4-1997. [96] Inserted by Notification No. FD 4 CLT 97, dated 25-9-1997,
w.e.f. 1-4-1997.KARNATAKA TAX ON LUXURIES RULES, 1979
PREAMBLE