(1) In this Act, unless the context otherwise requires,--
(a) "agriculture" with its grammatical variations includes horticulture, the raising of crops, grass or garden produce and grazing but does not include dairy farming, poultry farming, stock breeding and mere cutting of wood;
(b) "agriculturist" means a person who cultivates land personally;
(c) "agricultural produce or horticultural produce" shall not be deemed to include tea, 1 [beedi leaves, raw cashew, timber, wood, tamarind] 2 [and such produce 3 [except coffee] as has been subject to any physical, chemical or other process for being made fit for consumption, save mere cleaning, grading, sorting or drying;]
(d) "Appellate Tribunal" means 4 [the Karnataka Appellate Tribunal constituted under the Karnataka Appellate Tribunal Act, 1976;]
(e) "assessee" means a person by whom a tax is payable;
5 [(f) "assessing authority" means an 6 [Commercial Tax Officer] or 6 [Assistant Commissioner of Commercial Taxes] or any other officer of the Commercial Taxes Department authorised to make any assessment by or under this Act;]
7 [8 [(f-1)]["Deputy Commissioner"] means any person appointed to be an 6 [Deputy Commissioner of Commercial Taxes] under section 3;]
9 [(f-1a) "body corporate" means a corporation, a company as defined under the Companies Act, 1956 (Central Act 1 of 1956) and a Company incorporated outside India but does not include,--
(i) a corporation sole;
(ii) a co-operative society registered under any law relating to cooperative societies; and
(iii) any other body corporate, not being a company as defined in the Companies Act, 1956, which the State Government may, by notification in the official Gazette, specify in this behalf.]
10 [(f-1b) "Brand name" means a name or trade mark registered under the Trade and Merchandise Marks Act, 1958 (Central Act 43 of 1958);]
11 [12 [(f-2) 'business' includes,--
(i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and
(ii) any transaction in connection with, or incidental or ancillary to such trade, commerce, manufacture, adventure or concern;]
(f-3) "casual trader" means a person who has, whether as principal, agent or in any other capacity, occasional transactions of a business nature involving the buying, selling, supply or distribution of goods in the State, whether for cash or for deferred payment, or for commission, remuneration, or other valuable consideration;]
(g) "Commissioner" means any person appointed to be a Commissioner of Commercial Taxes under section 3;
(h) "6 [Assistant Commissioner of Commercial Taxes]" or "6 [Commercial Tax Officer]" means any person appointed to be a 6 [Assistant Commissioner of Commercial Taxes] or 6 [Commercial Tax Officer] respectively under section 3;
13 [(h-1) "Company" shall have the meaning assigned to it in the Companies Act, 1956 (Central Act 1 of 1956);]
(i) "to cultivate" with its grammatical variations and cognate expressions means to carry on any agricultural operation;
(j) "to cultivate personally" means to cultivate on one's own account,-
(i) by one's own labour, or
(ii) by the labour of one's own family, or
(iii) by servants on wages payable in cash or kind but not in crop share, or by hired labour under one's personal supervision or the personal supervision of any member of one's family;
Explanation I.-- A person who is a widow or a minor or is subject to any physical or mental disability shall be deemed to cultivate the land personally if it is cultivated by her or his servants or by hired labour.
Explanation II.--In the case of undivided family, the land shall be deemed to have been cultivated personally, if it is cultivated by any member of such family.
14 [(k) "dealer" means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash or for deferred payment, or for commission, remuneration or other valuable consideration, and includes,--
(i) 15 [an industrial, commercial or trading undertaking of the 16 [Government of Karnataka], the Central Government, a State Government of any State, other than the 16 [State of Karnataka]], a local authority, company, a Hindu undivided family, an Aliyasanthana family, a firm, a society, a club or an association which carries on such business;
(ii) a casual trader;
(iii) a commission agent, a broker or del credere agent or an auctioneer or any other mercantile agent by whatever name called, who carries on the business of buying, selling, supplying, or distributing goods on behalf of any principal;
(iv) a non-resident dealer or an agent of a non-resident dealer, a local branch of a firm or company or association situated outside the State;
(v) a person who sells goods produced by him by manufacture or otherwise; 17 [(vi) a miller who carries on such business;]
18 [(vii) a person engaged in the business of transfer otherwise than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration;
(viii) a person engaged in the business of transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(ix) a person engaged in the business of delivery of goods on hire purchase or any system of payment by instalments;
(x) a person engaged in the business of transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration.]
19 [Explanation 1].--A society (including a co-operative society), club or firm or an association which, whether or not in the course of business, buys, sells, supplies or distributes goods from or to its members for cash, or for deferred payment or for commission, remuneration or other valuable consideration, shall be deemed to be a dealer for the purposes of this Act;
20 [Explanation 2.--The Central Government or 21 [a State Government or a local authority or a statutory body] which whether or not, in the course of business, buy, sell, supply or distribute goods, directly or otherwise, for cash or deferred payment or for commission, remuneration or other valuable consideration shall be deemed to be a dealer for the purposes of this Act;]
9 [Explanation 3.--In respect of the transfer of the right to use feature films, the person who transfers such right to the exhibitor and from whom the exhibitor derives the right to make such use shall be deemed to be the dealer under this clause;]
Exception.-- An agriculturist who sells exclusively agricultural produce grown on land cultivated by him personally 22 [or a person who is exclusively engaged in poultry farming and sells the products of such poultry farm] shall not be deemed to be a dealer within the meaning of this clause:]
13 [Provided that where the agriculturist is a company 23 [x x x] and is selling pepper, 24 [cardamom, rubber 1 [timber, wood, raw cashew] or coffee] grown on land cultivated by it personally, directly or otherwise, such company 23 [x x x] shall be deemed to be a dealer in respect of turnovers relating to sales of such produce.]
(l) "6 [Joint Commissioner]" means any person appointed to be a 6 [Joint Commissioner] of Commercial Taxes under section 3;
14 [(m) "goods" means all kinds of movable property (other than newspapers, actionable claims, stocks and shares and securities) and includes livestock, all materials, commodities, and articles 4 [(including goods, as goods or in some other form involved in the execution of a works contract or those goods to be used in the fitting out, improvement or repair of movable property)] and all growing crops, grass or things attached to, or forming part of the land which are agreed to be severed before sale or under the contract of sale;]
2 [(m-1) "goods vehicle" means any kind of vehicle used for carriage of goods either solely or in addition to passengers (other than aeroplanes and rail coaches) and includes push cart, animal drawn cart, tractor-trailer and the like;]
25 [26 [(m-2)] "6 [Additional Commissioner]" means any person appointed to be a 6 [Additional Commissioner] of Commercial Taxes under section 3;]
27 [(n) x x x]
28 [(o) x x x]
29 [(o-1) "miller" means a person who engages himself in rice milling operations in a rice mill or in causing operations in an oil mill 20 [or in a saw mill] or in dehusking in a decorticating 4 [factory or ginning and pressing operation in a ginning factory 30 [curing of coffee seeds in a coffee curing works] and includes a person] who, or the authority which, has the ultimate control over the affairs of 4 [such mill or such factory] 30 [or such works] and when the said affairs are entrusted to a manager, managing director or managing agent, such manager, managing director or managing agent;
Explanation.--For the purpose of this clause,--
(i) "rice mill" means the plant and machinery with which, and the premises including the precincts thereof in which or in any part of which, rice milling operation is carried on;
(ii) "oil mill" means the plant and machinery with which oil is extracted from oil seeds; 31 [x x x]
20 [(iii) "saw mill" means the plant and machinery with which and the premises including the precincts thereof in which or in any part of which, sawing operation is carried on;
32 [x x x]]
[(iiia) "Coffee curing works" means the plant and machinery with which and the premises including the precincts thereof in which or in any part of which, curing of coffee seeds is carried on.]
33 [(iv)] "decorticating factory" means any machinery with which the groundnut seeds are separated from groundnuts (with husk);] 18 [and]
18 [(v) "ginning factory" means the plant and machinery with which cotton is ginned and pressed into bales.]
(p) "notification" means a notification published in the Official Gazette;
14 [(q) "place of business" means any place where a dealer purchases or sells goods and includes,--
(i) any warehouse, godown or other place where a dealer stores or processes his goods;
(ii) any place where a dealer produces or manufactures goods;
(iii) any place where a dealer keeps his books of account;
(iv) in any case where a dealer carries on business through an agent (by whatever name called), the place of business of such agent;]
(r) "prescribed" means prescribed by rules made under this Act;
(s) "registered dealer" means a dealer registered under this Act;
14 [(t) "sale" with all its grammatical variations and cognate expressions means every transfer of the property in goods 18 [(other than by way of a mortgage, hypothecation, charge or pledge)] by one person to another in the course of trade or business for cash or for deferred payment or other valuable consideration, 4 [and includes,--
34 [(i) a transfer otherwise than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration;]
(ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;
(iii) a delivery of goods on hire purchase or any system of payment by instalments.
(iv) a transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;]
Explanation 1.--A transfer of property involved in the supply or distribution of goods by a society (including a co-operative society), club, firm or any association to its members, for cash, or for deferred payment or other valuable consideration, whether or not in the course of business, shall be deemed to be a sale for the purposes of this Act.
35 [Explanation 2.-- x x x]
Explanation 3.--
(a) The sale or purchase of goods 35 [other than in the course of inter-State trade or commerce or in the course of import or export] shall be deemed, for the purposes of this Act, to have taken place in the State wherever the contract of sale or purchase might have been made, if the goods are within the State,--
(i) in the case of specific or ascertained goods, at the time the contract of sale or purchase is made; and
(ii) in the case of unascertained or future goods, at the time of their appropriation to the contract of sale or purchase by the seller or by the purchaser, whether the assent of the other party is prior or subsequent to such appropriation.
(b) where there is a single contract of sale or purchase of goods situated at more places than one, the provisions of clause (a) shall apply as if there were separate contracts in respect of the goods at each of such places.
18 [(c) Notwithstanding anything contained in the Sale of Goods Act, 1930 (Central Act 3 of 1930), for the purpose of this Act, the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract shall be deemed to have taken place in the State, if the goods are within the State at the time of such transfer, irrespective of the place where the agreement for works contract is made, whether the assent of the other party is prior or subsequent to such transfer;
(d) Notwithstanding anything contained in the Sale of Goods Act, 1930 (Central Act 3 of 1930), for the purpose of this Act, the transfer of the right to use any goods for any purpose (whether or not for a specified period) shall be deemed to have taken place in the State, if such goods are for use within the State, irrespective of the place where the contract of transfer of the right to use the goods is made.]
37 [Explanation 3-A.--Every transaction of supply by way of or as a part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is for cash, deferred payment or other valuable consideration, shall be deemed to be a sale of those goods by the person making the supply and purchase of those goods by the person to whom such supply is made;]
Explanation 4.--Notwithstanding anything to the contrary contained in this Act or any other law for the time being in force, two independent sales or purchases shall, for the purposes of this Act, be deemed to have taken place,--
(a) when the goods are transferred from a principal to his selling agent and from the selling agent to the purchaser, or
(b) when the goods are transferred from the seller to a buying agent and from the buying agent to his principal, if the agent is found in either of the cases aforesaid,--
(i) to have sold the goods at one rate and to have passed on the sale proceeds to his principal at another rate, or
(ii) to have purchased the goods at one rate and to have passed them on to his principal at another rate, or
(iii) not to have accounted to his principal for the entire collections or deductions made by him in the sales or purchases effected by him on behalf of his principal, or
(iv) to have acted for a fictitious or non-existent principal;]
38 [Explanation 4-A.--Every transfer of property in goods by the Central Government, any State Government, a statutory body or a local authority for cash or for deferred payment or other valuable consideration, whether or not in the course of business, shall be deemed to be a sale for the purposes of this Act.]
39 [Explanation 5.-x x x]
29 [(t-1) "State Representative" means any person appointed to be the State Representative under section 3;] 22 [and includes an officer empowered by the Commissioner under section 3 to perform the functions of a State Representative;]
(u) "tax" means a tax leviable under the provisions of this Act;
11 [(u-1) "taxable turnover" means the turnover on which a dealer shall be liable to pay tax as determined after making such deductions from his total turnover and in such manner as may be prescribed, but shall not include the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India;
(u-2) "total turnover" means the aggregate turnover in all goods of a dealer at all places of business in the State, whether or not the whole or any portion of such turnover is liable to tax, including the turnover of purchase or sale in the course of inter-State trade or commerce or in the course of export of the goods out of the territory of India or in the course of import of the goods into the territory of India;]
(v) "turnover" means the aggregate amount for which goods are bought or sold, or supplied or distributed 18 [or delivered or otherwise disposed of in any of the ways referred to in clause (t)] by a dealer, either directly or through another, on his own account or on account of others, whether for cash or for deferred payment or other valuable consideration;
40 [Proviso x x x]
Explanation.--Subject to such conditions and restrictions, if any, as may be prescribed, in this behalf--
35 [(i) x x x]
(ii) the amount for which goods are sold include any sums charged for anything done by the dealer in respect of the goods sold at the time of or before the delivery thereof;
41 [(iii) x x x]
(iv) where for accommodating a particular customer, a dealer obtains goods from another dealer and immediately disposes of the same to the said customer, the sale in respect of such goods shall be included in the turnover of the latter dealer but not in that of the former;
18 [(v-i) "works contract" includes any agreement for carrying out for cash, deferred payment or other valuable consideration, the building, construction, manufacture, processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any movable or immovable property;]
42 [(w) x x x]
43 [(x) "year" means the year commencing on the first day of April.]
(2) The 16 [Karnataka] General Clauses Act, 1899 (16 [Karnataka] Act III of 1899), shall apply for the interpretation of this Act as it applies for the interpretation of a 16 [Karnataka] Act.
________________________________
1. Inserted by Act 4 of 1999 w.e.f. 1.4.1999.
2. Inserted by Act 23 of 1983 w.e.f. 18.11.1983.
3. Inserted by Act 16 of 1989 w.e.f. 18.10.1983.
4. Substituted by Act 27 of 1985 w.e.f. 1.8.1985.
5. Substituted by Act 9 of 1964 w.e.f. 1.4.1964, by Notification. Text of notification is at p. 429.
6. Substituted by Act 5 of 1993 w.e.f. 9.11.1992.
7. Inserted by Act 29 of 1961 w.e.f. 7.12.1961.
8. Re-lettered by Act 9 of 1964 w.e.f. 1.4.1964.
9. Inserted by Act 14 of 1987 w.e.f. 1.4.1987.
10. Inserted by Act 4 of 1992 w.e.f. 1.4.1992 & substituted by Act 5 of 2000 w.e.f. 1.4.2000.
11. Inserted by Act 9 of 1964 w.e.f. 1.4.1964.
12. Substituted by Act 17 of 1976 w.e.f. 1.4.1976.
13. Inserted by Act 15 of 1991 w.e.f. 1.4.1991.
14. Substituted by Act 9 of 1964 w.e.f. 1.4.1964.
15. Substituted by Act 7 of 1966 w.e.f. 1.4.1966.
16. Adapted by the Karnataka Adaptations of Laws Order, 1973 w.e.f. 1.11.1973.
17. Inserted by Act 13 of 1982 w.e.f. 1.4.1982.
18. Inserted by Act 27 of 1985 w.e.f. 1.8.1985.
19. Renumbered by Act 17 of 1976 w.e.f. 1.4.1976.
20. Inserted by Act 17 of 1976 w.e.f. 1.4.1976.
21. Substituted by Act 4 of 1992 w.e.f. 1.4.1992.
22. Inserted by Act 36 of 1986 w.e.f. 8.10.1986.
23. Inserted by the Act 6 of 1995 and omitted by Act 1 of 1996 w.e.f. 1.4.1995.
24. Substituted by Act 18 of 1994 w.e.f. 1.4.1994.
25. Inserted by Act 10 of 1983 w.e.f. 1.4.1983.
26. Re-numbered as (m-2) by Act 23 of 1983 w.e.f. 18.11.1983.
27. Omitted by Act 29 of 1961 w.e.f. 7.12.1961.
28. Omitted by Act 9 of 1986 w.e.f. 1.4.1986.
29. Inserted by Act 9 of 1970 w.e.f. 1.4.1970.
30. Inserted by Act 3 of 1998 w.e.f. 1.4.1998.
31. Omitted by Act 17 of 1976 w.e.f. 1.4.1976.
32. Omitted by Act 27 of 1985 w.e.f. 1.8.1985.
33. Re-numbered by Act 17 of 1976 w.e.f. 1.4.1976.
34. Clause (i) brought into force by Act 14 of 1987 w.e.f. 2.2.1983.
35. Omitted by Act 7 of 1966 w.e.f. 1.4.1966.
36. Inserted by Act 9 of 1986 w.e.f. 1.4.1986.
37. Inserted by Act 23 of 1983 w.e.f. 1.10.1957
38. Inserted by Act 4 of 1992 w.e.f. 1.4.1992.
39. Inserted by Act 10 of 1983 w.e.f. 2.2.1983 & omitted by Act 23 of 1983 w.e.f. 2.2.1983.
40. Proviso Inserted by Act 23 of 1983 w.e.f. 18.11.1983 & omitted by Act 7 of 1997 and Act 3 of 1998 w.e.f. 1.4.1994.
41. Omitted by Act 23 of 1983 w.e.f. 18.11.1983.
42. Omitted by Act 9 of 1964 w.e.f. 1.4.1964.
43. Substituted by Act 15 of 1988 w.e.f. 1.4.1989.