Karnataka Value Added Tax Act, 2003 Chapter VII - Bare Act |
| State | Karnataka Government |
| Year | 2003 |
| Section Title | Appeals and Revision |
(1) Any person objecting to any order or proceedings affecting him passed under the provisions of this Act by the prescribed authority may appeal to the prescribed appellate authority.
(2) The appeal shall be preferred,
(a) in respect of an order of assessment, within thirty days from the date on which the notice of assessment, was served on the appellant, and
(b) in respect of 3[any other order or proceedings] within thirty days from the date on which the order was communicated to the appellant:
(3) The appellate authority may admit an appeal preferred after the period as aforesaid but within a further period of one hundred and eighty days, if it is satisfied that the appellant had sufficient cause for not preferring the appeal within that period.
(4) (a) No appeal against an order of assessment shall be entertained by the appellate authority unless it is accompanied by satisfactory proof of the payment of tax and penalty not disputed in the appeal.
(b) The tax or other amount shall be paid in accordance with the order 4[or proceedings] against which an appeal has been preferred.
1[(c) (i) The appellate authority may, in its discretion, stay payment of one half of tax, if the appellant makes payment of the other half of the tax along with the prescribed form of appeal.
(ii) Where any application made by an applicant for staying proceedings of recovery of any tax or other amount has not been disposed of by the appellate Authority within a period of thirty days from the date of such application, it shall be deemed that the Appellate Authority has made an order staying proceedings of recovery of such tax or other amount subject to payment of one half of the tax disputed and furnishing of sufficient security to the satisfaction of the Assessing Authority in regard to the other half of such tax or amount within a further period of fifteen days.] .
(d) Where an order staying proceedings of recovery of any tax or other amount is passed in any proceedings relating to an appeal under sub-section (1), the appellate authority shall dispose of the appeal within a period of one hundred twenty days from the date of such order.
(e) If such appeal is not so disposed of within the period specified in clause (d), the order of stay shall stand vacated after the expiry of the said period 2[and the Appellate Authority shall not make any further order staying proceedings of recovery of the said tax or other amount.]
(5) The appeal shall be in the prescribed form and shall be verified in the prescribed manner.
(6) In disposing of an appeal, the appellate authority may, after giving the appellant a reasonable opportunity of being heard,
(a) in the case of an order of assessment or penalty:
(i) confirm, reduce or enhance the assessment including any part thereof whether or not such part is objected to in the appeal;
(ii) pass such other orders as it may think fit; and
(b) in the case of any other order, 4[or proceedings] confirm, cancel or vary such order.
2[(6-A) (i) In disposing of an appeal before it, the appellate authority shall not remand the case to make fresh assessment or fresh order, but shall proceed to dispose of the appeal on its merit, as it deems fit, if necessary by taking additional evidence.
5[(ii) The appellate authority shall pass an order by disposing of an appeal, within a period of ninety days from the date on which the hearing of the case was concluded.]
(7) Every order passed on appeal under this Section shall, subject to the provisions of Sections 63 to 67, be final.
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1. Substituted by Karnataka Value Added Tax (Amendment) Act, 2005
2. Inserted by Karnataka Value Added Tax (Amendment) Act, 2005.
3. Substituted by Act 6 of 2007 w.e.f. 1.4.2007.
"any other order,"
4. Inserted by Act 6 of 2007 w.e.f. 1.4.2007.
5. Substituted by the Karnataka Value Added Tax ( Amendment) Act, 2009 for the following : -
"(ii) The appellate authority shall pass an order disposing of an appeal, within a period of thirty days from the date on which the hearing of the case was concluded and where it is not practicable so to do on the ground of the exceptional and extraordinary circumstances of the case, the Appellate Authority shall fix a future date for passing the order, and such day shall not be a day beyond sixty days from the date on which the hearing of the case was concluded, and due notice of the day so fixed shall be given to the appellant.]"
(1) Any officer 4[empowered by the State Government or the Commissioner] in this behalf or any other personobjecting to an order passed by the appellate authority under Section 62 5[or the Joint Commissioner under section 63-A] may appeal to the Appellate Tribunal within a period of sixty days from the date onwhich the order was communicated to him.
(2) The Appellate Tribunal may admit an appeal preferred after the period of sixty days referred to in sub-section (1), but within a further period of one hundredand eighty days, if it is satisfied that the appellant had sufficient cause fornot preferring the appeal within that period.
(3) The officer authorized under sub-section (1) or the person against whom an appeal has been preferred, as the case may be, on receipt of notice that an appeal against the order of the appellate authority has been preferred under sub-section (1) by the other party, may, notwithstanding that he has not appealed against such order or any part thereof, file, at any time before the appeal is finally heard, a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the appellate authority, and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (1).
(4) The appeal, or the memorandum of cross-objections, shall be in the prescribed form, shall be verified in the prescribed manner, and, in the case of an appeal preferred by any person other than an officer 6[empowered by the State Government or the Commissioner] under sub-section (1) shall be accompanied by 1[proof of payment of one half of tax or other amount disputed and also] a fee equal to two percent of the amount of assessment objected to, provided that the sum payable in no case be less than two hundred rupees or more than one thousand rupees.
(5) (a) The Appellate Tribunal shall, after giving both parties to the appeal areasonable opportunity of being heard, pass such orders thereon as it thinks fit.
(b) If the appeal involves a question of law on which the Appellate Tribunal haspreviously given its decision in another appeal and either a revision petitionin the High Court against such decision or an appeal in the Supreme Courtagainst the order of the High Court thereon is pending, the Appellate Tribunalmay defer the hearing of the appeal before it till such revision petition in the High Court or the appeal in the Supreme Court is disposed of.
(c) If as a result of the appeal any change becomes necessary in the assessment, which is the subject matter of the appeal, the Appellate Tribunal may authorizethe prescribed authority to amend the assessment, and the prescribed authority shall amend the assessment accordingly and thereupon, any amount over paid bythe dealer shall be refunded to him without interest, or any additional amount of tax due from him shall be collected in accordance with the provisions of theAct, as the case may be.
(6) (a) Notwithstanding that an appeal has been preferred under sub-section (1), tax shall be paid in accordance with the assessment made in the case.
(b) 2[****]
3[(7)(a)The Appellate Tribunal may, in its discretion, stay payment of one half of thetax or other amount disputed, if the appellant makes payment of the other halfof the tax or other amount disputed along with the prescribed form of appeal.
(b) The Appellate Tribunal shall dispose of such appeal within a period of onehundred eighty days from the date of the order staying proceedings of recoveryof one half of tax or other amount and, if such appeal is not so disposed ofwithin the period specified, the order of stay shall stand vacated after thesaid period and the Appellate Tribunal shall not make any further order stayingproceedings of recovery of the said tax or other amount.]
(8)(a) The Appellate Tribunal may, on the application either of the appellant or ofthe respondent, review any order passed by it under sub-section (5) on the basisof facts which were not before it when it passed the order.
(b) No such application under clause (a) shall be preferred more than once inrespect of the same order.
(c) The application for review shall be preferred in the prescribed manner withinsix months from the date on which the order to which the application relates wascommunicated to the applicant; and where the application is preferred by anyperson other than an officer empowered by the State Government under sub-section(1), it shall be accompanied by a fee equal to that which has been paid inrespect of the appeal.
(d) If the application for review is preferred within ninety days from the date onwhich the order to which the application relates is communicated to theapplicant, the application shall be accompanied by half the fee which had beenpaid in respect of the appeal.
(9) (a) With a view to rectifying any mistake apparent from the record, theappellate Tribunal may, at any time, within five years from the date of anyorder passed by it under sub-section (5) or sub-section (8), amend such order.
(b) No order under this sub-section shall be made without giving both partiesaffected by the order a reasonable opportunity of being heard.
(10) Except as provided in the rules, the Appellate Tribunal shall not have powers toaward costs to either of the parties to the appeal or review.
(11) Every order passed by the Appellate Tribunal under sub-section (5) or (8) or (9)shall be communicated to the appellant, the respondent, the appellate authorityon whose order the appeal was preferred and the Commissioner.
(12) Every order passed by the Appellate Tribunal under sub-section (5) shall,subject to the provisions of sub-section (8), sub-section (9) and Section 65, befinal and every order passed by it under sub-section (8) shall, subject to theprovisions of sub-section (9) and Section 65, be final.
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1. Inserted by Karnataka Value Added Tax (Amendment) Act, 2005.
2. Omitted by Karnataka Value Added Tax (Amendment) Act, 2005.
3. Substituted by Karnataka Value Added Tax (Amendment) Act, 2005
4. Substituted by Act 6 of 2007 w.e.f. 1.4.2006.
"empowered by the Government."
5. Inserted by Act of 10 of 2008 w.e.f 1.8.2008.
6. Subsituted by Act 6 of 2007 w.e.f. 1.4.2006.
"empowered by the Government"
1[(1) The Joint Commissioner may on his own motion call for and examine the record of any order passed or proceeding recorded under this Act and if he considers that any order passed therein by any officer, who is not above the rank of a Deputy Commissioner, is erroneous in so far as it is prejudicial to the interest of the revenue, he may, if necessary, stay the operation of such order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or canceling the assessment or directing a fresh assessment.
(2) The Joint Commissioner shall not exercise any power under this section, if.-
(a) the time for appeal against the order has not expired; or
(b) more than four years have expired after the passing of the order sought to be revised.
(3) The Joint Commissioner shall pass order under this section within a period of one year from the date of initiation of proceeding or calling for the records under this section, as the case may be.
(4) Every order passed in revision under this section shall, subject to the provisions of sections 63 and 64 be final.
(5) In computing the period of limitation for the purpose of sub-section (2), any period, during which any proceeding under this Section is stayed by an order or injunction of any court, shall be excluded.
(6) For the purposes of this Section, 'record' shall include all records relating to any proceedings under this Act available at the time of examination by the Joint Commissioner.]
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1. Inserted by Act 4 of 2006 w.e.f. 1.4.2006.
(1) The Additional Commissioner may on his own motion call for and examine therecord of any order passed or proceeding recorded under this Act and if heconsiders that any order passed therein by any officer, who is not above therank of a Joint Commissioner, is erroneous in so far as it is prejudicial to theinterest of the revenue, he may, if necessary, stay the operation of such orderfor such period as he deems fit and after giving the person concerned anopportunity of being heard and after making or causing to be made such inquiryas he deems necessary, pass such order thereon as the circumstances of the casejustify, including an order enhancing or modifying the assessment, or cancelingthe assessment or directing a fresh assessment.
(2) The Commissioner may on his own motion call for and examine the record of anyproceeding under this Act, and if he considers that any order passed therein byany officer subordinate to him 1 [or the Authorityfor Clarification and Advance Rulings constituted under Section 60] is erroneousin so far as it is prejudicial to the interest of the revenue, he may ifnecessary, stay the operation of such order for such period as he deems fit andafter giving the person concerned an opportunity of being heard and after makingor causing to be made such inquiry as he deems necessary, pass such orderthereon as the circumstances of the case justify, including an order enhancingor modifying the assessment, or canceling the assessment or directing a freshassessment.
(3) The Additional Commissioner or the Commissioner shall not exercise any powerunder sub-section (1) or sub-section (2), as the case may be, if.-
(a) the time for appeal against the order has not expired;
(b) the matter has been subject to an appeal under Section 63 or a revision in theHigh Court; or (c) more than four years have expired after the passing of theorder sought to be revised.
2[Provided that in the case of an order passed by the appellate authority under section 62 allowing the appeal preferred in full, the condition specified in clause (a) shall not apply.]
(4) Notwithstanding anything contained in sub-section (3), the AdditionalCommissioner or the Commissioner may pass an order under sub-section (1) or (2),as the case may be, on any point which has not been raised and decided in anappeal or revision referred to in clause (b) of sub-section (3), before theexpiry of a period of one year from the date of the order in such appeal orrevision or before the expiry of a period of four years referred to in clause(c) of that sub-section, whichever is later.
(5) Every order passed in revision under sub-section (1) shall, subject to theprovisions of sub-section (2) of this Section and Sections 66 and 67, be final.
(6) Every order passed in revision under sub-section (2) shall, subject to theprovisions of Sections 65 and 66, be final.
(7) If the order passed or proceedings recorded by the appropriate authorityreferred to in sub-section (1) or (2), involves an issue on which the High Courthas given its decision adverse to the revenue in some other proceedings and anappeal to the Supreme Court against such decision of the High Court is pending,the period spent between the date of the decision of the High Court and the dateof the decision of the Supreme Court shall be excluded in computing the periodreferred to in clause (c) of sub-section (3).
(8) In computing the period of limitation for the purpose of sub-section (3), anyperiod, during which any proceeding under this Section is stayed by an order orinjunction of any court, shall be excluded.
(9) For the purposes of this Section, 'record' shall include all recordsrelating to any proceedings under this Act available at the time of examinationby the Additional Commissioner or the Commissioner.
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1. Inserted by Karnataka Value Added Tax (Amendment) Act, 2005.
2. Inserted by Karnataka Value Added Tax (Amendment) Act, 2009.
(1)Within 1 [one hundred and eighty days] from the dateon which an order under sub-section (5) or (8) or (9) of Section 63 wascommunicated to him, the appellant or the respondent may prefer a petition tothe High Court against the order on the ground that the Appellate Tribunal haseither failed to decide or decided erroneously any question of law:
(2)The High Court may admit a petition preferred after the period of 1 [onehundred and eighty days] aforesaid if it is satisfied that the petitioner hassufficient cause for not preferring the petition within that period.
(3)The petition shall be in the prescribed form, shall be verified in theprescribed manner, and shall, when it is preferred by any person other than anofficer empowered by the Government under sub-section (1) of Section 63, beaccompanied by a fee of one hundred rupees.
(4)If the High Court, on perusing the petition, considers that there is nosufficient ground for interfering, it may dismiss the petition summarily:
(5)The High Court shall not dismiss any petition unless the petitioner has had areasonable opportunity of being heard in support thereof.
(6)(a) If the High Court does not dismiss the petition summarily, it shall, aftergiving both the parties to the petition a reasonable opportunity of being heard,determine the question or questions of law raised and either reverse, affirm oramend the order against which the petition was preferred or remit the matter tothe Appellate Tribunal with the opinion of the High Court on the question orquestions of law raised or pass such other order in relation to the matter asthe High Court thinks fit.
(b)Where the High Court remits the matter to the Appellate Tribunal under clause(a) with its opinion on questions of law raised, the latter shall amend theorder passed by it in conformity with such opinion.
(7)Before passing an order under sub-section (6) the High Court may, if itconsiders necessary so to do remit the petition to the Appellate Tribunal anddirect it to return the petition with its finding on any specific question orissue.
(8)Notwithstanding that a petition has been preferred under sub-section (1), thetax shall be paid in accordance with the assessment made in the case.
(9)If as a result of the petition, any change becomes necessary in such assessment,the High Court may authorize the prescribed authority to amend the assessmentand the prescribed authority shall amend the assessment accordingly andthereupon the amount overpaid by the person concerned shall be refunded to himwithout interest or the additional amount of tax due from him shall be collectedin accordance with provisions of this Act, as the case may be.
(10)(a) The High Court may, on the application of either party to the petition,review any order passed by it under sub-section (6) on the basis of facts whichwere not before it when it passed the order.
(b)The application for review shall be preferred within such time and in suchmanner as may be prescribed, and shall where it is preferred by any person otherthan an officer empowered by the Government under sub-section (1) of Section 63be accompanied by a fee of one hundred rupees.
(11)(a) With a view to rectifying any mistake apparent from the record, the HighCourt may, at any time within five years from the date of the order passed by itunder sub-section (6), amend such order.
(b)The High Court shall not pass an order under this sub-section without givingboth parties affected by the order a reasonable opportunity of being heard.
(12)In respect of every petition preferred under sub-section (1) or (10), the costsshall be in the discretion of the High Court.
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1.Substituted for the words "one hundred and twenty days " by Karnataka Taxation Laws (Amendment) Act, 2005.
(1) Any person objecting to an order passed by the Commissioner or the Additional Commissioner under Section 64 1[or a dealer aggrieved by the order of the Authority under Section 60] may appeal to the High Court within sixty days from the date on which the order was communicated to him.
(2) The High Court may admit an appeal preferred after the period of sixty days aforesaid, if it is satisfied that the person had sufficient cause for not preferring the appeal within that period.
(3) The appeal shall be in the prescribed form, shall be verified in the prescribed manner, and shall be accompanied by a fee of five hundred rupees.
(4) The High Court shall, after giving both parties to the appeal a reasonable opportunity of being heard, pass such order thereon as it thinks fit.
(5) The provisions of sub-sections (6) to (12) of Section 65, shall apply in relation to appeals preferred under sub-section (1) as they apply in relation to petitions preferred under sub-section (1) of Section 65.
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1. Inserted by Karnataka Taxation Laws (Amendment) Act, 2005.
No objection as to the territorial or pecuniary jurisdiction of any prescribed authority shall be entertained or allowed by any Court, Tribunal or authority in an appeal or revision, unless such objection was taken before the prescribed authority at the earliest possible opportunity.
Every Petition, application or appeal preferred to the High Court under Section 65 or 66 shall be heard by a bench of not less than two Judges, and in respect of such petition, application or appeal, the provisions of Section 98 of the Code of Civil Procedure, 1908 (Central Act V of 1908), shall apply.
(1) With a view to rectifying any mistake apparent from the record, the prescribed authority, appellate authority or revising authority, may, at any time within five years from the date of an order passed by it, amend such order.
(2) Any amendment which has the effect of enhancing an assessment or otherwise increasing the liability of the person concerned shall not be made unless the prescribed authority, appellate authority or revising authority, as the case may be, has given notice to the person concerned of its intention to do so and has allowed the person concerned the opportunity of showing cause in writing against such amendment.
1[(2-A) Where an application is made by an assessee for rectification of any mistake in an order, as being apparent from the record and, such application has not been rejected by the Assessing Authority within sixty days from the date of receipt of the application, the order shall be deemed to have been amended rectifying such mistake.]
(3) Where an order has been considered and decided in any proceedings by way of appeal or revision relating to an order referred to in sub-section (1), the authority passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.
(4) An order passed under sub-section (1), shall be deemed to be an order passed under the same provision of law under which the original order, the mistake in which was rectified, has been passed.
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1. Inserted by Karnataka Value Added Tax (Amendment) Act, 2005.
(1)For the purposes of payment or assessment of tax or any claim to input tax underthis Act, the burden of proving that any transaction of a dealer is not liableto tax, or any claim to deduction of input tax is correct, shall lie on suchdealer.
(2)Where a dealer knowingly issues or produces a false tax invoice, credit or debitnote, declaration, certificate or other document with a view to support or makeany claim that a transaction of sale or purchase effected by him or any otherdealer, is not liable to be taxed, or liable to tax at a lower rate, or that adeduction of input tax is available, the prescribed authority shall, ondetecting such issue or production, direct the dealer issuing or producing suchdocument to pay as penalty:
(a)in the case of first such detection, three times the tax due in respect of suchtransaction or claim; and
(b)in the case of second or subsequent detection, five times the tax due in respectof such transaction or claim.
(3)Before issuing any direction for the payment of the penalty under this Section,the prescribed authority shall give to the dealer the opportunity of showingcause in writing against the imposition of such penalty.