Kara Samadhana Scheme under CST, KST and KTEG Acts

PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA

  Sub: Kara Samadhana Scheme– regarding.

Preamble:

  Huge amounts of taxes together with penalties levied and interest accrued on such taxes and penalties due under the KST, CST and KTEG Acts have been locked up in cases pending with the departmental appellate authorities, Appellate Tribunal and Courts. In most of these cases the tax demanded by the departmental authorities in addition to the tax admitted in the returns filed by the assessees have been disputed or penalties levied on the assessees have been disputed by them. The main grounds of disputes in these cases are additions made by the assessing authorities based on their own findings or reports received, rejection of claims of tax exemption/tax concession in the absence of statutory/prescribed forms to be issued by the buyers, rejection of claims of tax exemption inter-State stock transfers and levy of discretionary penalties. 

            It is considered necessary to reduce these arrears by offering a scheme to settle the disputes on part payment of the amounts disputed as the completion of the proceedings to resolve these disputes would take considerable time and also efforts both of the administration and the tax payers. Accordingly, the Government hereby accords approval to such a scheme.

Consequently, it is considered necessary to specify the conditions and procedural aspects of the said Scheme. 

Hence the following Order.

GOVERNMENT ORDER NO.FD 291 CSL 03, Dated 3^rd October, 2003.

The taxes and penalties levied, and the interest accrued in respect of taxes or other amounts due which are involved in pending appeals filed before any Appellate Authority or Tribunal or Court on or before 31^st March, 2003 are waived off to the extent specified below subject to the conditions specified.

I. Conditions:

1. In cases where additions have been made in the declared turnover by the assessing authorities based on estimations but excluding cases relating to claims of industrial incentives, if, the taxes admitted have already been paid and 30% of the tax levied on the additions made has already been paid or is paid on or before 31.12.2003 along with,

10% of the interest payable on 30% of such tax levied, if the appeal was filed on or before 31.3.2000 or 50% of the interest payable on such 30% of such tax levied, if the appeal was filed later; and then balance amount of taxes levied, interest accrued and penalties levied would stand waived.

2. In cases where claims of concessional lower tax have been rejected by the assessing authorities in the absence of statutory forms like Form 32-B declarations, Form 37 declarations, Form 40 declarations, C Forms, D Forms and H Forms or any other prescribed form, if the taxes admitted have already been paid and 20% of the taxes levied on the claims rejected have already been paid or are paid on or before 31.12.2003 along with,

10% of the interest payable on such 20% of the tax levied, if the appeal was filed on or before 31.3.2000 or 50% of the interest payable on such 20% of the tax levied, if the appeal was filed later; and

25% of the penalties levied, if any, then the balance amount of taxes levied, interest accrued and penalties levied would stand waived.

3. In cases where claims of inter-State stock transfers under the CST Act, 1956 have been rejected by the assessing authorities, if the taxes admitted have already been paid and 25% of the taxes levied on the turnovers involved in the rejected claims have already been paid or are paid on or before 31.12.2003 along with,

10% of the interest payable on such 25% of the tax levied, if the appeal was filed on or before 31.3.2000 or 50% of the interest payable on such 25% of the tax levied, if the appeal was filed later; and

25% of the penalties levied, if any, then the balance amount of taxes levied, interest accrued and penalties levied would stand waived.

4. In cases where penalties have been levied under Section 12(4) or 12-A (1-A) or 12-B (4) of the KST Act, 1957 or Section 5(5) or 6(2) or 7(3) of the KTEG Act, 1979, if the taxes admitted have already been paid without being disputed in any appeal and 10% of the penalty levied is paid on or before 31.12.2003 along with 10% of the interest payable, if the appeal was filed on or before 31.3.2000 or 50% of the interest payable, if the appeal was filed later, then the balance amount of penalties levied and interest accrued would stand waived.

5.The assessee opting for this scheme shall withdraw the appeal preferred or should not press the issues covered under this scheme if the appeal preferred involves other issues by making a suitable application before the concerned authority, on or  before 31.12.2003.

6.   This scheme shall not apply to a case in which, if after filing of an application by 

an assessee under this scheme, any appeal is disposed of before its withdrawal by the 

assessee.

      7. If in any case the assessee has paid tax, penalty or interest in excess of the amounts    

specified in this scheme, then the amounts specified in this scheme shall stand modified to that extent and the scheme shall apply only to the balance amounts.

II. Procedure:

1. The assessee opting for this Scheme shall submit an application in the format appended to this Order before the concerned assessing authority.

2. The concerned assessing authority shall scrutinize such application and satisfy himself that,

the amounts sought to be waived in the application are involved in pending appeals filed on or before 31.3.2003 before the departmental Appellate Authority or Tribunal or Court;

the taxes admitted have already been paid in full;

the taxes and other amounts as specified in this Order have been paid in full within the time specified; and

in cases where the assessee has preferred appeals against orders or proceedings relating to the amounts due, such appeal has been withdrawn or an application has been filed before the authority concerned not to press the issues covered by this scheme if the appeal covers other issues also, before the date specified above and that such appeals have not been disposed of after the filing of application by the assessee.

3. The assessing authority shall then order for waiver/ write off of balance amounts of tax levied, penalty levied and interest payable which are due as the case may be.  The remission order shall be communicated to the assessee within a week from the date of the order.

4. All the applications filed under this scheme which are correct and complete shall be disposed of within 30 days from the date of their filing.

By Order and in the name of the

      Governor of Karnataka,

                                                                        (S.DIVAKAR)

                                                            Under Secretary to Government,

   Finance Department (C.T.-1).

To:

The Compiler, Karnataka Gazette, Bangalore for publication in the next issue of Gazette and supply 100 copies to the Finance Department (C.T.1) and 600 copies to the Commissioner of Commercial Taxes, Gandhinagar, Bangalore -9.

Copy to:

The Commissioner of Commercial Taxes, Gandhinagar, Bangalore-9,

The Accountant General (Audit)/ (Accounts) Karnataka, Bangalore-9,

The Secretary, Karnataka Legislature Secretariat, Bangalore.

Spare copies.

WRITE OFF

PENALTY AND INTEREST UNDER

KARA SAMADHANA SCHEME- 2003

1.         Name and address of the assessee        :

2.         Name of the Office in which

            registered                                          :

3.         Registration No.                                   :

4.         (a) Assessment year/ month                  :

           (b) Date of provisional/ final assessment order.:

           (c) Date of penalty order          

                        (i) under Section …….            :

                       (ii) under Section ……..            :

                       (iii) under Section …….             :

5.         (a)   (i) Details of payment of admitted

                    tax.                                                :

                   (ii) Arrears of assessed tax

        as on the date of the application.   :          Rs………………….

                   (iii) Details of payment of assessed

                    tax due as prescribed in the G.O.

(b)       (i) Arrears of penalty levied as on the date of application. :           Rs…………………

(ii) Details of payment of penalty due as prescribed in the G.O.        :

(c)        (i) Interest accrued as on the date of application.

(1) under Section …….            :           Rs…………………

(2) under Section …….:           :           Rs…………………

                   (ii) Details of payment of

                        interest due.                              :

6.         (i) The authority before whom the pending        

                  appeal is filed.                                  :                   

            (ii) Date of filing                                 :

7.         Date of withdrawal of the appeal/          :

            application of withdrawal of issues

            covered under this scheme.

            I………….do hereby solemnly declare that to the best of my knowledge and belief the information furnished in the above application is true and complete.

Date:…………….                                                       Signature of the assessee.

Place:……………

Note:

1.         Application to be filed separately under each Act and for each assessment year.

2.         Copies of the assessment order and penalty order and proof of withdrawal of appeal/withdrawal of issues covered by this application to be enclosed.

3.         Sections to be mentioned under relevant Acts.

4.         Strike out whichever is not applicable.

DECLARATION

            I Sri/ Smt/ Ms./ M/s………………………… hereby solemnly declare that I am/we are a registered dealer under the  *Karnataka Sales Tax Act, 1957/ *Central Sales Tax Act, 1956/ *Karnataka Tax on Entry of Goods Act, 1979 with R.C.No.………………….. borne on the files of the Office of the …………………………..  I have withdrawn the appeal filed/filed application not to press the issues filed against the assessment concluded or other proceedings for the year/ month …………. under the ……………………………. (mention the statute under which assessment or other proceeding is concluded) pending before the *Joint Commissioner of Commercial Taxes (Appeals)/ *Karnataka Appellate Tribunal/ *Karnataka High Court/ *Supreme Court, to avail the benefit of Kara Samadhana Scheme offered by the Government of Karnataka as one-time measure vide Order No.FD  CSL 2003 dated  on ……………...   I enclose  the documentary proof for the withdrawal of the appeal/submission made before the authority not to press the issues covered under this scheme.  I affirm that I shall not persecute the said appeal to the extent covered by this scheme, before any appellate authority or Tribunal or the Court.

Date:                                                                Signature of the assessee

                                                                                    and seal.

Place:                                                               Address:

(*Strike out which ever is not applicable)

http://www.kar.nic.in/ctax/kar_adalat.doc