State Act

THE KARNATAKA SALES TAX ACT, 1957

1[12-AA. Assessment in cases of price variation or price revision.- (1) Notwithstanding anything contained in sub-section (1) of section 12A,— (a) If a dealer receives or pays in any year any amount due to price variations or price revisions which would have been included in his turnover for any previous year, if it had been received or paid during that year he shall, within thirty days from the date on which such amount is received or paid submit a return in the prescribed form to the assessing authority and pay the full amount of tax payable by him 2[at such rate as was applicable during such previous year on such turnover]2: Provided that if the amount so received or paid in any year relates to two or more previous years, separate returns shall be submitted for each such year. (b) If the assessing authority is satisfied that any return submitted under clause (a) is correct and complete, he shall assess the dealer on the basis thereof; (c) If the return submitted by a dealer under clause (a) appears to the assessing authority to be incorrect or incomplete, the assessing authority shall, after making such inquiry as he may consider necessary and after taking into account all relevant materials gathered by him, assess the dealer to the best of his judgment: Provided that before taking action under this clause the dealer shall be given a reasonable opportunity to prove the correctness and completeness of the return: (2) In making an assessment under this section the assessing authority may also direct the dealer to pay in addition to the tax assessed, a penalty not exceeding one and a half times the amount of tax due on the turnover not disclosed by the dealer in his return or in the case of failure to submit the return, a penalty not exceeding one and a half times the tax assessed as the case may be: Provided that no penalty under this sub-section shall be imposed unless the dealer affected has had a reasonable opportunity of showing cause against such imposition.]1