State Act

THE KARNATAKA SALES TAX ACT, 1957

1[4. Provision for clarification and advance rulings.- (1) The Commissioner may constitute a State level ‘Authority for Clarification and Advance Rulings’, (here in after referred to in this section as Authority) consisting of three Additional Commissioners, to clarify the rate of tax applicable under this Act in respect of any goods liable to tax under the Act or the exigibility of any transaction to tax under the Act on an application by a dealer registered under the Act. (2) The application shall be in such form and shall be accompanied by proof of payment of such fee, paid in such manner, as may be prescribed. (3) An applicant may withdraw an application within thirty days from the date of application. (4) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the assessing or registering authority concerned and call for 1[its finding on the clarification sought or question raised and also] any information or records. (5) The Authority may, after examining the application and any records called for, by order, either, 1[admit] or reject the application. Provided that the Authority shall not allow the application where the question raised in the application,- (i) is already pending before any officer or authority of the Department or Appellate Tribunal or any Court; (ii) relates to a transaction or issue which is designed apparently for the avoidance of tax. Provided further that no application shall be rejected under this sub-Section unless an opportunity has been given to the applicant of being heard and where the application is rejected, reasons for such rejections shall be recorded in the order. (6) A copy of every order made under sub-Section (5) shall be sent to the applicant and the officer concerned. (7) Where an application is 1[admitted]1 under sub-Section (5), the Authority shall after examining such further material as may be placed before it by the applicant or obtained by the Authority, pass such order as deemed fit on the questions specified in the application, after giving an opportunity to the applicant of being heard, if he so desires 2[and also to the assessing authority or registering authority concerned]2. The authority shall pass an order within 1[ninety days] of the receipt of any application and a copy of such order shall be sent to the applicant and to the officer concerned. (8) No officer or any other authority of the Department or the Appellate Tribunal shall proceed to decide any issue in respect of which an application has been made by an applicant under this Section and is pending. (9) The order of the Authority shall be binding only,- (i) on the applicant who had sought clarification; (ii) in respect of the goods or transaction in relation to which a clarification was sought; and (iii) on all the officers other than the Commissioner. (10) The order of the Authority under sub-section (7) shall be binding as aforesaid unless there is a change in law or facts on the basis of which the order was passed. (11) Where the Authority on a representation made to it by any officer or otherwise finds that an order passed by it was obtained by the applicant by fraud or mis-representation of facts, it may, by order, declare such order to be void ab initio and thereupon all the provisions of this Act shall apply to the applicant as if such order had never been made. (12) A copy of the order made undser sub-Section (11) shall be sent to the applicant and the Commissioner or the officer concerned.]1 1[(13) Notwithstanding any clarification or any ruling given by the ‘Authority for Clarification and Advance Rulings’ under sub-section (7) pertaining to any particular goods, the rate of tax payable in respect of such goods by the applicant shall be at such rate as may be clarified by the Commissioner under sub-section (2) of section 3-A, from the date of its publication in the official Gazette]1