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The provisions made in the Bill do not involve additional expenditure from the Consolidate Fund of the State. 1957: KAR. ACT 25] Sales Tax 241 (Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 6-9- 1963 as No. 114) XII Amending Act 29 of 1964.—In accordance with the decision at a conference of Chief Ministers, the rate of tax leviable on certain luxury goods has already been raised from seven per cent to ten per cent. It is now proposed to raise the rate of tax leviable under the Second Schedule to the Mysore Sales Tax Act, 1957, in respect of cigar and cigarette cases, lighters and holders of cigar and cigarettes from seven per cent to ten per cent. Under the Fourth Schedule to the Act, a tax at the rate of two per cent on the point of first purchase is leviable on hides and skins. In view of representations made in this behalf, it is now proposed to levy tax at the rate of one per cent at the point of last purchase. The Government of India had suggested exemption being given to food grains sold by the Central Government and by a wholesale Central Co- operative Society. On an earlier occasion, the Government of India had also suggested exemption being given in respect of goods sold to Indian Aid Mission, Nepal. It is also considered necessary to grant exemption to goods sold by canteens run under the auspices of the Central Government or State Government Offices for the benefit of the members of the staff. It is therefore proposed to amend the Fifth Schedule to the Act. Hence this Bill. As no expenditure is involved, financial memorandum is not given. There is also no delegated legislation. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 16th June 1964, as No. 147, at page 4.) XIII Amending Act 3 of 1966.—With a view to augmenting the resources of the State, it is considered necessary to rationalise and remove the differences in the rate structure as compared to rates of tax in the neighbouring State. The opportunity has been taken to make certain other amendments considered necessary. Hence this Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 16th October 1965 as No. 200, at page. 7.) XIV Amending Act 7 of 1966.— For the implementation of Fourth Five-Year Plan, the State has to raise sufficient resources. These resource have to be raised mostly by additional taxation and it has therefore become necessary to make an upward revision of the rates of sales tax so as to get more revenue from this source. Many other States in India have already taken steps to enhance the rates of sales tax. The present Bill is Sales Tax [1957: KAR. ACT 25 242 mainly intended to enhance the rate of sale tax on luxury goods from 10% to 12% and on goods liable to multi -point tax and also on most of the goods other than luxury goods coming under the Second Schedule by 1/2%. It is also proposed to give a rebate of 1% in respect of luxury goods imported from outside the State as they will have been subjected to Central Sales Tax during the course of import. Some of the lacunae notice in the course of implementing the Act are also proposed to be rectified. Industrial, Commercial or trading undertaking of the State Government are getting themselves registered as dealers under Mysore Sales Tax Act, to become eligible for registration under the Central Sales Tax Act also and get the benefit of concessional rates applicable to registered dealers in respect of inter-state transaction. The definition of "dealer" is proposed to be amplified to include such undertakings also. The minimum turnover which would render a dealer liable to registration and to payment of tax is proposed to enhanced from Rs. 7,500 to Rs.10,000. Hence this Bill. XV Amending Act 16 of 1967.—Consequent on the amendment of the Central Sales Tax Act by the Parliament providing for the enhancement of the rates of tax applicable to the declared goods under the local sales tax laws, it has become necessary to amend the IV Schedule which specifies the declared goods and the rates of tax applicable to them. The rates of tax applicable to the declared goods specified therein are now being enhanced accordingly. The Government was considering the question of granting certain concessions to new industries with a view to encourage development of industries in the State. The Government recently took a decision that in respect of new industries exemption from the payment of Sales Tax should be provided for an initial period of two years. The manner in which that exemption should be provided was examined and it was thought that it can be best done by means of Notifications issued from time to time whenever occasion arises. Since the Act did not contain a provision empowering the State Government to issue such notifications it is now intended to insert a provision empowering the Government to notify exemptions and reduction of tax rates. Such a provision exists in the Sales Tax Laws of the Neighbouring States also. This occasion is also utilised to make certain minor amendments relating to procedural matters and also to provide for concessional rate of tax for vermicelli and to reduce the rates of tax on sugarcane and to exempt Amber Charkas, Druggets, Durries and Carpets. The benefit of exemption granted to bona fide producers under item 28 of the V Schedule is proposed to be limited to persons who produce goods exclusively coming under village industry. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 12th December 1967 as No. 278, at page. 10.) 1957: KAR. ACT 25] Sales Tax 243 XVI Amending Act 17 of 1969.—Clause (j) of sub-rule (4) of Rule 6 of the Mysore Sales Tax Rules, 1957 provided for the exclusion of excise duty paid by a dealer from the computation of his taxable turnover. By Government Notification No. GSR 882, dated 16th March 1966, this clause was deleted from the rules with the object of recovering sales tax even on the excise duty portion of the turnover of dealers. In respect of arrack which falls under entry relating to Sl. No. 39 of the Schedule, sales are made by Government to licensed contractors and sales tax was recovered from them at 6½% on the total amount payable by them including the excise duty from 1st April 1966. The Mysore High Court in W. P. No. 644/66 D. Cawasji & Co., and others vs. the State of Mysore (1968 16 LR 64) held that on the sales of arrack, the sales tax cannot be collected on the total amount but has to be collected only on the basic price excluding excise duty on the ground that the duty in such a case does not form part of the sale price but is a separate "levy" made by the Government at the time of releasing the stocks from the Government Bonded Warehouse. Consequently, a considerable amount already recovered may become refundable. In order to get over the effects of the High Court decision and retain the money already recovered by the Government, it is proposed to enhance the rate of tax on arrack to 45% with retrospective effect from 1st April 1966. The enhanced rate of tax on the basic price would be absorbed in the price already recovered, and no additional tax is expected to be realised from this Bill. Since the Legislature was not in session and in view of urgency, an Ordinance was promulgated. The Bill is to replace the Ordinance. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 14th August 1969, as No. 400, at page. 4.) XVII Amending Act 27 of 1969.—In sub-sections (4) to (7) of Section 28- A of the Mysore Sales Tax Act, 1957, a provision was made to confiscate the goods by the Check-post Officer, whenever the goods under transport are not covered by proper documents to show that the goods in question have already been subjected to sales tax. If the party desired to release the goods on the sport itself, he was to pay ten per cent of the estimated value of the goods. The High Court of Mysore in Venkatachalpathy vs. Commercial Tax Inspector and other (1965_16 S.T.C. 894), while upholding the validity of sub-sections (1), (2) and (3) of the said section, have struck down the provisions of sub-sections (4), (5), (6) and (7). It, is, therefore, proposed to substitute new sub-sections (4), (5), (6) and (7) providing for,— (1) levy of penalty; (2) the limits upto which the penalty may be levied; (3) the procedure to be followed when the penalty is not paid; and (4) an appeal by the aggrieved person. Sales Tax [1957: KAR. ACT 25 244 Provision has also been made that the officer-in-charge of the check post or barrier shall be an officer not below the rank of an Assistant Commercial Tax Officer and not higher in rank than an Assistant Commissioner of Commercial Taxes. In order to ensure that there is no evasion of tax, a new section 28C is also proposed to be incorporated in the Act, requiring submission of the documents referred to in sub-section (2) of Section 28A or copies thereof by the owner or other person in charge of a goods vehicle or boat in respect of the goods under transport to the Commercial Tax Officer. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 14th August 1969 as No. 398, at page. 5.) XVIII Amending Act 31 of 1969.—While considering methods by which delays in the disposal of cases can be reduced and the time of the courts can be saved in trying a large volume of petty cases, the Law Commission of India in their fourteenth Report recommended the adoption of the procedure laid down in section 130 of the Motor Vehicles Act, 1939. Section 130 of the Motor Vehicles Act, 1939 provides for the summary disposal of cases arising under that Act in respect of specific class of offences thereunder. In accordance with that section, the accused person can plead guilty to the charge by registered letter and remit to the court as fine such sum as the court may specify. The Commission has recommended that this procedure may be extended to minor offences under other Acts. After examining the suggestion of the Law Commission of India, it has been decided to make a provision in the Mysore Sales Tax Act, 1957 (Mysore Act 25 of 1957) and the Mysore Entertainments Tax Act, 1958 (Mysore Act 30 of 1958) similar to section 130 of the Motor Vehicles Act, 1939 to deal with the offences prescribed under section 29 (1) of the Mysore Sales Tax Act, 1957 and section 12 (1) (b) (ii) of the Mysore Entertainments Tax Act, 1958. Hence this Bill. (Published in Karnataka Gazette Part IV-2A dated 13th February 1969, at page. 32.) XIX Amending Act 9 of 1970.—In the Budget speech it was indicated that the Mysore Taxation and Resources Enquiry Committee's Report on Sales Tax, copies of which were already circulated among the members of the Legislature, has been accepted by the Government with certain modifications. This Bills is intended to implement these decisions. The more important of these decisions are:— (1) Enhancement of the minimum limit of turnover for tax liability from Rs. 10,000 to Rs. 25,000. 1957: KAR. ACT 25] Sales Tax 245 (2) Raising the maximum limit of turnover for composition benefits to Rs. 75,000. (3) Repeal of the Mysore Sales of Motor Spirit Taxation Act, 1957 and bringing the sales of Motor Spirits within the preview of the Mysore Sales Tax Act, 1957. (4) Rationalisation of the tax rates. This opportunity is also being availed of to include in this Bill certain other amendments which are found necessary. Hence the Bill. (Published in Karnataka Gazette (Extraordinary) Part IV-2A dated 26th March 1970, as No. 105, at page 21.) XX Amending Act 15 of 1970.—Consequent upon the amendment of the Central Sales Tax Act, 1956 by the Central Sales Tax (Amendment) Act, 1969, proceedings for the rectification of assessment and appellate orders were taken under rule 38 of the Mysore Sales Tax Rules. In respect of rectification proceedings taken by the appellate authorities, the validity of rule 38 was questioned in certain writ petitions. In view of the decision of the High Court with reference to section 12A in Lakshmi Bags Manufacturing Co., v. State of Mysore [1969 (1 Mys L.J. 425], it was considered necessary to make specific provision for appeals against orders of rectification of the appellate authorities. As there are many cases in which the rectification proceedings have been challenged and the collection of tax had to be expedited, it was considered necessary to make provision in the Act itself for rectification of assessment and appellate orders. As the matter was urgent and as both the Houses of Legislature were not in Session, the Mysore Sales Tax (Amendment) Ordinance was promulgated on 9th June 1970, Provision was made by this amendment empowering the assessing authority, appellate authority, the revising authority, the Appellate Tribunal and the High Court to rectify any mistake apparent from the record. This Bill is intended to replace the Ordinance. (Published in Karnataka Gazette (Extraordinary) Part IV-2A, dated 11th September 1970 as No. 389, at page. 7.) XXI Amending Act 18 of 1971.— In order to raise additional resources to be utlised exclusively for the relief of Bangla Desh refugees, the Government of Mysore has proposed to levy an additional tax at the rate to two paise in the rupee on the sales tax or purchase tax or both payable by all dealers liable to pay tax under the Mysore Sales tax Act, 1957. The present measure is being enacted to give effect to the said proposed.