introduction to acts administered by the … week sep/bihar... · introduction to acts administered...

DEPARTMENT OF COMMERCIAL TAXES

KARNATAKA

INTRODUCTION TO ACTS

ADMINISTERED BY THE

DEPARTMENT

ACTS ADMINISTERED: KVAT Act 2003:- This enactment came into force from: 01-04-2005 KST Act 1957:- This Act continues to be in force and provides for levy of

tax only on few goods - Petrol, Diesel, Aviation Turbine Fuel and Sugarcane which are exempt under and VAT Act.

CST Act 1956:- The provisions of this Act for levy of tax on inter State sales

came into force from July 1957. KTEG Act 1979:- Karnataka Tax on Entry of Goods Act 1979- provides for

levy of Entry on Entry of specified goods in to local Area for consumption use or sale therein.

KTPTC Act:- The Karnataka Tax on profession, Trade and callings Act

provides for levy of tax on notified professions. Luxury Tax Act:- The Luxury Tax Act provides for tax on Luxuries defined

under the Act. Agricultural Income Tax:- Provides for levy of Agricultural Income Tax on

Company Estates on income from Coffee, Tea and Rubber grown in the Estates.

Betting Tax:- Karnataka Betting Tax Act provides for levy of tax on Betting

amount. The Betting Tax is realized from Two Race Courses in the State.

Taxes realized by the department under different Acts for the year 2013-14 are as under:-

Name of the Act Name of the Act in Short

Collection ₹. in crore

Value Added Tax

VAT 23546.31

Sales Tax ST 7231.93

Entry Tax KTEG 2645.65

Central Sales Tax

cst 1896.65

Profession Tax pt 808.32

Luxury Tax LT 300.46

Entertainments Tax

ET 168.69

Betting Tax BT 153.70

Agricultural Income Tax

AIT 21.29

KVAT ACT – 2005 : -

KVAT Act 2003 came into force from 01-04-2005

providing for levy of tax on sale or purchase of

goods with provision for Input tax credit.

The KST Act has not been repealed or replaced.

Continues to provide for levy of tax on Petrol,

Diesel, Aviation turbine fuel and sugar cane.

Those Commodities are exempt under KVAT Act.

All other commodities are exempt under KST Act.

Important Definition : -

Definition of words under KVAT Act are similar to KST Act.

Business : Includes any trade, commerce, manufacture,

adventure or concern. Whether or not such activity is

carried on in furtherance of loss or profit.

Dealer : Means a person who carries on business of

buying , supplying or distributing goods – whether for cash

or delayed payment or commission or other valuable

consideration, includes industrial undertaking, statutory

authorities, casual dealer, commission agent, non resident

dealer, works contractor, engaged in transfer of right to

use goods or hire purchase.

Input : Any goods purchased by a dealer including

capital goods in the course of business for resale or use

in manufacturing or processing, packing.

Input Tax : Sum total of tax paid on purchase of

inputs.

Output Tax : Is the tax payable on the sale of taxable

goods and includes tax payable by a commission agent.

Return : any return required to be furnished under the

Act including Revised Return.

Tax Period : Means such periods as may be

prescribed. It is calendar month under Rule 37 and

quarterly for composition dealer

REGISTRATION :

Every dealer whose taxable turnover exceeds Rs.5 Lakh per

annum.

Whose taxable turnover exceeds Rs.40,000/- per month.

To whom part or whole of business is transferred

Who brings in taxable goods from outside the state as a result of

purchase or otherwise.

Who effects within state sale of taxable goods or despatches to

outside the state.

Casual dealer, non resident dealer or an agent or a works

contractor.

Voluntary Registration.

Suo Motu Registration.

Registration is online

CANCELLATION OF REGISTRATION :

Where a business has been discontinued,

transferred or otherwise disposed.

Any change in status of ownership

Taxable turnover has not exceeded Rs.5 Lakhs over

a period of 12 consecutive months.

An Application by a dealer for any reason or Suo

Motu.

Cancellation of Registration will not effect the tax

liability of the dealer.

The Incidence and Levy of Tax :

The Tax shall be levied on every sale of goods in

the state by a Registered dealer or a dealer liable

to be registered.

The tax shall also be levied and paid by every

registered dealer or a dealer liable to be registered

on the sale of taxable goods to him for use in the

course of business by a person who is not

registered under the Act.

Liability to Tax and Rates of Tax :

Section 4(1)(a) :-

Every registered dealer shall be liable to pay tax on his taxable

turnover in respect of goods mentioned in:

Second Schedule @ 1%

Third Schedule @ 5.5%

Third Schedule – entry 20, capital goods, 51-

Industrial inputs, 53 – IT Products have been notified

and commodities are identified through H.S.N. Code

(Harmonized system of nomenclature of Central Excise

Tariff Act)

Fourth Schedule @ 20%


Section 4(1)(b) :-

Declared goods specified in Sec. 14 of CST Act at the maximum

rate prescribed under Sec. 15 of CST Act.

Cigarettes, Cigar, Gutkha and other manufactured Tobacco

products – 17%.

All other goods – 14.5%.


Section 4(1)(c): Works Contract – Sixth Schedule.

Section 4(2): Containers to be taxed at the same rate

as content.

Section 4(3): State Government may by Notification

reduce the tax payable in respect of any goods.

Section 4(4): Registered dealer may elect to pay tax

on M.R.P. (Pharmaceutical goods).

Section 4(5): Cigarettes, Cigar, Gutkha, Tobacco

products shall pay on M.R.P. when sale exceeds

Rs.500/- or any other amount as may be notified. If

such goods are not taxable at the hands of purchaser on

his sales, then refund adjustment applicable.

Exemption from Tax: First Schedule by Notification.

Collection of Tax by Registered Dealer,

Governments,

Statutory Bodies

Every registered dealer liable to pay Tax under the Act shall

collect Tax at the rate or rates at which he is liable to pay Tax.

Central Government, State Government, Statutory Body, Local

Authority shall collect similar to a registered dealer.

Deduction of tax in respect of Works Contract by Government,

industrial, commercial undertaking, trading units equivalent to

payable by such dealer.

Deduction shall be made on the basis of tax calculated by

dealer. If the tax calculated is less than actual payable by 15%,

then the same may be intimated to tax deduction authority and

also issue a certificate to the tax deducting authority.

Deduction of tax at source in case of Canteens by factories or

industrial undertakings.

COMPOSITION OF TAX

Composition of Tax, by other than a dealer who purchases or

obtain goods from outside the state.

Whose Turnover in a year does not exceed Rs.25 Lakhs.

A dealer executing works contract.

Hotelier, Restaurant, Caterer, Sweet meet Stall, Bakery.

Mechanized crushing unit producing granite or other

metals.

Accounts & Documents:

Tax Invoice: By a dealer effecting sale of taxable goods

containing particulars.

Sale Bill: By a dealer selling non-taxable goods opting to pay

tax under Composition or opting for Special Accounting

Scheme of value more than Rs.100/-

Registered dealer to maintain true and correct account in any

language notified by the Government.

Commissioner may require a registered dealer to install and

use an electronic tax register for the purpose of accessing

information regarding any matter which may affect tax liability

of such dealer.

Every registered dealer to issue tax invoice or bill of sale

through electronic tax register.

Dealer with taxable turnover of more than Rs.100 Lakhs to

have accounts audited by Chartered Accountant or Tax

Practitioner.

Books to be maintained for 5 years or till assessment reaches

Administration and Collection of Tax:

Returns:

Every registered dealer shall furnish a return within

15 / 20 days after the end of the month or any

other tax period and shall pay taxes due on such

return.

VAT Form -100 :

(a) By VAT registered dealers, monthly.

(b) Could be filed quarterly by dealers with turnover

of less than Rs.25 Lakhs (With permission)


VAT Form 120 : By dealers opting to pay tax

under Composition monthly, 15th of each month.

(a) Hoteliers – Monthly.

(b) Mechanized Crushing Units – Monthly – Tax on

each crusher – depending on size of granites

obtained.

(c) Works Contractors – Monthly.

(d) Dealers having Turnover less than Rs.25 Lakhs per

annum and opting tax composition – tax period

quarterly @ 1% (June, September, December

month)

e- filing – e- VARADHI.


Dealers under both COT, VAT to file separate return

in Form 100 & 120.

Belated Return – with interest.

Annual Statement – Consolidated monthly returns.

Corrected return Rule 39 – incomplete return to be

corrected and filed within 10 days from notice.

Final Return – At closure of business.

Return by a casual dealer.

Details of purchase and sales to be filed with return

e-UPaSS.

Assessments and Re-assessments:

Sec. 38(1)

(a) deemed assessment on the basis of return except cases

notified by the Commissioner for scrutiny assessment.

(b) To the best of its judgment if return filed is incorrect or

incomplete.

Sec. 38(2) - Dealer fails to file return – best of Judgment

assessment, if dealer subsequently files return, assessment

made could be withdrawn, but penalty and interest

applicable.

Sec. 38(5) – Protective assessment : Where any evidence

of tax liability comes to the notice – with the prior

permission from JCCT or Adcom.

If this order is found to be erroneous based on application

from dealer or on own motion, JCCT /

Adcom may pass necessary orders.

Sec. 38(7) – The prescribed authority may assess a dealer

Re-assessments:

Sec. 39 - If there is ground to believe any return

furnished which is deemed to have been assessed

or assessment issued u/s.38 under states the tax

liability, re-assessment could be taken up.

C.A.S: Comprehensive Assessment Scheme-

Period of

limitation is 5 years.

Sec.41: Rectification of assessment/ Re-

assessment

Appeals and Revisions.

Payment and Recovery of Tax:

Every registered dealer to pay taxes along with returns

Commissioner may permit installment facility

Payment of deferred taxes-Permission to pay by

isntalments.

Any tax due or shall be recovered as if it were an

arrears of land revenue, or by attachment and sale of

property or sale without attachment , or as fine imposed

on the dealer by a Magistrate or an application to

Magistrate.

Recovery from certain other persons

Arrears of tax to be first charge on property- claim of

to have preference over other secured

Recovery- limitation 12 years.

Refunds and Interest:

Refund of input tax to exporters.

Refund resulting out of appeal orders.

Refund of excess input tax over output tax payable.

Power to withheld refunds.

Enforcement Activities:

Inspections

Mobile Check-post

Permanent checkpost at Borders.

e-Sugam

e-Suvega

• VAT 100-Box No 10-ineligible Input Credit

• 10.1- Restricted under Section 11

• 10.2-Pre Registration Purchases-Sec 13

• 10.3-Special Rebating Scheme-Sec 14 Read

with 11

• 10.4-Partial Rebating Scheme

• 10.5-Return of the goods purchased

• 10.6-Others, Please Specify

2 Input Tax Restrictions Under KVAT Act 2003 9/1/2014

• (a) Input Tax shall not be deducted in calculating the net tax payable, in respect of.-

• 11(1)- Input Tax attributable to exempted goods exempted under section 5, except when they are exported

• 11(2)- Input Tax relatable to Schedule V, other than for (i) Resale, or (ii) manufacture or any other process of other goods for sale;

• 11(3)- Input Tax relatable to Notification by CCT or Govt, subject certain conditions

• 11(4)- Input Tax relatable to Capital Goods other than those falling under clause(2) or (3) except as provided in section 12


• 11(5)- Input Tax attributable to Stock Transfer/Branch transfer/consignment sale, as provided in section 14

• 11(6)- Input Tax relatable naphtha, LPG, Furnace oil, Superior Kerosene Oil, Kerosene and any other petroleum product, when used as fuel in motor vehicle,

• but when used as fuel in production of goods for export/taxable goods or captive power- Input Tax deducted as per section 14

• 11(7)- Input Tax relatable to Tax Paid under section 3(2) on the purchase of fuel

• 11(8)- Input Tax relatable to Tax Paid under section 3(2) on the purchase of goods other than fuel, until output tax is payable on such goods or other goods in which such goods are put to use, except when they are exported.

• 11(9) Input tax relatable – who is required to be registered but, has failed to register


• 11(b) IT shall not be deducted by an agent Purchasing or Selling goods on behalf of any other person other than non resident principal.

• (if any one selling/purchasing agents can claim input tax, not both.)

• 11©ITR towards the Sub contractor payment-Sec 11© from 1.4.2006-Introduced in Aug 2008/ 01.04.2012

• (Cannot claim both Input Tax and Sub Contractor Turnover of a particular RA Bill/Tax Invoice)

• ITR towards purchase of consumables, claimed as deduction- Sec 11©(ii)-Ex: Dyeing of Textiles


• Fifth Schedule-Input Tax Restricted Goods

• Five Entries

• 1. Motor Vehicles of all kinds…

• 2.Articles of Food & Drink….

• 3.All Electrical & Electronic Goods…except.

• 4.Textiles, Crockery, cutlery, carpets, paintings & artifacts

• 5. Furniture, including slotted angles…Construction materials including bricks, timber, wood ,glass, mirror..etc.,


• Tax Paid on purchases as notified by the Govt or Commissioner.

• FD 55 CSL 2005(6) Dt 23.03.2005(2005-2006)

• 1.All Input relating to liquor including beer, fenny, liquer and wine, narcotics, molasses, rectified spirit

• 2.Cement used as input - Pipe & fittings.

• FD 116 CSL 2006(10) Dt 31/03/2006

• 1.All Input relating to liquor including beer, fenny, liquer and wine, narcotics, molasses, rectified spirit

• 2.Cement used as input - Pipe & fittings

• 3.Naphtha used as a raw material in the manufacture of other goods.

• FD 373 CSL 06 Dt 15/12/2006

• Furnace oil used as fuel in captive power generation and for other purpose by a dealer engaged in the mfr of chemical fertilizers.

• FD 141 CSL 07(2) Dt 30/03/2007

• and wine, narcotics, molasses, rectified spirit, substituted wine and narcotics


• FD 141 CSL 07(1), Dt 30/03/2007(2007-2008)

• 1. Cement as input- relating to Cement Bricks

• 2. All goods-used as inputs- relating to molasses other than molasses used for resale

• 3. All goods-used as inputs- relating to denatured anhydrous alcohol, other than used for resale

• 4. All goods-used as inputs- relating to denatured spirit, other than used for resale [omitted w.e.f 01.04.2008 : FD 507 CSL 2007(VI) dt 25/03/2008]

• 5. All goods-used as inputs- relating to ethyl alcohol, other than used for resale

• 6.All goods-used as inputs- relating to rectified spirit, other than used for resale


• Section 12-Deduction of Input Tax..

• Subject to the restrictions in Section 11

• For Mfr and sale of taxable goods/ for export

• Is allowed, if the goods are purchased on or after the commencement of Act

• Is allowed, if the goods are purchased and used after the commencement of commercial production

• So if it is held in stock, without commercial production ?


• Section 13

• Subject to the restrictions in Section 11

• Goods purchased with in three months prior to

registration-Input Tax is allowed, if the goods

are in stock

• If they are sold/ or disposed otherwise before

registration, the Input tax is not allowed to that

extent


• Section 14- Deduction of Input Tax

• Towards goods specified in 11(a)(5) &(6), to

the extent of the Input tax charged at a rate

higher than four percent or any lower rate as

may be notified by the Government

• FD 115 CSL 2007(11) Dt 30/03/2007

• Input tax charged at a rate higher than three

percent


• Section 15 (4)/ Rules 135/141

• In case of a composite dealers, No Input tax is

allowed


• Section 17- Rules 131

• Subject to Section 11 and 5

• When the goods purchased are not identifiable to Stock Transfer/Consignment- if One to One relation is absent

• Goods purchased- put use for any other purpose(other than sale, manufacturing, processing, packing or sorting of goods), in addition to use in the course of his business

• Purchase of any petroleum product for use as fuel in production of any goods or captive power


• In accordance with rules or special method- approved by the commissioner,

• Special formula, if the formula does not fit

“Sale of Taxable Goods”: would be the aggregate of: Rule 3(1) (b)- Local sale turnover, ©, works contract TO, (d) Right To use TO

(e) hire purchase TO (f) CST sale/Export/Import TO,

(a)URD Purchase TO- Not included

-Relating to sale of goods and other than those exempt under section 5

“Total sales” : means Total Turnover less: Rule 3 (1)(a)- URD Purchase TO ,Rule 3(2)(e)- Sales/purchase returns, CST Subsequent sale TO,

Penultimate Purchase TO for export, Import Turnover


• Section 19- After deduction of Input Tax

• Prevent misuse of the benefit of input tax

deduction

• After deducting, the goods are not used in the

course of business,-Self consumption, lost,

destroyed.

• Applies to capital goods misuse also

• Repay the deducted input tax- on the market

value of the goods.


• Computer Work Stations

• Own Consumption

• Disposed other than by way of sales

• Related to warranty sales

• Purchase of Advertisement Materials

• Purchase of Sales Promotion Materials

• Claim of Insurance- when goods are destroyed

• Inputs used in power generation

• Return of goods


• Goods Purchased for own consumption

• Goods Purchased & disposed other than by

way of sale

• Goods Purchased and not used in

manufacture/processing


• Performance always comes from

passion and not from

pressure…..Always be passionate…..

• Love what you do and do what you

love…..

• Success is yours……..

Input Tax Restrictions Under KVAT Act 2003 18 9/1/2014

19

“Taxes shall be collected like honey bee collects honey from a flower”- Chanakya

Input Tax Restrictions Under KVAT Act 2003 9/1/2014

OUTPUT TAX, INPUT TAX AND NET TAX

(1) Output tax is relation to any registered dealer means the tax

payable under the Act in respect of taxable sales of goods made by

the dealer in the course of his business and includes tax payable

by a commission agent in respect of taxable sales of goods made on

behalf of such dealers subject to issue of a prescribed declaration

by such agent.

(2) Subject to input tax restriction specified in section 11,12, 14, 17

and 18 input tax in relation to any registered dealer means the tax

collected or payable under the Act on the sale to him of any goods

for use in the course of his business and includes the tax on the

sale of goods to his agent who purchases such goods on his behalf

subject to the manner as may be prescribed to claim input tax in

such cases.

(3) The net tax payable by a registered dealer in respect of each tax

period shall be the amount of output tax payable by him in that

period less the input tax deductible.

(4) No deduction of input tax shall be made unless a tax invoice debit

note on credit note in relation to a sale has been issued. Where

input tax exceeds the output tax, the excess amount shall be

adjusted or refunded.

RESTRICTIONS ON INPUT TAX REBATE:

(1) The entire amount of tax paid by a dealer under the Act has not

qualify for input tax rebate/ deduction from the output tax lent

governed by Sec. 11,12,13, 14, 17, 18, 19 and 20 of the Act. A

dealer has to claim input tax rebate in the return on revised return

within six months.

Sec.11 Input tax shall not be deducted in calculating the net tax

payable, in respect of

(i) Tax paid on purchases attributable to sale of exempted

goods exempted under Sec.5, except when such goods are

sold in the course of export.

Ex: Goods purchased for use in manufacturing of first

schedule goods.

(ii) Tax paid on purchase of goods specified in Fifth schedule put

to use for purposes other than resale or manufacture or any

other process of other goods for sale. Stock transfer, sent for

commission, exhibition cum sale outside the state, job work/

conversion

(iii) Tax paid on purchase of goods as may be notified by the

Government or commissioner. For Ex. Notification for inputs

relating to liquor, rectified spirit etc., cement used in pipes

and fittings. Naphtha used as raw material in manufacturing

of other goods.

(iv) Tax paid on capital goods other than those falling under

clause (2) and (3) except as provided under Sec.12. Input tax

paid on capital goods other than those mentioned in fifth

schedule qualify for deduction subject to Sec. 12 and Rule

133.

(a) A dealer carrying on business in goods generally exempt

not eligible to claim input tax except when exported.

(b) Input tax deduction allowable only after commencement of

commercial production in case of manufacturer and in

other cases on commencement of sale of taxable goods or

on sale of goods taxable or exempt in the course of export.

(c) In respect of eligible capital goods where input tax is

claimed, when sold within 3 years from the date of

claiming deduction, dealer cannot claim input tax credit.

However purchasing dealer can claim to the extent of tax

paid.

(5) Tax paid on purchase of goods that are dispatched outside the

state or used as inputs in the manufacturing, processing or

packing of other taxable goods despatched to a place outside the

state other than as a result of sale or purchase in the course of

interstate trade except as provided u/s.14. Input tax deduction

can be claimed on tax exceeding the rate under CST Act i.e. 2%.

Full input tax allowable on goods sent for manufacturing or

processing and brought to the state for sale or export.

(6) Tax paid on Naphtha, LPG, Furnace oil, Superior Kerosene oil,

Kerosene and any other petroleum product when used as fuel in

motor vehicles but when used as fuel in production of any goods for

sale in the course of export or taxable goods or captive power, input

tax shall be deducted as per sec.14.

(7) Tax paid u/s.3 (2) on the purchase of fuel.

(8) Tax paid u/s.3 (2) on the purchase of goods excluding fuel until

output tax is payable on such goods.

(9) Tax paid on purchase of goods by a dealer required to be registered

but has failed to register.

(10) Input tax shall not be deducted by an agent purchasing or

selling goods on behalf of any other person other than a non-

resident principal.

(11) Input tax shall not be deducted by any dealer executing

works contract

(i) In respect of amount paid or payable to any sub-contractor

that is claimed as deduction and amount actually expended

towards labour and other like charges i.e. claimed as

deductions.

Input tax shall not be deducted by a works contractor who is

claiming deductions on any amount paid or payable to any

sub contractors for execution of works. The principal

contractor who claims deductions of input tax paid to a sub-

contractor in determining the net tax liability is not entitled

to claim deduction of amount paid to sub-contractor.

(12) Sec.12: Input tax in respect of capital goods- by a dealer

dealing only in taxable goods, (b) dealing in exempted and also

taxable goods etc. as per Rule 131.

(ii) A dealer whose taxable turnover is less than prescribed in

Sec.22 (5 lakhs) is not eligible for the benefit of tax

deduction on capital goods. A dealer selling capital goods

within 3 years shall pay tax on sale consideration but not

eligible for input credit. A dealer stock transfer or despatches

for commission sales within 3 years, such dealer liable to pay

output tax on the prevailing market price of capital goods.

(13) Pre-Registration purchases – Input tax shall be allowed to a

dealer on tax charged by a seller on purchases effected within 3

months prior to the date of his registration but no input tax on the

goods sold or disposed prior to the date of registration.

(14) Special rebating scheme:- Input tax purchases of goods specified

in Sec. 11 (5) and 11(6) to the extent of tax charged at rate higher

than 2% or any lower rate as may be notified. (CST rate of tax as

per provisions of Sec.8(1) of CST Act).

(15) Sec.17- Partial rebating:- A dealer in taxable goods, exempt

goods, dealer despatching goods outside the state not as a result

of sale, puts to use input purchased for the purposes other than

sale or manufacture or processing, purchases petroleum products

for use as fuel in production of captive power or goods,

apportionment of input tax deductible shall be made in

accordance with the rule 131 (3) to arrive at non-deductible

input tax.

(16) Non-identifiable input tax on purchase of taxable goods for resale,

manufacture or processing goods for sale which cannot be

identified as relatable to transactions of sale, stock transfer /

consignment transfer, exempted goods etc., commissioner can

also specify a special formula for computing non-deductible input

tax.

(17) Sec.19 change in use after deduction of input tax:

Where a registered dealer has deducted any input tax on any

goods and those goods are not used in the course of his business

or lost or destroyed, any input tax deducted shall become

repayable in the period following which those goods were put such

other use.

Input tax payable shall be calculated on the prevailing market

value at the time of change of use.

Where a dealer after deducting input tax opts for composition of tax

u/s.15, the input tax deducted on the goods held in the stock shall

be repayable.

(18) Deduction of input tax on exports and interstate sales (and to

special economic zone units and developers) tax paid under the

act on purchase of input tax in respect of any goods sold in the

course of export or in the course of interstate trade shall be

deducted as per sec.10. Further, tax paid under the Act on

purchase of inputs by a registered dealer who is a developer of any

SEZ or a unit located in SEZ shall be refunded or deducted out of

output tax payable.

PAYMENT AND RECOVERY OF TAX

Every registered dealer shall furnish return and pay taxes payable

along with the return.

On application by a0 dealer, the Government or Commissioner may

permit, subject to condition prescribed, payment of tax or any other

amount due in installment.

Government by Notification defers payment of tax by a new

industrial unit subject to condition that Government has already

notified such deferment under the provisions of KST Act 1957.

Where a dealer has been offered deferment and liability equal to

other amount any such tax has been created as loan by the

Department of Industries and Commerce, then such tax shall be

deemed to have been paid.

Repayment of deferred tax does not attract interest.

Commissioner or Government subject to condition may remit the

whole or any part of the interest payable.

Where the amount paid falls short of aggregate of tax interest

payable, the amount so paid shall be adjusted towards interest

payable and the balance if any towards tax or any other amount

due.

Any amount unpaid under the Act after the due date of payment

shall be recoverable from the dealer

Any tax due under the Act, may without prejudice to any other

mode of collection be recovered:

(a) as if it were an arrears of land revenue

(b) by attachment and sale or by sale without attachment of any

property of such dealer by the prescribed authority, any

certificate issued by prescribed authority shall be deemed to be

decree of civil court and shall be executed in the same manner

as a decree of such court

(c) On application to any Magistrate, by such Magistrate as if it

were a fine imposed by him where

(d) a dealer has applied for appeal or revision, recovery proceedings

should not be taken or continued until the disposal of such

application.

Recovery through receivers – Liquidation proceedings, recovery

from certain other persons.

Section 48:- Tax to be First Charge on properly. The claim of the

State to recover the arrears shall have preference over the other

secured creditors except the claims of Central Government and

State Financial Corporation.

Recovery action cannot be initiated after expiry of 12 years from the

date on which amount due is finally determined.