Sub: CST Karasamadhana Scheme, 2018- reg.
READ: Para No. 171 of the Budget Speech of the Hon'ble Chief Minister and Finance Minister for the year 2018-19 made on 5th July, 2018.
PREAMBLE:
The Hon'ble Chief Minister and Finance Minister in his Budget Speech for the year 2018-19 made on 5th July, 2018 has announced a Karasamadhana Scheme to be introduced with a view to reduce the arrears under the provisions of the Central Sales Tax Act, 1956 (hereinafter referred to as the CST Act). Accordingly, a scheme for waiver of penalty and interest under the CST Act is required to be formulated. Hence, the Government is pleased to pass the following order.
The Government hereby accords approval to the scheme called CST Karasamadhana Scheme, 2018. Features of the scheme are as follows:
1. It grants waiver of 100% of arrears of penalty and interest payable by a dealer under the Central Sales Tax Act, 1956 relating to the assessments/re-assessments completed on or before 30th June, 2018.
2. Conditions: Grant of waiver of penalty and interest is subject to the following conditions:
2.1 Any dealer who makes full payment of arrears of tax on or before 30/10/2018 shall be granted waiver of 100% of arrears of penalty and interest payable. However, any penalty levied under section 10-A of the CST Act shall not be eligible for benefit of waiver under this Scheme.
2.2 Where the dealer has no arrears of tax but has arrears of penalty and interest only, relating to the assessments or re-assessments completed on or before 30th June 2018, such arrears of penalty and interest shall be waived.
2.3 Where a dealer has filed an appeal or any application against the order or proceedings relating to arrears of tax and arrears of penalty and interest before any Appellate Authority or Court and disposal of such application is still pending, the dealer shall withdraw such appeal or other application before availing the benefit of waiver of arrears of penalty and interest under the Scheme. The dealer shall file a declaration in support of withdrawal of appeal or other application in Annexure-II along with application for waiver of arrears of penalty and interest in Annexure-I appended to this Order. Such application and declaration shall be filed for each year separately.
2.4 After the appeal or other application is withdrawn, the amount of arrears of penalty and interest shall be considered for waiver under the Scheme. Any amount of penalty and interest paid at the time of filing an appeal or other application shall be eligible for adjustment towards arrears of tax outstanding for the assessment year for which the benefit of waiver is claimed. However, the dealer shall not be eligible for refund of any amount that may become excess as a result of such adjustment under this Scheme.
2.5 The dealer shall not file an appeal or other application before any Appellate Authority or Court or shall not seek rectification of orders/proceedings, after filing application for availing the benefits of this Scheme or after availing the benefits of this Scheme, for whatever reasons.
2.6 The dealer shall not be eligible to avail the benefits of this Scheme in relation to an order giving rise to arrears of tax, penalty and interest where:
a) State has filed an appeal before the Karnataka Appellate Tribunal or the Central Sales Tax Appellate Authority; or
b) State has filed an appeal or revision or any kind of application before the High Court or the Supreme Court; or
c) any competent authority has initiated suo motu revision proceedings under the CST Act as on 30/06/2018: or
d) any rectification is made after 30/06/2018.
3. Procedure: Procedure for this Scheme is as follows.-
3.1 The dealer opting for this Scheme shall submit application in the format Annexure-I appended to this Order under the CST Act for each year relating to the assessment/re-assessment concluded upto 30/06/2018, electronically through the website http://ctax.kar.nic.in or http://gst.kar.nic.in on or before 30/10/2018 in the manner as specified in the website. Duly signed copy of the said application downloaded shall be submitted to the concerned Assessing Authority as prescribed on or before 30/10/2018.
3.2 The concerned assessing authority shall scrutinize the application and calculate the actual arrears of tax, penalty and interest payable by the dealer upto the date of filing of application.
3.3 Where no discrepancy is noticed, the assessing authority shall proceed to pass the order in Annexure-IV within fifteen days from the date of receipt of the application and the same shall be served on the dealer within ten days from the date of passing of such order.
3.4(a) Where any discrepancy is found in the amount of arrears of tax and arrears of penalty and interest payable upto the date of application as declared by the dealer in his application, the assessing authority shall inform such discrepancy to the dealer, in Annexure-III, within 15 days from the date of filing of application. The dealer shall pay the tax as intimated by the assessing authority within fifteen days from the date of the intimation.
(b) On satisfaction that the applicant-dealer has paid the amount due as per Para 3.4 (a), the assessing authority shall pass the order, in Annexure-IV, waiving the amount of arrears of penalty and interest payable by the dealer for each assessment year separately.
(c) The order of waiver shall be passed within fifteen days from the date of making payment and the same shall be served on the dealer within ten days from the date of passing of such order.
3.5 The Assessing Authority shall assist the dealer in correct quantification of the amount of interest and penalty.
4. Removal of difficulties. - If any difficulty arises in implementation of this order, the Commissioner of Commercial Taxes may issue such instructions as are necessary or expedient for removing such difficulty.
By Order and in the Name of the Governor of Karnataka,
K. S. PADMAVATHI
Under Secretary to Government,
Finance Department (C.T-1).
ANNEXURE-1
(Government Order No. FD 38 CSL 2018, dated 04/08/2018)
Application for waiver of arrears of penalty and interest under the CST Karasamadhana Scheme, 2018
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I.........................do hereby solemnly declare that to the best of my knowledge and belief the information furnished above is true and complete.
2. Copy of the relevant assessment/reassessment order and penalty order and proof of withdrawal of appeal or any other proceeding to be enclosed to the copy of the application required to be submitted to the Assessing Authority. 3. Strike out whichever is not applicable.
ANNEXURE-II
Declaration
I, Sri/Smt/Ms ............................ do hereby solemnly declare that I am / we are a assessee registered under
the Central Sales Tax Act, 1956 TIN/R.C. No. ............................on the files of the office of the .....................
I have withdrawn the appeal/other application filed against the assessment / reassessment
or other proceedings concluded for the year/tax periods .................of the assessment year under the CST
Act which was pending before .............................(specify the authority) to avail of the benefit of the CST
Karasamadhana Scheme, 2018 offered by the Government of Karnataka vide order No ..................... dated on ................. I enclose the documentary proof for the withdrawal of the
appeal or other application.
2. Strike out whichever is not applicable.
ANNEXURE-III
(Government Order No. FD 38 CSL 2018, dated 04/08/2018}
Intimation by the Assessing Authority regarding discrepancy in the Application submitted by the dealer
The application and declaration submitted by the applicant dealer are verified and found that the tax due which is required to be paid as per the assessment records is more than the tax admitted and paid along with the application submitted vide Application Reference Number ..............dated .........................
The details are as under:
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No ...........dated.......................
ANNEXURE-IV
Order of Waiver
The application and declaration are verified and the assessee is found eligible for waiver of the arrears of penalty and interest for the assessment/reassessment in terms of Government order No ................dated .............. and the same is accordingly ordered to be waived.