Whereas the draft of the following rules further to amend the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976 was published as required by section 33 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976) in notification No. FD 149 CSL 2006, dated 12th June, 2006, in Part IV-A of the Karnataka Gazette (Extraordinary), dated 12th June, 2006 inviting objections or suggestions from all the persons likely to be affected thereby and notice was given that the said draft will be taken into consideration after ten days from the date of publication in the official Gazette.
And, whereas the said Gazette was made available to the public on 12th June, 2006.
And, whereas no objections and suggestions have been received on the said draft.
Now, therefore in exercise of the powers conferred by section 33 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 (Karnataka Act 35 of 1976), the Government of Karnataka hereby makes the following rules, namely:-
RULES
1. Title and commencement.-
(1) These rules may be called the Karnataka Tax on Profession, Trades, Callings and Employments (Amendment) Rules, 2006.
(2) They shall be deemed to have come into force with effect from the first day of April, 2006.
2. Amendment of Rule 19.-
In the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976 (hereinafter referred to as the said rules), in rule 19,-
(1) in the heading, after the words "enrolled persons", the words "and deduction of tax in the case of certain enrolled persons" shall be inserted;
(2) after sub-rule (3), the following sub-rules shall be inserted, namely:-
"(4) The statement specified in sub-section (5) of section 10 shall be in Form 24.
(5)(a) The certificate specified in sub-section (7) of section 10 shall be in Form 25 and shall be obtained by the insurance company or bank or other financial institution making deduction under sub-section (3) of section 10 from the jurisdictional assessing authority on payment of one rupee per form.
(b) The certificate in Form 25 shall be issued within fifteen days from the end of the month in which deduction was made.
(c) Every such form so obtained by the insurance company or bank or other financial institution shall be kept by him in safe custody and he shall be personally responsible for the loss, destruction or theft of any such form or the loss of revenue to the Government, resulting directly or indirectly from such loss, destruction or theft.
(d) Every insurance company or bank or other financial institution issuing certificate in Form 25 shall maintain for each year separately an account showing the certificates issued, in Form 26.
(e) If any Form 25 is lost, destroyed or stolen, the insurance company or bank or other financial institution shall report the fact to the assessing authority within a week of such loss, destruction or theft and shall make appropriate entries in the register maintained in Form 26 and take such other steps including the furnishing of an indemnity bond and issue of public notice of the loss, destruction or theft as the assessing authority may direct.
(f) Any insurance company or bank or other financial institution who has obtained Form 25 shall not either directly or any other person, transfer the same to another person.
(g) As soon as a report is received from the insurance company or bank or other financial institution regarding the loss, destruction or theft of Form 25, the assessing authority shall, within ten days, report to the jurisdictional Joint Commissioner of Commercial Taxes and also to take action to notify such loss, destruction or theft in the Official Gazette.
(h) The register maintained in Form 26 along with Form 25 shall be open for inspection by the assessing authority or any other officer empowered under Section 21.
(i) Any un used declaration form held in stock with an insurance company or a bank or other financial institution shall be surrendered to the assessing authority on discontinuance of business by the insurance company or bank or other financial institution."
3. Substitution of rule 30.-
For rule 30 of the said rules, the following rule shall be substituted, namely:-
"30. Offences and composition of offences.-
(1) The assessing authority may institute prosecution in respect of an offence specified in section 23 in a Court, not inferior to that of a Magistrate of the First Class.
(2) The assessing authority shall exercise the powers specified in Section 26 in respect of such offence subject to the control and direction of the Joint Commissioner."
4. Insertion of new Part VI.-
After rule 30 of Part V of the said rules so amended, the following Part and Rules shall be inserted, namely.-
"Part VI
Procedure for Recovery
31. Definitions.-
In this Part, unless the context otherwise requires,
(1) 'Certificate' means a certificate of default of payment of tax received by the Tax Recovery Officer.
(2) 'Defaulter' means the person named in the certificate;
(3) 'Execution' in relation to a certificate, means recovery of arrears in pursuance of the certificate;
(4) 'Movable property' includes growing crops;
(5) 'Share in a corporation' includes stock, debentures or bonds;
(6) 'Tax Recovery Officer' means the assessing authority or any other officer authorized by the Commissioner to exercise powers under clause (b) of sub-section (1) of section 13 or under clause (aa) of sub-section (3) of section 13 of the Karnataka Sales Tax Act, 1957 (Karnataka Act 25 of 1957).
32. (1) Where a person is in default, or is deemed to be in default, in making a payment of tax or any other amount due under the Act, the authority concerned may forward to the jurisdictional Tax Recovery Officer a certificate in Form 27.
(2) The authority concerned shall forward a certificate in Form 27, in respect of any additional amount that becomes due in cases where a certificate in Form 27 has already been issued and the amount due covered by such certificate is not recovered fully, to the Tax Recovery Officer to whom such certificate was forwarded earlier notwithstanding that the additional amount or total amount due exceeds the limit specified in sub-rule (1).
(3) The Tax Recovery Officer, on receipt of the certificate in Form 27, shall proceed to recover from such defaulter the amount specified therein in accordance with the provisions in this Part.
(4) The authority concerned may issue a certificate under sub-rule (1) notwithstanding that, proceedings for recovery of the amount by any other mode has been taken.
33. When a certificate has been received by the Tax Recovery Officer, he shall cause to be served upon the defaulter a notice in Form 28 requiring the defaulter to pay the amount specified in the certificate within fifteen days from the date of service of the notice.
34. (1) The certificate shall not be executed until the period of fifteen days has elapsed since the date of the service of the notice.
(2) Where the Tax Recovery Officer is satisfied that the defaulter is likely to conceal, remove or dispose of the whole or any part of such of his movable property as would be liable to attachment or distraint in execution of a decree of a Civil Court, and that the realization of the amount of the certificate would in consequence be delayed or obstructed, he may at any time, for reasons to be recorded in writing, attach to or distrain on the whole or any part of such property.
(3) If such defaulter furnishes security to the satisfaction of the Tax Recovery Officer, such attachment or distraint shall be cancelled from the date on which such security is accepted by the Tax Recovery Officer.
35. If the amount mentioned in the notice is not paid within the time specified therein, the Tax Recovery Officer shall proceed to realize the amount by.-
(1) attachment or distraint and sale of the defaulter's moveable property; and
(2) attachment and sale of the defaulter's immovable property.
36. There shall be recoverable in the proceedings in execution of every certificate.-
(1) interest at the rate of six per cent per annum from the day commencing after the end of the end of fifteen days from the date of service of notice in Form 28; and
(2) all charges incurred in respect of.-
(a) the service of notice upon the defaulter to pay the arrears, warrants and other processes, and
(b) all other proceedings taken for realizing the arrears.
37. (1) Where property is sold in execution of a certificate, there shall vest in the purchaser merely the right, title and interest of the defaulter at the time of the sale, even though the property itself is specified.
(2)Where immovable property is sold in execution of a certificate, and such sale has become absolute, the purchaser's right, title and interest shall be deemed to have vested in him when the property is sold, and not from the time when the sale becomes absolute.
38. No suit shall be maintained against any person claiming title under a purchase certified by the Tax Recovery Officer in the manner laid down in this Part on the ground that the purchase was made on behalf of the plaintiff or on behalf of some one through whom the plaintiff claims.
39. (1) Whenever assets are realized, by sale or otherwise in execution of a certificate, the amounts so realized shall.-
(a) first, cover the costs incurred by the authority concerned;
(b) next, be paid to the authority concerned for the amount due under the certificate in execution of which the assets were realized;
(c) next, be paid to the authority concerned for any other amount due under the Act or these rules; and
(d) any balance, be paid to the defaulter.
(2) If the defaulter disputes any claim made by the authority concerned to receive any amount referred to in clause (c) above, the Tax Recovery Officer shall resolve the dispute.
40. (1) Except as otherwise expressly provided in the Act and these rules, every question arising between the authority concerned and the defaulter or their representatives relating to the execution, discharge or satisfaction of a certificate, or relating to the confirmation or setting aside of a sale held in execution of such certificate, shall be resolved by the order of the Tax Recovery Officer before whom such question arises.
(2) A suit may be brought in a Civil Court in respect of any such question upon the ground of fraud.
41. (1) All such property as is by the Code of Civil Procedure, 1908 (5 of 1908), exempted from attachment and sale in execution of a decree of a Civil Court, shall be exempted from attachment or distraint and sale under this Part.
(2) The Tax Recovery Officer's decision as to what property is entitled to exemption shall be final.
42. (1) Where any claim is preferred, or any objection is made to the attachment, distraint or sale of any property in execution of a certificate, on the ground that such property is not liable to such attachment, distraint or sale, the Tax Recovery Officer shall proceed to investigate the claim or objection.
(2) The Tax Recovery Officer shall not investigate where he considers that the claim or objection was itself deliberately or unnecessarily delayed.
(3) Where the property to which the claim or objection applies has been advertised for sale, the Tax Recovery Officer ordering the sale may postpone it pending the investigation of the claim or objection, upon such terms, security or otherwise.
(4) The claimant or objector must adduce evidence to show that.-
(a) in the case of immovable property, on the date of the service of notice issued under this Part, to pay the arrears, or
(b) in the case of movable property, on the date of the distraint or attachment,
he had some interest in, or was in possession of, the property in question.
(5) Where, upon investigation, the Tax Recovery Officer is satisfied that, for the reason stated in the claim or objection, such property was not, on the said date, in the possession of the defaulter or of any other person on his behalf or that, being in the possession of the defaulter at the said date, it was in his possession, not on his own account or as his own property, but on account of or in trust for any other person, or partly on his own account and partly on account of some other person, the Tax Recovery Officer shall make an order releasing the property, wholly or to such extent as he thinks fit, from distraint or attachment or sale.
(6) Where the Tax Recovery Officer is satisfied that the property was, on the said date, in the possession of the defaulter as his own property and not on account of any other person, or was in the possession of some other person in trust for him, or in the occupancy of a tenant or other person paying rent to him, the Tax Recovery Officer shall disallow the claim.
(7) Where a claim or an objection is preferred, the party against whom an order is made may institute a suit in a Civil Court to establish the right which he claims to the property in dispute, but subject to the result of such suit, the order of the Tax Recovery Officer shall be final.
43. (1) Where the amount due with costs and all charges and expenses, resulting from the attachment to or distraint on any property, or incurred in order to hold a sale, are paid to the Tax Recovery Officer, or
(2) where the certificate is cancelled,
the attachment or distraint shall be deemed to be withdrawn, and in the case of immovable property, the withdrawal shall, if the defaulter so desires, be proclaimed at his own expense, and a copy of the proclamation shall be affixed in the manner provided by this Part for a proclamation of sale of immovable property.
44. (1) Any deficiency of price which may happen on a resale, by reason of the purchaser's default, and all expenses resulting from such resale, shall be certified by the Tax Recovery Officer and shall, at the instance of either the authority concerned or the defaulter, be recoverable from the defaulting purchaser under the procedure provided under this Part.
(2) An application filed after fifteen days from the date of resale shall not be entertained.
45. (1) The Tax Recovery Officer may, in his discretion, adjourn any sale hereunder to a specified day and hour.
(2) Where a sale of immovable property is adjourned under sub-rule (1) for a longer period than one calendar month, a fresh proclamation of the sale under this Part shall be made, unless the defaulter consents to waive it.
(3) Every sale shall be stopped if, before the lot is knocked down, the arrears and costs, including the costs of the sale, are paid to the Tax Recovery Officer.
46. (1) Where a notice has been served on a defaulter under rule 56, the defaulter or his representative in interest shall not be competent to mortgage, charge, lease or otherwise deal with any property belonging to him, except with the permission of the Tax Recovery Officer, nor shall any Civil Court issue any process against such property in execution of a decree for the payment of money.
(2) Where an attachment has been made under this Part, any private transfer or delivery of the property attached or of any interest therein and any payment to the defaulter of any debt, dividend or other monies contrary to such attachment, shall be void as against all claims enforceable under the attachment.
47. Any officer or other person having any duty to perform in connection with any sale under this Part shall not, either directly or indirectly, bid for, acquire or attempt to acquire any interest in the property sold.
48. A sale under this Part shall not take place on a Sunday or other general holidays recognized by the State Government or any day which has been notified by the State Government to be a local holiday for the area in which the sale is to take place.
49. The Tax Recovery Officer may apply to the officer-in-charge of the nearest police station for such assistance as may be necessary in the discharge of his duties, and the authority to whom such application is made shall depute a sufficient number of police officers for furnishing such assistance.
Attachment or distraint and sale of movable property
50. The Tax Recovery Officer, attaching to or distraining on any movable property, shall prepare a warrant in Form 29 specifying the name of the defaulter, and the amount to be realized and cause a copy of the warrant to be served on the defaulter.
51. If, after service of the copy of the warrant, the amount is not paid forthwith, the Tax Recovery Officer shall proceed to attach to or distrain on the movable property of the defaulter.
52. (1) Where any movable property, other than agricultural produce, proceeded against is in the possession of the defaulter, it shall be seized, and the Tax Recovery Officer shall keep the property in his own custody or the custody of one of his subordinates or arrange for its safe custody, and shall be responsible for due custody thereof.
(2) Where the property seized is subject to speedy and natural decay, or where the expense of keeping it in custody is likely to exceed its value, the Tax Recovery Officer may sell it forthwith.
53. Where the property proceeded against is agricultural produce, it shall be attached by affixing a copy of the warrant.-
(1) on the land on which such crop has grown, if such produce is a growing crop; or
(2) on the threshing floor, the place for treading out grain or the like, or fodder-stack, on or in which it is deposited, if such produce has been cut or gathered,
and another copy on the outer door or on some other conspicuous part of the house in which the defaulter ordinarily resides, or on the outer door or on some other conspicuous part of the house in which he carries on business or personally works for gain, or in which he is known to have last resided or carried on business or personally worked for gain, and the produce shall thereupon be deemed to have passed into the possession of the Tax Recovery Officer.
54. (1) Where agricultural produce is distrained, the Tax Recovery Officer shall make such arrangements for the custody, watching, tending, cutting and gathering thereof, and the authority concerned shall bear such amount as the Tax Recovery Officer shall require in order to defray the cost of such arrangements.
(2) Subject to such conditions as may be imposed by the Tax Recovery Officer in this behalf, either in the order of attachment or in any subsequent order, the defaulter may tend, cut, gather and store the produce and do any other act necessary for maturing or preserving it and, if the defaulter fails to do all or any of such acts, any person appointed by the Tax Recovery Officer in this behalf may, subject to the like conditions, do all or any of such acts, and the costs incurred by such person shall be recoverable from the defaulter as if they were included in the certificate.
(3) Agricultural produce attached as a growing crop shall not be deemed to have ceased to be under attachment or to require re-attachment merely because it has been severed from the soil.
(4) Where an order for the attachment of a growing crop has been made at a considerable time before the crop is likely to be fit to be cut or gathered, the Tax Recovery Officer may suspend the execution of the order for such time as he thinks fit, and may, in his discretion, make a further order prohibiting the removal of the crop pending execution of the order of attachment.
(5) A growing crop which is not fit for storing shall not be attached under this rule within twenty days before the time at which it is likely to be fit to be cut or gathered.
55. (1) A debt not secured by a negotiable instrument, a share in a corporation, or other movable property not in the possession of the defaulter except for property deposited in, or in the custody of, any Court, shall be attached, and the attachment shall be made by a written order in Form 30 prohibiting.-
(a) in the case of a debit, the creditor from recovering the debt and the debtor from making payment thereof until receipt of a further order from the Tax Recovery Officer;
(b) in the case of a share, the person in whose name the share may be standing from transferring the same or receiving any dividend thereon;
(c) in the case of any other movable property, the person in possession of the same from giving it to the defaulter.
(2) A copy of such order shall be affixed on some conspicuous part of the office of the Tax Recovery Officer, and another copy shall be sent, in the case of debt, to the debtor, and in the case of shares, to the proper officer of the corporation and in the case of other movable property, to the person in possession of the same.
(3) A debtor, prohibited under clause (a) of sub-rule (1), may pay the amount of his debt to the Tax Recovery Officer, and such payment shall be deemed as paid to the defaulter.
56. (1) Where the property proceeded against is a decree of a Civil Court for the payment of money or for sale in enforcement of a mortgage or charge, it shall be attached, and attachment shall be made by the issue of a notice in Form 31 to the Civil Court requesting the Civil Court to stay the execution of the decree unless and until.-
(a) the Tax Recovery Officer cancels the notice; or
(b) the authority concerned or the defaulter applies to the Court receiving such notice to execute the decree.
(2) Where a Civil Court receives an application under clause (b) of sub-rule (1), it shall, on the application of the authority concerned or the defaulter, and subject to the provisions of the Code of Civil Procedure, 1908 (Central Act 5 of 1908), proceed to execute the attached decree, and apply the net proceeds in satisfaction of the certificate.
(3) The authority concerned shall be deemed to be the representative of the holder of the attached decree and to be entitled to execute such attached decree in any manner lawful for the holder thereof.
57. Where the property proceeded against consists of the share or interest of the defaulter in movable property belonging to him and another as co-owner, it shall be attached and the attachment shall be made by a notice in Form 32 to the defaulter prohibiting him from transferring the share or interest or charging it in any way.
58. Where the property is a negotiable instrument not deposited in a Court or in the custody of a public officer, it shall be distrained by the Tax Recovery Officer.
59. (1) Where the property proceeded against is in the custody of any Court or public officer, it shall be attached and the attachment shall be made by a Tax Recovery Officer by a notice in Form 33 to such Court or officer, requesting that such property, and any interest or dividend becoming payable thereon, should be held subject to his further orders.
(2) Where such property is in the custody of a Court and a question of title or priority arising between the authority concerned and any other person not being the defaulter, claiming to be interested in such property by virtue of any assignment, attachment or otherwise, shall be determined by such Court.
60. (1) Where the property proceeded against consists of an interest of the defaulter being a partner in the partnership property, the Tax Recovery Officer may make an order charging the share of such partner in the partnership property and profits with such payment of the amount due under the certificate, and may, by the same or subsequent order, appoint a receiver of the share of such partner in the profits, whether already declared or accruing, and of any other money which may become due to him in respect of the partnership, direct accounts and enquiries and make an order for the sale of such interest or such other order as the circumstances of the case may require.
(2) The other partners shall be at liberty at any time to redeem the interest charged or, in the case of a sale being directed, to purchase the same.
61. In the case of distraint, the property seized shall be, as far as possible, proportionate to the amount specified in the warrant.
62. In the case of distraint of movable property by actual seizure, the Tax Recovery Officer shall, after seizing the property, prepare an inventory of all the property attached, specifying in it the place where it is lodged or kept, and a copy of the inventory shall be delivered to the defaulter.
63. Attachment by seizure shall be made after sunrise and before sunset and not otherwise.
64. The Tax Recovery Officer may break open any inner or outer-door of any building and enter any building in order to seize any movable property, if he has reasonable grounds to believe that such building contains movable property liable to seizure under the warrant and he has notified his authority and intention of breaking open if admission is not given, and he shall give all reasonable opportunity to women to withdraw.
65. The Tax Recovery Officer may direct that any movable property attached or distrained under this Part, or such portion thereof as may seem necessary to satisfy the certificate, shall be sold.
66. When any sale of movable property is ordered by the Tax Recovery Officer, he shall issue a proclamation in Form 34 in the language of the District where the intended sale takes place, specifying the time and place of sale and whether the sale is subject to confirmation or not.
67. (1) A proclamation under rule 66 shall be made public by the beat of a drum or other customary mode,
(a) in the case of property distrained.-
(i) in the village in which the property was seized or, if the property was seized in a town or city, in the locality in which it was seized; and
(ii) at such other places as the Tax Recovery Officer may direct; and
(b) in the case of property attached other than by distraint, in such places as the Tax Recovery Officer may direct.
(2) A copy of the proclamation shall also be affixed in a conspicuous part of the office of the Tax Recovery Officer.
68. Except where the property is subject to speedy and natural decay or when the expense of keeping it in custody is likely to exceed its value, no sale of movable property under this Part shall, without the consent in writing of the defaulter, take place until after the expiry of at least fifteen days from the date on which a copy of the sale proclamation was affixed in the office of the Tax Recovery Officer.
69. (1) When the property to be sold is agricultural produce,
(a) sale shall be held if such produce is a growing crop, on or near the land on which such crop has grown; or
(b) sale shall be held if such produce has been cut or gathered, at or near the threshing floor or place of treading out grain or the like, or fodder-stack on or in which it is deposited; or
(c) the Tax Recovery Officer may direct that the sale to be held at the nearest place of public resort, if he is of opinion that the produce is thereby likely to sell to greater advantage.
(2) Where, on the produce being put up for sale.-
(a) a fair price in the estimation of the Tax Recovery Officer is not offered for it; and
(b) the owner of the produce, or a person authorized to act on his behalf, applies to have the sale postponed till the next day or, if a market is held at the place of sale, the next market day,
the sale shall be postponed accordingly, and shall be then completed, whatever price may be offered for the produce.
70. (1) Where the property to be sold is a growing crop and such crop is fit for storing but is not stored, the day of sale shall be so fixed as to make the crop ready for storing before the arrival of such day, and the sale shall not be held until the crop has been cut or gathered and is ready for storing.
(2) Where the crop is not fit for storing or can be sold to a greater advantage in an unripe state, it may be sold before it is cut and gathered, and the purchaser shall be entitled to enter on the land, and to do all that is necessary for the purpose of tending or cutting or gathering the crop.
71. The property shall be sold by public auction in one or more lots as the Tax Recovery Officer may consider advisable and, if the amount to be realized by sale is satisfied by the sale of a portion of the property, the sale shall be immediately stopped with respect to the remainder of the lots.
72. (1) Where movable property is sold by public auction, the price of each lot shall be paid at the time of sale or as soon after as the Tax Recovery Officer directs and, in default of payment, the property shall forthwith be re-sold.
(2) On payment of the purchase money, the Tax Recovery Officer shall grant a certificate specifying the property purchased, the price paid and the name of the purchaser and the sale shall become absolute.
(3) Where the movable property to be sold is a share in goods belonging to the defaulter and a co-owner, and two or more persons, of whom one is such co-owner respectively, bid the same sum for such property or for any lot, the bidding shall be deemed to be the bidding of the co-owner.
73. Any irregularity in publishing or conducting the sale of movable property shall not vitiate the sale, but any person sustaining substantial injury by reason of such irregularity at the hands of any other person may institute a suit in a Civil Court against him, for compensation, or if such other person is the purchaser, for the recovery of the specific property and for compensation in default of such recovery.
74. Notwithstanding anything contained in this Part, where the property to be sold is a negotiable instrument or a share in a corporation, the Tax Recovery Officer may, instead of selling it by public auction, sell such instrument or share through a broker.
75. Where the property attached to or distrained on is current coins or currency notes, the Tax Recovery Officer may, at any time during the continuance of the attachment or distraint, direct that such coins or notes, or a part thereof sufficient to satisfy the certificate, be paid over to the authority concerned.
Attachment and sale of immovable property
76. Attachment of the immovable property of the defaulter shall be made by an order in Form 35 prohibiting the defaulter from transferring or charging the property in any way and prohibiting all persons from taking any benefit under such transfer or charge, and a copy of the order of attachment shall be served on the defaulter.
77. The order of attachment shall be proclaimed at some place on or adjacent to the property attached by beat of drum or other customary mode, and a copy of the order shall be affixed on a conspicuous part of the property and on the notice board of the office of the Tax Recovery Officer.
78. Where any immovable property is attached under this Part, the attachment shall relate back to, and take effect from, the date on which the notice to pay the arrears, issued under this Part, was served upon the defaulter.
79. (1) The Tax Recovery Officer may direct that any immovable property which has been attached or such portion thereof as may seem necessary to satisfy the certificate, shall be sold.
(2) Where any immovable property is ordered to be sold, the Tax Recovery Officer shall cause a proclamation, in Form 36 of the intended sale, to be made in the language of the district.
80. A proclamation of sale of immovable property shall be made after notice to the defaulter, and shall state the time and place of sale and shall specify, as fairly and accurately as possible,-
(1) the property to be sold;
(2) the revenue, assessed upon the property or any part thereof;
(3) the amount for recovery of which the sale is ordered; and
(4) any other thing which the Tax Recovery Officer considers is material for a purchaser to know, in order to judge the nature and value of property.
81. (1) Every proclamation for the sale of immovable property shall be made at some place on or near such property by beat of drum or other customary mode, and a copy of the proclamation shall be affixed on a conspicuous part of the property and also on a notice-board at the office of the Tax Recovery Officer.
(2) Where the Tax Recovery Officer so directs, such proclamation shall also be published in the Official Gazette or in a local newspaper, or in both, and the cost of such publication shall be deemed to be part of the costs of the sale.
(3) Where the property is divided into lots for the purpose of being sold separately, it shall not be necessary to make a separate proclamation for each lot, unless proper notice of the sale cannot, in the opinion of the Tax Recovery Officer, otherwise be given.
82. A sale of immovable property under rule 79 shall not, without the consent in writing of the defaulter, take place until after the expiration of at least thirty days calculated from the date on which a copy of the proclamation of the sale has been affixed on the property or in the office of the Tax Recovery Officer, whichever is later.
83. The sale shall be by public auction to the highest bidder and shall be subject to confirmation by the Tax Recovery Officer.
84. (1) On every sale of immovable property, the person declared to be the purchaser shall pay, immediately after such declaration, a deposit of twenty five per cent of the amount of his purchase money, to the Tax Recovery Officer, and in default of such deposit, the property shall forthwith be resold.
(2) The full amount of purchase money payable shall be paid by the purchaser to the Tax Recovery Officer on or before the fifteenth day from the date of the sale of the property.
85. In default of payment within the period specified in sub-rule (2) of rule 84, the deposit shall, after defraying the expenses of the sale, be forfeited to the Government by the Tax Recovery Officer, and the property shall be resold, and the defaulting purchaser shall forfeit all claims to the property or to any part of the sum for which it may subsequently be sold.
86. All persons bidding at the sale shall be required to declare if they are bidding on their own behalf or on behalf of their principals, and in the latter case, they shall file their authority, and in default, their bids shall be rejected.
87. (1) Where immovable property has been sold in execution of a certificate, the defaulter, or any person whose interests are affected by the sale, may at any time within thirty days from the date of the sale, apply to the Tax Recovery Officer to set aside the sale, on his depositing,-
(a) for payment to the authority concerned, the amount specified in the proclamation of sale for the recovery of which the sale was ordered, with interest thereon at the rate of six percent per annum calculated from the date of the proclamation of sale to the date when the deposit made; and
(b) for payment to the purchaser, as penalty, a sum equal to five per cent of the purchase money .
(2) Where a person makes an application under rule 88 for setting aside the sale of his immovable property, he shall not, unless he withdraws the application, be entitled to make or pursue an application under this rule.
88. (1) Where immovable property has been sold in execution of a certificate, the authority concerned, the defaulter or any person whose interests are affected by the sale, may, at any time within thirty days from the date of sale, apply to the Tax Recovery Officer to set aside the sale of the immovable property on the ground that notice was not served on the defaulter to pay the arrears as required by this Part or on the ground of a material irregularity in publishing or conducting the sale.
(2) A sale shall be set aside on any such ground, if the Tax Recovery Officer is satisfied that the applicant has sustained substantial injury by reason of the non-service or irregularity.
(3) An application made by a defaulter without depositing the amount recoverable from him in execution of the certificate shall be disallowed.
89. At any time within thirty days of the sale, the purchaser may apply to the Tax Recovery Officer to set aside the sale on the ground that the defaulter had no saleable interest in the property sold.
90. (1) Where no application is made for setting aside the sale under the foregoing rules, or where such an application is made and disallowed by the Tax Recovery Officer, the Tax recovery Officer shall, if the full amount of the purchase money has been paid, make an order confirming the sale, and thereupon the sale shall become absolute.
(2) Where such application is made and allowed and where, in the case of an application made to set aside the sale on deposit of the amount and penalty and charges, the deposit is made within thirty days from the date of the sale, the Tax Recovery Officer shall make an order setting aside the sale.
(3) An order shall be made under sub-rule (2), after a notice of the application has been given to the persons affected thereby.
91. When a sale of immovable property is set aside, any money paid or deposited by the purchaser on account of the purchase, together with any penalty, deposited for payment to the purchaser, and such interest as the Tax Recovery Officer may determine, shall be paid to the purchaser.
92. (1) Where a sale of immovable property has become absolute, the Tax Recovery Officer shall grant a certificate in Form 37 specifying the property sold, and the name of the person who, at the time of sale, is declared to be the purchaser.
(2) Such certificate shall state the date on which the sale became absolute.
93. (1) Where an order for the sale of immovable property has been made, if the defaulter can satisfy the Tax Recovery Officer that there is a reason to believe that the amount of the certificate may be raised by the mortgage or lease or private sale of such property, or some part thereof, or of any other immovable property of the defaulter, the Tax Recovery Officer may, on the defaulter's request in writing, postpone the sale of the property comprised in the order for sale, on such terms and for such period as he thinks proper, to enable him to raise the amount.
(2) In such a case,-
(a) the Tax Recovery Officer shall grant a certificate to the defaulter, authorizing him, within a period to be specified therein, and notwithstanding anything contained in this Part, to make the proposed mortgage, lease or sale;
(b) all monies payable under such mortgage, lease or sale shall be paid, to the Tax Recovery Officer; and
(c) a mortgage, lease or sale under this Rule shall become absolute after it is confirmed by the Tax Recovery Officer.
94. Every resale of immovable property, in default of payment of the purchase money within the period allowed for such payment, shall be made after the issue of a fresh proclamation in the manner and for the period herein before provided for the sale.
95. Where the property sold is a share of undivided immovable property, belonging to the defaulter and a co-sharer, and two or more persons, of whom one is such co-sharer, respectively bid the same sum for such property or for any lot, the bid shall be deemed to be the bid of the co-sharer.
96. Every Tax Recovery Officer, or others acting under this Part, shall have the powers of a Civil Court while trying a suit, for the purpose of receiving evidence administering oaths, enforcing the attendance of witness and compelling the production of documents.
97. (1) An appeal from any original order passed by the Tax Recovery officer under this Part not being an order which is final, shall lie to the jurisdictional Joint Commissioner authorized by the Commissioner in this behalf.
(2) Every appeal under this rule must be made within thirty days from the date of the order appealed against.
(3) Pending the decision of any appeal, execution of the certificate may be stayed if the appellate authority so directs.
98. Any order passed under this Part may, after notice to all persons interested, be reviewed by the officer who made the order, or by his successor-in-office, on account of any mistake apparent from the record.
99. Where any person has, under this Part, become surety for the amount due by the defaulter, he may be proceeded against under this Part as if he were the defaulter.
100. Nothing in this Part shall affect any provision of the Act under which the tax is a first charge upon any asset."
5. Insertion of new forms.-
After Form 23 of the said rules, the following new forms shall be inserted, namely:-
"FORM 24
[See Rule 19(4)]
Monthly statement of tax deducted at source in respect of certain enrolled persons for the month of ...........
DECLARATION
I, .................... do hereby solemnly declare that to the best of my knowledge and belief, the information furnished in the statement is true and complete.
FORM 25
[See Rule 19(5)(a)]
Certificate of Tax Deduction
Certified that the tax deducted as above have been remitted by us into Government Treasury* / Bank* / to the ............ (Name of the office where the deducted tax is remitted)*, in accordance with section 18 and that the particulars furnished above are true and correct to the best of my knowledge.
____
FORM 26
[See rule 19(5)(d)]
Register of declaration in Form 25
FORM 27
[See rule 32(1)]
CERTIFICATE OF TAX AND OTHER AMOUNTS DUE
To
The Tax Recovery Officer,
.....................................
Sir,
This is to certify that .................. (Name)................... (RC / EC No.)
(Address)...............................................................................................
is in arrears of tax / penalty/interest* as shown in the following table. I request you to take action to recover the said amount of Rs............ under sub-rule (1) of Rule 32 of the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976.
TABLE
*Note: Strike out whichever is not applicable.
___
FORM 28
(See rule 33)
NOTICE
................................(Name)...................... (RC / EC No.)
(Address)...........................................................
Take notice that you have failed to pay Rs.................. being the arrears of tax / penalty levied on/payable by* you under the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976, the details of which are furnished in the following table. If the said amount is not paid within a period of fifteen days from the date of service of this notice, it shall be recovered by attachment or distraint and sales of your movable or immovable property. In addition to the said amount you will also be liable to pay the expenses involved in the attachment, distraint and/or sale of your movable or/and immovable property.
FORM 29
(See rule 50)
Warrant of distraint or attachment
Whereas ................................ (Name)...................... (RC/EC-No.) (Address) ................................................ has failed to pay Rs ...................... being the tax / penalty / interest*, the details of which are furnished in the table below, the movable property of the said .................. as set forth in schedule hereunto annexed or which shall be found by me shall be distrained or attached and sold unless the said .................. pays the said sum of Rs......... (in words)..................... rupees with Rs.................. costs of this distraint or attachment.
SCHEDULE
_____
FORM 30
[See rule 55(1)]
Attachment of a debt not secured by negotiable instrument/share in a corporation/ movable property not in the possession of the defaulter except property in the custody of a Court
........................
Whereas .................................. (name and address) has failed to pay Rs............ being the tax//penalty/interest*, it is ordered that said ........................ be and is hereby prohibited and restrained until further order by me,
*(i)from receiving from you the debt alleged now to be due from you to the said ........................ and that you are hereby prohibited and restrained until further order by me from making payment of the said debt or any part thereof to any person whomsoever or otherwise than to me.
*(ii)from making any transfer of shares in .................... corporation or from receiving payment of any dividend thereon, any, you, the Secretary of the said Corporation are hereby prohibited and restrained from permitting any such transfer or making any such payment.
*(iii)from receiving from you the following property in your possession to which defaulter ......................... is entitled and you are hereby prohibited and restrained until further order by me from delivering the said property to any person or persons whomsoever.
Description of Property
Given under my hand and seal on this ................. day of ............. 20...
FORM 31
[See rule 56(1)]
APPLICATION BEFORE THE CIVIL COURT REQUESTING ATTACHMENT OF A DECREE
The Munsiff/ ........................ Judge of the Court of ..................
I have the honour to inform you that the decree obtained in your Court on the day of .................. 20....... by .......................... in Suit No. .................. of 20... has been attached by me in execution of a certificate issued by the prescribed authority. You are, therefore, requested to stay the execution of the decree of your Court until you receive an intimation from me that the present notice has been cancelled or until execution of the said decree is applied for by the prescribed authority i.e., ..................... or by ........................
Dated this ................. day of ............ 20......
FORM 32
(See rule 57)
Attachment of the share or interest in property
(Name) .............................. (RC / EC No.) ......................
(Address) .........................................................
Whereas you have failed to pay Rs........... being the tax/penalty/interest*, you are hereby prohibited and restrained until property specified below or from charging it in any way.
Description of the property
....................................................
Dated this ............... day of .......... 20..
*Note: Strike off whichever is not applicable.
FORM 33
[See rule 59(1)]
APPLICATION BEFORE THE COURT/PUBLIC OFFICER REQUESTING ATTACHMENT OF PROPERTY
.............................
The prescribed authority i.e., .................. has issued a certificate under Rule 32 of the Karnataka Tax on Professions, Trades, Callings and Employment Rules, 1976, for recovery of Rs................ from ................... It is stated that Rs. ............. is due by you to said ......................... on account of ............ (specify how money is due and on what account)/property ........... (description) of said ............... is in your custody*. I request that you will hold the said money and any interest or dividend becoming payable thereon/property* subject to the further order by me.
Dated this .............. day of ........... 20...
________
FORM 34
(See rule 66)
Proclamation of sale of movable property
(Name, address and EC / RC No. of the defaulter) ..............................................
Whereas an order has been made by me for the sale of the attached or distrained property specified in the Schedule below in satisfaction of the certificate issued by the prescribed authority.........................under Rule 32 of the Karnataka Taxes on Professions, Trades, Callings and Employments Rules, 1976, for Rs.................... interest thereon and costs of this execution
The sale will be by public auction and the property shall be put up for sale in the lots specified in the Schedule. The sale will be of the right, title and interest of the defaulter said ....................... and the liabilities and claims attaching to the said property so far as they have been ascertained are those specified in the Schedule against each lot.
In the absence of any order of postponement the sale will be held at ............................ at ............A.M./P.M. In the event, however, the entire amount due is tendered or paid before the knocking down of any lot, the sale will be stopped.
The sale will be subject to and in accordance with Part-VI of the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976.
The price of each lot shall be paid at the time of sale or as soon as after the Tax Recovery Officer directs and in default of payment the property shall be forthwith be again put up and resold.
Dated this..............................day of....................................20
_________
FORM 35
(See rule 76)
Notice of attachment of immovable property
PART I
............................. ..................
..................................................(name, address and RC / EC of Defaulter)
Take notice that you have failed to pay the amount of Rs............... being the arrears of tax/penalty/interest* payable by you under the provisions of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and/or within the time specified in the Recovery Notice served on you on................. The immovable property mentioned in the following Table is therefore hereby attached and will be sold for the recovery of the said amount. You are hereby prohibited from transferring or charging the said property in any way and any transfer or charge created by you shall be invalid.
__________________________________________________________________________
PART II
The General Public
A copy of the notice of attachment issued to.............................. is enclosed herewith. The immovable property mentioned therein has been attached by me in exercise of the powers conferred on me by clause(b) of sub-section (1) of section 13 of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and rules made there under. The said owner of the property has been prohibited from transferring or charging the said property in any way. Notice is hereby given to the General Public that any transfer of or delivery of the said property and or of any interest therein and any payment to the said defaulter of any debt, dividend or other moneys contrary to such attachment shall be void against all claims enforceable under the attachment.
FORM 36
[See rule 79(2)]
Proclamation of sale of immovable property
(Name, address and RC / EC No. of the defaulter) ..............................................
Whereas an order has been made by me for the sale of the attached or distrained property specified in the Schedule below in satisfaction of the certificate issued by the prescribed authority.........................under Rule 32 of the Karnataka Tax on Professions, Trades, Callings and Employments Rules, 1976, for Rs.................... interest thereon and costs of this execution
The person declared to be the purchaser shall pay immediately after such declaration twenty-five percent of the amount of his purchase money to the Tax Recovery officer and in default the property shall forthwith be resold. The balance purchase money shall be paid by the purchaser to the Tax Recovery Officer on or before the fifteenth day of the date of the sale of the property; if the fifteenth day is a Sunday or other holiday then on the first office day after the fifteenth day.
FORM 37
[See rule 92(1)]
Sale Certificate
This is to certify that the following property:
has been sold to .....................................at........................................in public auction of the property held under Section 13(1)(b) of the Karnataka Tax on Professions, Trades, Callings and Employments Act, 1976 and Rules made thereunder on........................ for Rs............................ and the said............................... (purchaser) has been declared to be the purchaser of the said property at the time of sale. The sale price of the said property was received on.................... The sale was confirmed on.........................