Keyword(s):
Assessee, Assessing Authority, Dealer, Good Vehicle, Local Area, Occasional Dealer,
Place of Business, Registered Dealer, Tax, Value of the Goods, Works, Contract
Amendments appended: 5 of 2001, 5 of 2002, 3 of 2003, 26 of 2004, 11 of 2005, 5 of
2006, 5 of 2007, 6 of 2008, 7 of 2009, 5 of 2010, 15 of 2011, 18 of 2012, 27 of 2013, 53
of 2013, 14 of 2014

Act 27 of 1979.- Octroic is being abolished in the State, as it was causing great
hardship to transport operations and to trading community.
The abolition of octroi, which is being levied and collected by the local authorities
will result in considerable loss of revenue to them. The State Government will have
to make up this loss of revenue.
It is therefore considered necessary to levy a tax on the entry into local areas of
certain goods.
Hence this Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 27-3-1979
as No. 260 at page 22.)
II
Amending Act 12 of 1981.- (1) Consequent upon abolition of octroi,
Government took a policy decision and gave an assurance that the local bodies
would be fully compensated for the loss of octroi. In order to generate additional
revenue, to pay this compensation, the Karnataka Tax of Entry of Goods into Local
714 Tax on Entry of Goods 1979: KAR. ACT 27]
Areas for Consumption, Use or Sale therein, Act, 1979 was brought into force with
effect from 1st June 1979. Some dealers filed writ petition challenging the validity of
the Act. The High Court of Karnataka Struck down the Act as unconstitutional. The
State Government preferred an appeal to the Supreme Court.
(2) In view of the stay orders from the High Court Entry Tax could not be
collected and as a temporary measure to augment the revenues of the State, the
Karnataka Tax on Entry of Goods into Local Areas for Consumption, Use or sale
therein Act, 1980 was enacted keeping in view the High Court Order. This Act came
into force from 8th June 1980, but this was also challenged in about 4, 000 writ
petitions. The State appeal pending before the Supreme Court, was decided by the
Supreme Court and the Judgement was pronounced on 25th September 1980
upholding the Karnataka Tax on Entry of Goods into Local Areas for Consumption,
Use or Sale therein Act, 1979, as constitutionally valid.
(3) Thus, the two Acts, viz., 1979 and 1980 Acts were in force. The
Government decided to repeal the 1980 Act. Accordingly an Ordinance was
promulgated. The ordinance is being replaced by an Act and both the houses of
Legislatures are have passed then bill repealing 1980 Act. For the past, the 1979
Act is in force. The Department of Law and Parliamentary Affairs has expressed a
view that legally the dealers are liable to pay tax arrears from 1st June 1979, but
administratively it has become very difficult to collect the tax as the whole trading
community has been agitating to waive the payment of arrears of tax on the ground
that it is unable to withstand the tax liability retrospectively as it has not collected he
same after the 1979 Act was struck down by the High Court.
(4) A number of representations were received from the traders from various
chambers of commerce and industry requesting to abolish the entry tax or at least
levy it from 1st January 1981 and to exclude from the preview of Entry tax on khadi,
handloom and silk goods, with a view to remove the uncertainties in the minds of
traders who have been urging right from the beginning that they have not collected
entry tax from the purchaser between 1st June 1979 and 25th September 1980, the
date on which the Supreme Court Judgment was pronounced validating the 1979
Act, it was felt practicable to notify the collectability of the tax from 1st October 1980
instead of from the original date., 1st June 1979 and also to exclude kadhi, cotton
handloom fabrics and silk fabrics from the purview of the entry tax. Accordingly, an
(Amendment) Ordinance 1981 (Karnataka Ordinance No. 3 of 1981) was
promulgated, amending the Karnataka Tax on Entry of Goods into Local Areas for
Consumption, Use or Sale therein Act, 1979.
This Bill seeks to replace the said Ordinance.
[1979: KAR. ACT 27 Tax on Entry of Goods 715
(Obtained from L.A. Bill No. 37 of 81)
III
Amending Act 13 of 1982.- In the budget speech for the year 1982–83, the
Hon’ble Minister of Finance and Tourism, has indicated several proposal in order to
augment the revenue of the State. This Bill seeks to give effect to the said
proposals. Opportunity is taken to make some other minor amendments.
(Published in Karnataka Gazette (Extraordinary), Part IV-2A, dated 27-3-1982,
as No. 223, at page 31).
IV
Amending Act 38 of 1984.- The present Bill is intended to give effect to the
pronouncements made in the Budget speech for the year 1983-84. It is also
intended to amend certain other provisions of the Act for a better and more effective
administration.
Hence this Bill.
(Obtained from L.A. Bill No.15 of 1983).
V
Amending Act 28 of 1985.- While presenting the budget for the year 1985-86
certain concession and facilities to the dealers under the Entry Tax Act were
proposes. To give effect to these concession and other facilities some of the
provisions of the Entry Tax Act are to be amended. Opportunity has been taken to
effect certain other changes in the Act to facilitate smooth administration of the Act.
(Obtained from L.A. Bill No. 30 of 1985)
VI
Amending Act 12 of 1986.- After enactment of the Karnataka Zilla Parishads,
Taluk Panchayat amithis, Mandal Panchayats and Nyaya Panchayat Act, 1983 the
area converted into a Mandal under the provisions of section 128(1) of the said Act,
shall case to be a local area. Hence the definition of the Act is proposed to be
amended.
Hence the Bill.
(Obtained from L.A. Bill No. 26 of 1986.)
VII
Amending Act 41 of 1986.- The proposed legislation is for the purposes of
rationalising the provisions relating to levy of tax on packaging materials and
industrial raw materials, components and imputes under the Act.
Hence this Bill.
716 Tax on Entry of Goods 1979: KAR. ACT 27]
(Obtained from L.A. Bill No. 32 of 1983)
VIII
Amending Act 42 of 1986.- Item 17 and 18 were inserted in the Schedule to the
Karnataka Tax on Entry of Goods Into Local Area for Consumption, Use or Sale
Therein Act, 1979 with effect from 1st April 1983. The entries in items 17 and 18
were capable of including a large variety of materials, though it was intended to
include only certain types of materials. The intention is made clear by inserting
items 16A and 16B in the said Schedule by Bill 32 of 1983. This Bill received the
assent of the President on 14th January 1986 and is being published as an Act and
therefore items 17 and 18 are being deleted.
Hence the Bill.
(Obtained from L.A. Bill No. 40 of 1986)
IX
Amending Act 43 of 1986.- In the principal Act the Commissioner of
Commercial Taxes and the Joint Commissioner of Commercial Taxes have been
vested with the power of revising the orders passed by their subordinates. It is now
proposed to vest with them the power of staying the operation of the orders taken
up for suo moto revision proceedings, whenever found necessary.
(Obtained from L.A. Bill No. 46 of 1986)

X
Amending Act 11 of 1987.- To give effect to the proposals made in the budget
speech, it is proposed to amend the Karnataka Tax on Entry of Goods into Local
Areas for Consumption, Use or Sale Therein Act, 1979.
Consequent to the amendment of the term “year” in the Karnataka Sales Tax
Act, 1957, the term “year” in this Act is also amended. Insertion of section 30A is
consequential. Hence the Bill.
(Obtained from L.A. Bill No. 17 of 1987.)
XI
Amending Act 8 of 1989.- It is considered necessary to amend the following Acts,—
(1) Section 2 is proposed to be amended to exclude pepper and
cardamom grown as subsidiary crops in the land used for growing nonplantation crops like arecanut and coconut.
(2) Section 12 is proposed to be amended to exempt certain contributions
made from the payment of agricultural income tax.
[1979: KAR. ACT 27 Tax on Entry of Goods 717
(3) Section 32 is proposed to be amended to provide for appeals to the
Deputy Commissioner (Appeals) against certain orders passed by the
Agricultural Income Tax Officers.
As the matter was urgent, the Karnataka Taxation Laws (Amendment)
Ordinance, 1988 was promulgated. Hence, the Karnataka Taxation Laws
(Amendment) Bill, 1988 to replace the said Ordinance.
(Obtained from LAW 43 LGN 88.)
XII
Amending Act 18 of 1989.- To give effect to the proposals made in the Budget
Speech, it is considered necessary to amend the Karnataka Tax on Entry of Goods
into Local Areas for Consumption, Use or Sale therein Act, 1979.
Opportunity is also taken to rationalise certain provisions of the said Act.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 27-3-1989
as No. 162 at page 7.)
XIII
Amending Act 9 of 1990.- To give expect to the proposals made in the Budget
Speech, it is considered necessary to amend the Karnataka Tax on Entry of Goods
into Local Areas for Consumption, Use or Sale therein Act, 1979.
Opportunity is also taken to rationalise certain provisions of the said Act.
Hence the Bill.
(Published in the Karnataka Gazette (Extraordinary) Part IV-2A dated 29-3-1990
as No. 164 at page 161.)
XIV
Amending Act 14 of 1991.- It is considered necessary to amend the Karnataka
Tax on entry of Goods Into Local Areas for Consumption, Use or Sale Therein Act,
1979 to give effect to the proposal made in the Budget Speech and for removing
ambiguities, streamlining, administration and rationalising procedure
Hence the Bill.
(Obtained from L.A. Bill No. 14 of 1991.)
XV
Amending Act 15 of 1992.- When the Entry tax Act was brought into force in
1979 to replace the obnoxious system of Octroi, The State Government was of the
opinion that levying Entry Tax on three items namely, textiles, tobacco and sugar
alone will be sufficient to make up the loss of revenue on account of abolition of