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Rule 165

(1) An application under sub-section (2) of section 60 shall be made in Form VAT 540 and shall be verified in the manner indicated therein, and every such application shall be accompanied by a fee of one thousand rupees.

(2)The fees specified in sub-rule (1) above shall be paid by way of crossed demand draft in favour of the Commissioner of Commercial Taxes in Karnataka, Bangalore.

(3) An applicant may withdraw an application made under sub-section (1) of section 60 within thirty days from the date of application.

(4) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the authority concerned and call for its finding on the clarification sought or question raised and also production of any information or records.

(5) The Authority may, after examining the application and any records called for, by order, either, admit or reject the application.

(6) The Authority shall not admit the application where the question raised in the application,

(a) is already pending before any officer or authority of the Department or Appellate Tribunal or any Court in any proceeding before them; or

(b) relates to a transaction or issue which is designed apparently for the avoidance of tax.

(7) No application shall be rejected under sub-rule (5) unless an opportunity has been given to the applicant to show cause in writing against such rejection, and where the application is rejected, reasons for such rejections shall be given in the order.

(8) The Authority shall hear and determine an application made under sub-section (2) of section 60 and such other applications, petitions and representations of an interlocutory, incidental or ancillary nature as may be necessary for a complete and effective disposal of the application, as the Chairman may by general or special order direct.

(9) Where an application is admitted under sub-rule (5), the Authority shall, after examining such further material as may be placed before it by the Applicant or obtained by the Authority, pass such order as deemed fit on the questions specified in the application, after giving an opportunity of being heard to the applicant, if he so desires and also the Local VAT Officer or VAT sub-officer or Registering Authority.

(10) The authority shall pass an order within three months of the receipt of any application, and a copy of every order made under section 60 shall be sent to the applicant and the officer concerned.

(11) The Commissioner may constitute the Authority consisting of three Additional Commissioners as members and authorize the senior most member to act as Chairman.

(12) The Commissioner may authorize any officer to act as the Secretary of the Authority.

(13) The Authority shall hold its sittings at its head quarters at Bangalore at least twice in a month, and the date and place of hearing shall be notified in such manner as the Chairman may by general or special order direct.

(14) The Secretary shall have the custody of the records of the Authority and shall exercise such other functions as are assigned to him under these rules or by the Chairman by separate order.

(15) The official seal of the Authority shall be kept in custody of the Secretary.

(16) The Secretary shall also have the following powers and duties namely.-

(a) to receive all applications filed before the Authority;

(b) to scrutinize the applications to find out whether they are in conformity with the Act, the rules and the procedure;

(c) to point out defects in such application to the parties and grant time to remove the defects and where, within the time granted, the defects are not removed, to obtain necessary orders of the Authority;

(d) to fix the date of hearing for the applications in consultation with the Chairman and direct the issue of notices there for;

(e) to issue notices or other processes and to ensure that the parties are properly served;

(f) to requisition records from the custody of any person including any authority;

(g) to allow inspection of records of the Authority;

(h) to direct any formal amendment of the records of the Authority;

(i) to grant certified copies of the orders of the Authority to the parties; and

(j) to grant certified copies of documents filed in the proceedings to the parties in accordance with the rules.

(17) (a) Any requisition, direction, letter, authorization or written notice to be issued by the Authority shall be signed by the Secretary or by an officer authorized by him.

(b) Nothing in clause (a) shall apply to any requisition or direction which the Authority may, in the course of the hearing, issue to an applicant or any authority or an authorized representative.

(18)(a) The Authority may at its discretion permit or require the applicant to submit such additional facts as may be necessary to enable it to pronounce its clarification or advance ruling.

(b)Where in the course of the proceedings before the Authority a fact is alleged which cannot be borne out by, or is contrary to, the record, it shall be stated clearly and concisely and supported by a duly sworn affidavit.

(19) The applicant shall not, except by leave of the Authority be heard in support of any additional question not set-forth in the application, but in deciding the application, the Authority shall at its discretion consider all aspects of the questions set-forth as may be necessary to pronounce a ruling on the substance of the questions posed for its consideration.

(20) An authorized representative appearing for the applicant at the hearing shall file, before the commencement of the hearing, a document authorizing him to appear for the applicant and, if he is a relative of the applicant, the document shall state the nature of his relationship with the applicant or, if he is a person regularly employed by the applicant, the capacity in which he is at the time employed.

(21) Where the applicant dies or is wound up or dissolved or disrupted or amalgamated or succeeded to by any other person or otherwise comes to an end, the application shall not abate and may be permitted by the Authority, where it considers that the circumstances justify it, to be continued by the executor, administrator or other legal representative of the applicant or by the liquidator, receiver or assignee, as the case may be, on an application made in this behalf.

(22)(a) Where, on the date fixed for hearing or any other day to which the hearing may be adjourned, the applicant or the officer concerned does not appear in person or through an authorized representative when called on for hearing, the Authority may dispose of the application ex-parte on merits.

(b) Where an application has been disposed of under clause (a) above and the applicant or the officer concerned applies within fifteen days of receipt of the order and satisfies the Authority that there was sufficient cause for his non-appearance when the application was called upon for hearing, the Authority may, after allowing the opposite party a reasonable opportunity of being heard, make an order setting aside the ex-parte order and restore the application for fresh hearing.

(23) Where the Authority finds on its own motion or on a representation made to it by the applicant or the officer concerned, but before the clarification or ruling pronounced by the Authority has been given effect to by the officer concerned, that there is a change in law or facts on the basis of which the clarification or ruling was pronounced, it may by order modify such ruling in such respects as it considers appropriate, after allowing the applicant and the officer a reasonable opportunity of being heard.

(24)(a) The Authority may, with a view to rectifying any mistake apparent from the record, amend any order passed by it before the clarification or ruling order pronounced by the Authority has been given effect to by the officer concerned.

(b) An amendment under clause (a) may be made on the Authority’s own motion or when the mistake is brought to its notice by the applicant or the officer concerned, but only after allowing the applicant and the officer reasonable opportunities of being heard.

(25) If at any stage of the proceedings before the Authority it appears that there is any factual or material error in the records, the same shall be amended after hearing the applicant and the officer concerned.

(26)(a) The applicant or the officer concerned or an authorized representative may be allowed to inspect the records of the case on making an application in writing to the Secretary, provided that only those documents shall be allowed to be inspected which have been relied upon in the proceedings before the Authority.

(b) The inspection shall be allowed only in the presence of an officer of the Authority and the applicant may be permitted to make notes of inspection but not to take copies of any document.

(i) One hundred rupees for the first hour or part thereof, and

(ii) Fifty rupees or every additional hour or part thereof.

(d) Fees for inspection shall be paid in advance in cash.

(27) Proceedings before the Authority shall be open to the public.

(28) Such of the orders of the Authority, as the Chairman deems fit for publication in any authoritative report or the Press, may be released for such publication on such terms and conditions as the Chairman may specify.

(29) (a) Every order of the Authority under section 60 shall be duly signed by the members and bear the official seal of the Authority.

(b) One certified copy of such order of the Authority shall be communicated to the applicant and the officer concerned under the signature of the Secretary or any other officer of the Authority authorized by him in this behalf and bear the official seal of the Authority.

(30)(a) When one, or both, of the members of the Authority other than the Chairman is unable to discharge his functions owing to absence, illness or any other cause or in the event of occurrence of any vacancy or vacancies in the office of the members and the case cannot be adjourned for any reason, the Chairman and the remaining member may function as the Authority.

(b) Subject to the provisions of sub-rule (3), in case there is difference of opinion among the members hearing an application, the opinion of the majority of members shall prevail and orders of the Authority shall be expressed in terms of the views of the majority but any member dissenting from the majority view may record his reasons separately.

(c) Where the Chairman and one other member hear a case under clause (a) and are divided in their opinion, the case shall be heard by all the three members.

(31) The provisions contained in these rules for the hearing and disposal of an application under sub-section (2) of section 60 shall apply mutatis mutandis to the hearing and disposal of all other applications, petitions and representations before the Authority.