(1) Every importer registered as a dealer under the Karnataka Sales Tax Act, 1957 (Act No.25 of 1957) shall file before the Assessing Authority, on or before the twentieth day of every month, a return in Form I in duplicate, showing the total value, exempted value and the taxable value of the notified goods for the preceding month, together with a Government Treasury Challan in Form-X or a crossed demand draft or pay order in favour of the assessing authority as token of having paid the amount of tax payable under Section 3 of the Act in respect of the preceding month.



(2) In the case of an importer referred to in sub-rule (1) having places of business in more than one local area, all returns specified by these rules shall be submitted by his principal place of business and such returns shall show the total value of the notified goods of all the places of his business in all the local areas.



(3) The returns so filed shall provisionally be deemed to be accepted subject to the provisions of sub-rule (4) and (5).



(4) Where the importer referred to in sub-rule (1), fails to submit the return on or before the date specified in the said sub-rule (1) or if the return submitted appears to be incorrect or incomplete, the assessing authority shall determine the value of the notified goods as specified in the Act and provisionally assess the tax payable for the month to the best of his judgment and shall serve upon the importer a notice in Form II and the importer shall pay the sum demanded within the time and in the manner specified in the notice.



(5) Where the importer referred to in sub-rule (1) submits a return without proof of payment for the whole of the amount of the tax payable, the assessing authority shall serve upon the importer a notice in Form II for the tax due and the importer shall pay the sum demanded within the time specified in the notice.



(6)(a) An importer of the notified goods, not being a dealer, shall file a return in Form III along with the proof of payment of tax due thereon before the assessing authority, specified in sub-clause (ii) of clause (b) of Section 2 of the Act, within fifteen days from the date of entry of such notified goods into local area, when the notified goods are brought into the State other than through a check-post, and immediately, when the notified goods are brought through a check-post or the goods vehicle is intercepted by an Officer, including when the notified goods are brought into the State by air or rail and are in transit.



Explanation:- Where an importer not being a dealer brings the notified goods, the return in Form III shall be filed by such importer or the person in-charge of the goods vehicle before the officer who intercepts the goods vehicle or the officer-in-charge of the first check post in the State through which the notified goods are brought, and where the notified goods are brought into the local area without touching any check-post in the State, such importer shall file the return in Form III before the Assistant Commissioner of Commercial Taxes, having jurisdiction over the area in which such importer ordinarily resides.



(b) Tax due thereon shall be paid in cash to the assessing authority or by a demand draft or by remittance into Government Treasury through a Challan in Form X.



(c) If such authority is satisfied that the return filed is correct and complete, he shall pass an order in Form IV and a copy thereof shall be served on the importer.



(d) If the return filed in Form III does not appear to be correct and complete, the authority concerned shall finally assess and determine the value of the notified goods and the tax payable thereon to the best of his judgment and serve on the importer a notice in Form VI and the importer shall pay the sum demanded immediately.



Provided that before making such final assessment the importer shall be given a reasonable opportunity of being heard by issue of a notice in Form V.



(e)(i) If the amount of tax demanded under clause (d) is not paid by the importer immediately upon the service of the notice, the whole amount outstanding shall become immediately due and shall be a charge on the properties of the importer.



(ii) The amount due under sub-clause (i), shall be recovered as if it were an arrear of tax under the Karnataka Sales Tax Act, 1957.



(iii) If default is made in making payment in accordance with sub-clause (i), the importer liable to pay the tax, shall pay interest at the rate of one half per cent per week, on the amount remaining unpaid, for each week after the expiry of the time specified under sub-clause (i).



Explanation:- Where the notified goods are brought into the State on behalf of an importer not being a dealer, in a goods vehicle and the tax as finally assessed is not paid, it shall be recovered from the owner or person in charge of the goods vehicle as if it were a penalty levied under Section 28-A of the Karnataka Sales Tax Act, 1957.



(7)(a) The tax payable under sub-rules (1), (2), (4), (5) and (6) above and any other amount payable under the Act may be paid into the State Bank of India or its associate bank or any other Bank approved by the Reserve Bank of India and specified by the Government, through a Challan in Form X along with the specified statements and returns and subject to the stipulations specified under the relevant provisions of the Act and the Rules.



(b) Challan in Form X specified under clause (a) shall be filled up in quadruplicate and the copy marked "original" shall be returned to the importer duly receipted as proof of payment, and copy marked as "duplicate" shall be sent to the Assessing Authority, and such copy marked as "triplicate" shall be sent to the Treasury by the bank and the copy marked "quadruplicate" shall be retained by the bank.