Section 70(2) in The Karnataka Value Added Tax Act, 2003
(2)Where a dealer knowingly issues or produces a false tax invoice, credit or debit note, declaration, certificate or other document with a view to support or make any claim that a transaction of sale or purchase effected by him or any other dealer, is not liable to be taxed, or liable to tax at a lower rate, or that a deduction of input tax is available, the prescribed authority shall, on detecting such issue or production, direct the dealer issuing or producing such document to pay as penalty:(a)in the case of first such detection, three times the tax due in respect of such transaction or claim; and(b)in the case of second or subsequent detection, five times the tax due in respect of such transaction or claim.
