The Gujarat Tax on Luxury Commodities Act, 1995

Short title, extent and commencement

1. (1) This Act may be called the Gujarat Tax on Luxury Commodities Act, 1995.
2. (2) It extends to the whole of the State of Gujarat.
3. (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

Definitions In this Act, unless the context otherwise requires,—

1. (a) "importer" means a person who brings any luxury commodity into the local area from any place outside such area for the purpose of sale or use in the course of business;
2. (b) "luxury commodity" means any commodity specified in the Schedule;
3. (c) "manufacturer" means a person who produces, makes, extracts, separates or manufactures any luxury commodity;
4. (d) "registered stockist" means a stockist registered under this Act;
5. (e) "stock" means any luxury commodity held by a stockist on the commencement of this Act or acquired by him thereafter;
6. (f) "stockist" means a person who has in his possession a stock of any luxury commodity for the purpose of sale or use in the course of business;
7. (g) "tax" means the tax leviable under the provisions of this Act;
8. (h) "value of stock" means the purchase price of the luxury commodity and includes any duty, tax, transport charges and other expenses incurred by the stockist in respect of the luxury commodity up to the point of its arrival at the place of business of the stockist.

Incidence of tax. -

1. (1) Subject to the provisions of this Act and rules made thereunder, every stockist who has in his possession on the appointed day any stock of luxury commodities or who acquires any stock of such commodities after the appointed day, shall be liable to pay tax under this Act on the value of such stock at such rate not exceeding twenty-five per cent. of the value of such stock as the State Government may, by notification in the Official Gazette, specify in this behalf: Provided that the State Government may notify different rates of tax for different luxury commodities.
2. (2) Nothing in sub-section
3. (1) shall apply to a stockist who is a registered dealer under the Gujarat Sales Tax Act, 1969 (Guj. 1 of 1970) and whose aggregate value of stock of luxury commodities held by him as on the appointed day or acquired by him during the course of a year does not exceed such amount as may be prescribed.
4. (3) Where a stockist is not a registered dealer under the Gujarat Sales Tax Act, 1969 (Guj. 1 of 1970), he shall be liable to pay tax under this Act only if the aggregate value of the luxury commodities held by him or acquired by him during the course of a year exceeds such amount as may be prescribed.

Tax on luxury commodities.—(1) Subject to the provisions of this Act and the rules made thereunder, there shall be levied and collected a tax on the luxury commodities specified in column 2 of the Schedule, which are—

1. (a) manufactured in the State or imported into the State by a manufacturer or an importer, or
2. (b) held in stock by a registered stockist, at such rate not exceeding twenty per cent. of the value of the stock of such commodities as the State Government may, by notification in the Official Gazette, specify in this behalf, and different rates may be specified for different luxury commodities: Provided that no tax shall be levied on any luxury commodity which is exported out of the territory of India: Provided further that no tax shall be levied on the stock of any luxury commodity if the tax thereon has already been paid under this Act by any other manufacturer, importer or registered stockist.

1. (2) The tax shall be paid by the manufacturer, importer or, as the case may be, the registered stockist in such manner and within such time as may be prescribed.

Registration

1. (1) No manufacturer, registered stockist or importer shall, while being liable to pay tax under this Act, carry on business as a manufacturer, registered stockist or importer unless he is in possession of a valid certificate of registration as provided under this Act.
2. (2) Every manufacturer, registered stockist or importer liable to pay tax under this Act shall apply for registration in the prescribed manner to the prescribed authority.
3. (3) If the prescribed authority is satisfied that the application is in order, he shall register the applicant and grant him a certificate of registration in the prescribed form.
4. (4) A certificate of registration granted under sub-section
5. (3) shall be valid for such period as may be prescribed and may be renewed from time to time.
6. (5) The prescribed authority may, after giving the holder of a certificate of registration a reasonable opportunity of being heard, cancel or amend the certificate of registration for reasons to be recorded in writing.

Returns

1. (1) Every manufacturer, registered stockist or importer who is liable to pay tax under this Act shall furnish a return in such form, for such period and by such dates as may be prescribed.
2. (2) If any person having furnished a return under sub-section (1), discovers any omission or wrong statement therein, he may furnish a revised return at any time before the expiry of the period prescribed for the assessment of tax for that period.
3. (3) Every return furnished under sub-section
4. (1) or
5. (2) shall be accompanied by such documents as may be prescribed and shall be verified in the prescribed manner.

Assessment of tax.—

1. (1) If the prescribed authority is satisfied that the returns furnished under section 6 in respect of any period are correct and complete, he shall assess the amount of tax due from the registered dealer on the basis of such returns.
2. (2) If the prescribed authority has reason to believe that the returns furnished under section 6 are incorrect or incomplete, he shall serve on the registered dealer a notice in the prescribed form requiring him to attend and produce evidence in support of such returns.
3. (3) On the date specified in the notice or as soon as may be thereafter, the prescribed authority shall, after hearing the registered dealer and examining such evidence as he may produce, assess the amount of tax due from him.
4. (4) If a registered dealer fails to comply with the terms of any notice issued under sub-section (2), the prescribed authority shall assess, to the best of his judgment, the amount of tax due from him.
5. (5) If a registered dealer fails to furnish the returns under section 6 within the prescribed time, the prescribed authority shall, after giving the dealer a reasonable opportunity of being heard, assess to the best of his judgment, the amount of tax due from him.

Payment of tax.—

1. (1) The tax due from a registered dealer shall be paid in the prescribed manner.
2. (2) If a registered dealer fails to pay the tax within the prescribed time, he shall be liable to pay, in addition to the tax, interest at the rate of two per cent of the amount of tax for each month or part thereof for the period for which the tax remains unpaid.
3. (3) The amount of tax and interest, if any, remaining unpaid shall be recoverable as an arrear of land revenue.

Power to reassess.—

1. (1) If the assessing authority has reason to believe that the whole or any part of the tax liability of a registered stockist in respect of any period has escaped assessment or has been under-assessed or assessed at a lower rate, then the assessing authority may, at any time within five years from the end of the year in which such period falls, serve on the registered stockist a notice containing all or any of the requirements which may be included in a notice under sub-section
2. (2) of section 7 and may proceed to assess or reassess the amount of the tax due from such stockist: Provided that the tax shall be charged at the rate at which it would have been charged if such tax had not escaped assessment or had not been under-assessed.
3. (2) Nothing in this section shall be deemed to prevent the assessing authority from making an assessment to the best of its judgment under section 8 where the registered stockist fails to comply with the notice issued under sub-section (1).

Imposition of penalty in certain cases.—

1. (1) If a registered stockist—
   • (a) fails to furnish a return as required by section 7 or fails to comply with the terms of a notice issued under sub-section
2. (2) of section 7 or sub-section
3. (1) of section 9;
   • (b) without reasonable cause, fails to pay tax within the time allowed;
   • (c) conceals the particulars of his stock or the value thereof or deliberately furnishes inaccurate particulars of such stock or value;
   • (d) fails to maintain any account or record as required by the provisions of this Act or the rules made thereunder; the assessing authority may, after giving the registered stockist a reasonable opportunity of being heard, direct him to pay, by way of penalty, in addition to the tax payable by him, a sum not exceeding one and a half times the amount of the tax.
4. (2) No penalty under this section shall be imposed where a person proves to the satisfaction of the assessing authority that the failure or the concealment was not willful.

Recovery of tax. —

1. (1) Any tax imposed or any penalty imposed under this Act which remains unpaid shall be recoverable as an arrear of land revenue.
2. (2) Where a person who is liable to pay tax or penalty under this Act fails to pay the same, the Commissioner may, after giving such person a reasonable opportunity of being heard, proceed to recover the amount as if it were an arrear of land revenue and for that purpose, shall have all the powers conferred on a Collector under the Gujarat Land Revenue Code, 1879.

Appeals. —

1. (1) Any person aggrieved by an order passed under this Act may, within sixty days from the date of communication of the order, prefer an appeal to such authority as may be prescribed.
2. (2) No appeal shall be entertained unless it is accompanied by satisfactory proof of the payment of the tax or penalty in respect of which the appeal has been preferred: Provided that the appellate authority may, if it thinks fit, for reasons to be recorded in writing, waive or reduce the amount required to be paid under this sub-section.
3. (3) The appellate authority may, after giving the appellant a reasonable opportunity of being heard, confirm, annul or modify the order appealed against.

Revision.

1. (1) The Commissioner may, either of his own motion or on an application made in this behalf, call for and examine the record of any order passed or proceedings recorded by any officer subordinate to him under this Act, for the purpose of satisfying himself as to the legality or propriety of such order or as to the regularity of such proceedings and may pass such order in reference thereto as he thinks fit: Provided that no order shall be passed under this section which adversely affects any person unless such person has been given a reasonable opportunity of being heard.
2. (2) No order shall be revised under this section after the expiry of three years from the date of the order sought to be revised.

Power to inspect and search.

1. (1) For the purpose of this Act, the Commissioner or any officer authorised by him in this behalf, may—
   • (a) enter and search, at any reasonable time, any place of business of any person or any place where such person keeps his stock of luxury commodities or accounts, registers or other documents relating thereto;
   • (b) require any person in charge of such place to produce for inspection such accounts, registers or other documents or to furnish such information as may be necessary for the purposes of this Act;
   • (c) inspect and seize any accounts, registers or other documents or any luxury commodities for reasons to be recorded in writing.
2. (2) All searches made under sub-section
3. (1) shall be made in accordance with the provisions of the Code of Criminal Procedure, 1973 (2 of 1974).

Power of seizing, etc.

1. (1) If the Commissioner has reason to believe that any person is trying to evade payment of any tax, fee or other dues under this Act, he may, for reasons to be recorded in writing, seize such accounts, registers or documents of such person as may be necessary and shall grant a receipt for the same and shall retain the same for so long as may be necessary in connection with any proceeding under this Act or for a prosecution.
2. (2) For the purposes of sub-section (1), the Commissioner may enter and search any place of business or any other place where the Commissioner has reason to believe that the books of accounts, registers or documents or goods are kept.

Offences and penalties. Whoever—

1. (a) being a person liable to pay tax under this Act, fails to pay the tax as required by or under this Act, or
2. (b) fails to furnish any return or to maintain any register as required under this Act, or
3. (c) intentionally makes any statement or furnishes any information which is false or incorrect in any material particular, or
4. (d) prevents or obstructs the Commissioner or any officer authorised by him in the performance of his duties under this Act, shall, on conviction, be punished with imprisonment for a term which may extend to six months or with fine which may extend to two thousand rupees or with both:

Offences by companies Offences by companies

1. (1) Where an offence under this Act has been committed by a company, every person who at the time the offence was committed was in charge of, and was responsible to, the company for the conduct of the business of the company, as well as the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly: Provided that nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
2. (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or connivance of, or is attributable to any neglect on the part of, any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly. Explanation.—For the purposes of this section,—
   • (a) "company" means a body corporate, and includes a firm or other association of individuals; and
   • (b) "director" in relation to a firm means a partner in the firm.

Power to make rules

1. (1) The State Government may, by notification in the Official Gazette, make rules for carrying out the purposes of this Act.
2. (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:—
   • (a) the form of application for registration under section 6;
   • (b) the form of certificate of registration under section 6;
   • (c) the form of return to be furnished under section 8 and the period within which it shall be furnished;
   • (d) the form and manner in which the accounts shall be kept under section 9;
   • (e) any other matter which is to be or may be prescribed under this Act.
3. (3) The power to make rules conferred by this section shall be subject to the condition of previous publication.
4. (4) All rules made under this section shall be laid for not less than thirty days before the State Legislature as soon as may be after they are made and shall be subject to such modifications as the State Legislature may make during the session in which they are so laid or the session immediately following.

-1 19. Repeal and saving

1. (1) The Gujarat Tax on Luxury Commodities Ordinance, 1995 (Guj. Ord. 3 of 1995) is hereby repealed.
2. (2) Notwithstanding such repeal, anything done or any action taken (including any notification, order or notice issued or application made) under the said Ordinance shall be deemed to have been done or taken under the corresponding provisions of this Act.