Assessment and Collection of Tax

Assessment and Collection of Tax.--(I) On receipt of a return under section 6, the assessing authority of the district concerned shall assess the luxury tax payable in respect of the period to which the return relates and if the amount has not already been paid as aforesaid, he shall cause notice to be served upon the proprietor concerned requiring him to pay the amount assessed within ten days of the service of the notice.

1. (2) If the proprietor fails to submit in due time the return referred to in section 6, the assessing authority shall, after giving him a reasonable opportunity of being heard, assess to the best of his judgement, the amount of luxury tax payable and the provisions of sub-section
2. (1) in respect of notice shall apply as if such assessment has been made on the basis of a return furnished by such proprietor.
3. (3) If the luxury tax is not paid within the prescribed period the assessing authority may, after giving an opportunity of being heard, levy a penalty equal to a sum not exceeding one and a half times of the amount of the luxury tax payable under this Act.