Assessment of tax, imposition of penalty and determination of interest

The Meghalaya Tax (On Luxuries) Act, 2004

Tax200421 sections

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Statutory text

(1) If no return is furnished a licence stockist in respect of any period by the prescribed date, or if the Prescribed Authority is not satisfied that the return furnished is correct and complete, the Prescribed Authority shall proceed in such manner as may be prescribed to assess to the best of its judgement the amount of tax from the licensed stockist in respect of a year comprising all such periods and in making such assessment, shall give the licensed stockist a reasonable opportunity of being heard and in the case of failure by a licensed stockist to submit in respect of any period a return accompanied by a receipt from a Government Treasury as required under Section 7 by the prescribed date, the Prescribed Authority may, if he is satisfied that the default was made without reasonable cause for such period, direct that the licensed shall pay, by way of penalty, in addition to the amount of tax so assessed in respect of such period, a sum not exceeding that amount.; Provided that no penalty under this sub-section shall be directed to be paid in respect of the fact for which a prosecution under clause (c) of sub-section (1) of Section 17 has been instituted and no prosecution would be vice versa.
(2) If, upon information, the Prescribed Authority is satisfied that any stockist who has been liable to pay under Section 4 has failed to obtain licence, or has not been granted licence, the Prescribed Authority shall proceed in such manner as may be prescribed to assess to the best of its judgement the amount of tax due from such stockist in respect of any period or part thereof during which such stockist has either failed to obtain licence, or has been granted licence, after giving him a reasonable opportunity of being heard.
(3) No assessment under sub-section (1) shall be made after the expiry of two years, and no assessment under subsection (2) shall be made after expiry of six years, from the end of the year in respect of which or part of which the assessment is made.
(4) In computing the period limited by sub-section (3) for making any assessment under sub-section (1) or subsection (2), the period during which the Prescribed Authority is restrained from commencing or continuing any proceeding for such assessment by an order of any Court shall be excluded.
(5) Where the Prescribed Authority is satisfied that a stockist is liable to pay interest under Section 8, it shall, in such manner as may be prescribed, determine the amount of interest payable by such stockist and if, on such determination, any additional amount is found to be payable by the stockist. or any excess amount is found to be refundable to the stockist, the Prescribed Authority shall issue a notice, in the prescribed manner, to such stockist directing him to pay such additional amount or informing him of the amount of excess payment, as the case may be.
(6) No determination under sub-section (5) of the interest payable under sub-section (1) of Section 8 shall be made after the expiry of one year from the date of assessment of tax under sub-section (1) in respect of period for which such determination is made.
(7) Where there is an apparent mistake in the determination of interest under sub-section (5), the Prescribed Authority may; on its own motion or upon application made by a stockist, within six months from the date of determination rectify the amount of interest payable by such stockist and issue a fresh notice in the prescribed manner.
(8) The amount of tax due from a stockist upon assessment made under sub-section (1) or sub-section (2), as the case may be, shall together with any penalty directed to be paid under subsection (1), be paid by the stockist into a Government Treasury by such date as may be specified in a notice by the Prescribed Authority for this purpose and the due date to be so specified shall not ordinarily be less than thirty days from the date of service of such notice.
(9) The amount of interest that may become due from a stockist upon determination under sub-section (5) shall be paid by the stockist into a Government Treasury by such date as may be specified in the notice issued under the sub-section by the Prescribed Authority and the date to be so specified shall not ordinarily be less than thirty days from the date of service of such notice.
(10) Any amount of tax, penalty or interest which remain unpaid after the date specified in the notice under sub-section (8) or sub-section (9) shall be recoverable as an arrear of land revenue, as if it were payable to the Collector.

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