Assessment of luxury tax, imposition of penalty & determination of Interest

The Orissa Luxury Tax Act, 1995

Tax199515 sections

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Statutory text

(1) If no return is furnished by a licensed stockist in respect of any period by the prescribed date, or if the Commissioner is not satisfied that the return furnished is correct and complete, the Commissioner shall in such manner as may be prescribed to assess to the best of his judgment the amount of luxury tax due 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 Commissioner may, if he is satisfied that the default was made without reasonable cause for such period, direct that the licensed stockist shall pay, by way of penalty, in addition to the amount of luxury 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 same fact for which a prosecution under clause
- (c) of sub-section
(1) of section 18 has been instituted and no prosecution would lie vice versa.
(2) If, upon information, the Commissioner is satisfied that any stockist who has been liable to pay luxury tax under section 4, has failed to obtain licence, or has not been granted licence, he shall proceed in such manner as may be prescribed to assess to the best of his judgment the amount of luxury 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 not 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 sub-section
(2) shall be made after the 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 sub-section (2), the period during which the Commissioner is restrained from commencing or continuing any proceeding for which such assessment by an order of any Court shall be excluded.
(5) Where the Commissioner is satisfied that a stockist is liable to pay interest under section 8, he 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 Commissioner 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 interest payable under sub-section
(1) of section 8 shall be made after the expiry of one year from the date of assessment of luxury tax under sub-section
(1) in respect of the period for which such determination is made.
(7) Where there is an apparent mistake in the determination of interest under sub-section (5), the Commissioner may, on his 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 luxury 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 sub-section (1), be paid by the stockist into a Government Treasury by such date as may be specified in a notice issued by the Commissioner for this purpose, and the 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 that sub-section by the Commissioner 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 luxury tax, penalty or interest which remains 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.

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