LT NOTIFICATION

THE KERALA TAX ON LUXURIES ACT, 1976 *
(Act 32 of 1976)
An Act to provide for the levy and collection of tax on Luxuries

Preamble: - Whereas it is expedient to provide for the levy and collection of tax on luxuries
Be it enacted in the Twenty-seventh Year of the Republic of India as follows: -

        1. Short title, extent and commencement: - 
               (1) ²This Act may be called the Kerala Tax on Luxuries Act, 1976.
               (2) It extends to the whole of the State of Kera1a.
               (3) It shall be deemed to have come into force on the 1^st day of July 1976.

        2. Definitions: - In this Act, unless the context otherwise requires: -
                (a) "appellate authority" means an appellate authority appointed under sub-section (2) of Section 3.
                (b) "assessing authority" means an assessing authority appointed under sub-section (1) of Section 3.
                (c) "Board of Revenue" means the Board of Revenue constituted under the Kerala Board of Revenue Act, 1957;
                (d) "company" means a company as defined in Section 3 of the Companies Act, 1956.
                (e) "hotel" means a building or part of a building where residential accommodation  is by way of  business provided for a monetary consideration and includes a lodging  house.

 Explanation.- A guest house run by the Government or a company or a corporation established by orunder any law or any other agency shall be deemed to be a hotel within the meaning of this clause
               ³(ee) "luxury" means a commodity or service that ministers comfort or  Pleasure:
                (f) "luxury provided in a hotel" means accommodation for residence and other amenities and services provided in a hotel, the rate of charges for which (exclusive of charges for food, drink and telephone calls) is fifteen rupees per day or more:,
                (g) "prescribed" means prescribed by rules made under this Act;
                (h) "proprietor" in relation to a hotel, includes the person who for the time being is in charge of the management of the hotel;
              ⁴(I) "Schedule" means a Schedule appended to this Act; 
                (j) "State" means the State of Kerala;
                (k) "Stockist" means a person who, for the purpose of business manufactures, produces, brings or causes to be brought in the State a commodity included in the Schedule or to whom such commodity is dispatched from any place outside the State for supply within the State or who supplies such commodity within the State, whether by way  of sale or otherwise;  
        3. Authorities:-     (1) The Government may, by notification in the Gazette, appoint such officers as they think fit to be assessing authorities for the purposes of this Act and may assign to them such local limits as the Government may think fit.
                (2) The Government may, by notification in the Gazette, appoint such officers as they think fit to be appellate authorities for the purposes of this Act and may assign to them such local limits as the Government may think fit. 
                (3) All authorities and officers employed in the execution of this Act shall observe  and follow the orders, instructions and directions of the Board of Revenue:  
        Provided that no such orders, instructions  or directions shall be given so as to interfere with the discretion of the appellate authority in the exercise of its appellate functions.

          4. Levy and collection of luxury tax: -
        
        (1) Subject to the provisions of this Act, there shall be levied and collected a tax in respect of any luxury provided in a hotel ⁵and  in respect of a Commodity included in the Schedule (hereinafter called the “luxury tax”).
        
       ⁶(2) The luxury tax shall be payable by the person residing in a hotel at the following rates, namely:-

        (3) The luxury tax shall be collected by the proprietor and paid within such period and in such manner as may be prescribed, into a Government treasury ^*or a bank notified by Government in this behalf.
        
        (4) In computing the luxury tax, a fraction of a rupee which is not a multiple of five paise shall be rounded off to the next higher multiple of five paise.

          ¹¹4A. Collection of luxury tax on certain commodities: -

        (1) The luxury tax in respect of a commodity included in the Schedule shall be at the rate specified against it calculated on the basis of the value of the commodity, under whatever head it is charged, received or receivable at the point of supply and be payable by the person who uses or consumes the same.  

        (2) The luxury tax shall be collected by the stockist and paid, within such period and in such manner as may be prescribed, into the Government Treasury.  

        (3) Where a luxury tax is collected by a stockist at the point of first supply in the State, whether by way of sale or otherwise, no luxury tax under this Act shall be collected at any successive point of supply.  

        (4) The provisions of this Act shall, in so far as they relate to the assessment, levy and collection of tax in respect of a commodity included ¹²in the Schedule, including inspection, search and refunds apply with the substitution of the word "stockist", for the word "proprietor” wherever it occurs.  

          4B. Registration of hotels.-

        (I) Every proprietor of a hotel having not less than five rooms to be rented for accommodation for residence shall get his hotel registered and the registration renewed annually.  
        (2) An application for registration or renewal shall be made to such authority in such manner and  within such period as may be prescribed and shall be accompanied by a fee as specified  below, namely:-  

         ¹³5. Returns: - Every proprietor liable to pay luxury tax under this Act shall submit such return in such manner and within such period as may be prescribed.  

          ¹⁴5A. Compounding of tax: -

        ¹⁵(1)   Notwithstanding anything contained in  Sections 4 or Section 5, any proprietor of a hotel other than-

           (i) a Star hotel; or 

           (ii) a hotel having not less than twenty-five rooms; or

           (iii) a hotel having not less than five rooms, for which the rate of charge per room per day is not less than  four hundred rupees, may apply to the assessing authority for permission to compound the tax at the following rates per  annum, namely: -

        
        (2) The tax payable in accordance with the above sub-section shall be payable in equal monthly instalments rounded to the nearest ten rupees or multiples of rupees ten.  

        (3) For the purpose of sub-section (1) any person who is liable to pay the tax shall file an application and  return to the assessing authority within ninety days of the commencement of this Act on or before the 1^st day of May every year.

        (4) On receipt of the application and return, and after satisfying that the particulars furnished therein  are true and complete the assessing authority may determine the tax payable and the monthly instalments  payable by the person.  

        (5) The monthly installment of tax determined by the assessing authority shall be paid in accordance with the provisions of the Act on or before the 10^th of the succeeding  month, but the instalment due for  March every year shall be paid during that month itself.  
        
        (6) If the tax determined is not paid as specified in the above sub-section it shall be recovered along with  penalty in accordance with the provisions of the Act. 

        (7) Whenever any revision of the rate of charges is made or when there is any addition to the hotel, a  revised return shall be filed within thirty days of such revision or addition and the assessing authority shall accordingly refix the tax and monthly instalments. 

        (8) If any person fails to file a revised return in accordance with the provisions of sub-section (7) he shall be liable to pay penalty not exceeding twice the amount of tax leviable on such revision of rate or addition to the hotel subject to a minimum of rupees one thousand and the tax shall be assessed and collected in accordance with the provisions of this Act.
6. Assessment and collection of tax:-

16(1)   On receipt of a return under section 5, if the assessing authority is satisfied that the return is correct and complete, it shall assess the proprietor on the basis thereof.

        ¹⁷(2)   If the proprietor fails to submit the return under Section 5 in due time or if the return submitted by  him appears to the assessing authority to be incorrect or incomplete, the assessing authority shall, after making such enquiry as it may consider necessary and after taking into account all relevant materials gathered by it, assess the proprietor to the best of its judgment:

Provided that before taking action under this sub-section, the proprietor shall be given a  reasonable opportunity of being heard and, where a return has been submitted, to prove the  correctness or completeness of such return. 

        (3) If the luxury tax is not paid within the prescribed period, the assessing authority may levy a  penalty equal to a sum not exceeding the amount of the luxury tax payable under this Act: 

Provided that no penalty shall be levied under this sub-section unless the proprietor  has been given a reasonable opportunity of being heard. 

7. Appeal: -  
        ¹⁸(l) Any person aggrieved by an order of assessment made or ¹⁹a penalty levied under section 6, Sub-section (7) and (8) of Sections 12A, sub-section (8) of Section 13 or Section 17A may, within thirty days from the date of receipt of the order, apply to the appellate authority for the annulment or modification of the assessment or penalty; and on such application, the appellate  authority may, subject to such rules of procedure as may be prescribed, confirm, annul or modify the assessment or penalty.

        ²⁰(2) The appeal under sub-section (1) shall be in such manner and in such form, as may be prescribed, and shall be accompanied by a fee of one hundred rupees.  

8. Revision: -

        (1) The Board of Revenue may, either suo-motu or on application, call for and examine the record  and proceedings of any order made by the assessing authority and pass such order thereon as it  thinks just and proper.

Provided that no application under this sub-section shall be entertained if it is not made within a  period of ninety days from the date on which the order in question was received by the applicant:

Provided further that before rejecting any application under this sub-section the  Board of  Revenue shall record reasons for such rejection.

        (2) No order shall be passed under sub-section (1) which is likely to affect any person adversely,  unless such person has been given a reasonable opportunity of being  heard  

        (3) Where a person could have appealed under Section 7 and no appeal has been   filed by him, no proceedings under this section shall be entertained upon the application of such person.  

        ²¹(4) An application for revision under sub-section (1) shall be in such manner and in such form, as may be prescribed, and shall be accompanied by a fee of rupees  two hundred and fifty which  shall, in no case be refunded.

²⁴9. Persons entitled to appear before authorities:-

       (1) A person entitled or required to appear before any authority in connection with any processing under this Act, may be represented before such authority,-

     (2) The authorisation referred to in sub-section (1) shall be in such form and accompanied by such fees, as may be prescribed.

10. Recovery of unpaid luxury tax: -^24bIf the tax or any other amount assessed or due under this Act is not paid by any properator within the time prescribed therefor in this Act or in any rule made thereunder and in other cases within the time specified therefore in the notice of demand, the properator or other person shall pay by way of interest in such manner as may be prescribed, in addition to the amound due a sum equal to,-

(i) one percent of such amount for each month or part thereof for the first three month after the date specified for its payment

(ii) two per cent of such amount each month or part there of subsequent to the first three month aforesaid.

Explanation:- Where the period of default is less than one month interest shall be calculated for the actual no of days of default.

²⁵(2) Any Luxury tax or penalty recoverable under this Act and remaining unpaid may be recovered as an arrear of public revenue due on land.

11. Service of notice: - A notice under the provisions of this Act may be served by post or by delivering or tendering it to the person to whom it is addressed or to his agent or in such other manner as may be prescribed.  

12. Power to inspect and take copies of records and accounts: -  
        (1)The assessing authority shall have access at all reasonable time to a hotel or place of business of any person liable to collect or pay the luxury tax under this Act.

        (2) The assessing authority may, at any time, with or without notice to any person referred to in sub- section (I), examine his working records and accounts and take copies of, or extracts from, any of the said records or accounts for purposes of testing the accuracy of any return or for informing itself as to the particulars regarding which information is required for the purposes of this Act or any rule made there under. 

²⁶12A. Power to stop vehicles etc: - 
        (1) No person shall transport within the State a commodity included in the Schedule exceeding such quantity  or value as may be prescribed, by any vehicle, vessel or other conveyance or by animal load unless he is in possession of a bill of sale or a delivery note containing such particulars as may be prescribed. 

        (2) The driver or any other person in charge of any vehicle, vessel or other conveyance, or the person in charge of an animal which is believed to carry a commodity included in the Schedule shall, when so required by an assessing authority or any officer authorised by the Government in this behalf, stop the vehicle, vessel, other conveyance or the animal, as long as may be reasonably necessary, and allow the  assessing authority or such other officer to examine the contents of the vehicle, vessel, other conveyance or the animal load and to inspect all records relating to the commodity included in the Schedule carried therein and shall also give his name and address as also the name and address of the owner of the vehicle, vessel or other conveyance or animal and the person to whom the commodity belongs and also the person to whom it is conveyed and such other information in his possession for the enforcement of the provisions of this Act or the rules made there under]. 

        ²⁷(3) If the officer referred to in sub-section (2) has reason to suspect that the commodity under transport are not covered by proper and genuine documents or that any person transporting such commodity is  attempting to evade payment of the tax due under this Act, he may, for reasons to be recorded in writing detain the commodity, and shall allow the same to be transported only on, the owner of the commodity, or his representative or the driver or other person in charge of the vehicle, vessel or other conveyance or animal on behalf of the owner of the commodity, furnishing security for double the amount of tax likely to be evaded, as may be estimated by such officer.

        (4) Where the owner, driver or person in charge of the vehicle, vessel, other conveyance or animal carrying  the commodity detained under sub-section (3) is found in collusion for such carrying of the commodity the vehicle, vessel, other conveyance or animals shall be released only on, the owner, driver or person in charge of it, furnishing the security determined under sub-section (2).

        (5) In case of failure to furnish the security, the officer detaining and seizing the. vehicle, vessel, other conveyance or animal shall have the power to order, the vehicle, vessel, other conveyance or animals being taken to the nearest Police station or to any Check Post or Office of the Agricultural Income Tax and Sales Tax Department for safe custody to the commodity or, the vehicle or vessel or other conveyance or animal or both.

Provided that where the owner, driver or person in charge of a vehicle, vessel, other Conveyance or animal carrying the commodity is found guilty of the offence under this sub-section for a second or a subsequent time, such vehicle, vessel, other conveyance or animals may be detained for a period not exceeding 30 days from the date of furnishing the security.

        (6) The officer detaining the goods shall record the statements, if any, given by the owner to the commodity or his representative or the driver or other person in charge of the vehicle, vessel, other conveyance or animal and shall submit the proceeding along With the connected records to such officer as may be authorized in that behalf by the Government, for conducting necessary enquiry in the matter. 

        (7) The officer authorized under sub-section (6) shall, before conducting the enquiry serve notice on the owner of the commodity and give him an opportunity of being heard and if after the enquiry, such officer finds that there has been an attempt to evade the tax due under this Act, he shall by order, impose on the commodity a penalty not exceeding twice the amount of tax attempted to be evaded, as may be estimated by such officer.

        (8) If the owner of the commodity or his representative or the driver or other person in charge of the vehicle, vessel, other conveyance or animal does not furnish security as required under sub-section (3) within fourteen days from the date of inspection of the Vehicle, vessel, other conveyance or animal, as the case may be, under sub-section (2), j the officer referred to in that sub-section may, by order, seize the commodity and in the event of the owner of the commodity not paying the penalty imposed under sub-section (7) within thirty days from the date of the order imposing the penalty, the commodity seized shall be liable to be sold for the realization of the penalty in the manner provided in sub-section (11).

        (9) When any commodity is seized under sub-section (8), the officer seizing the commodity shall issue to the owner of the commodity if present or, if the owner of the Commodity is not present, to his representative or the driver or other person in charge of the Vehicle, vessel, other conveyance or animal, as the case may be a receipt specifying the description and quantity of the commodity so siezed and obtain an acknowledgment from such person or, if such person refuses to give an acknowledgment record the fact of refusal in the presence of two witnesses.

        (10) The notice under sub-section (7) to be served on the owner of the commodity shall be given to the address as furnished in any of the documents referred to in sub- section (1) or to the address furnished by the driver or other person in charge of the vehicle, vessel, other conveyance or animal, and if there are no such documents or if the address is not furnished, a notice giving the description of the commodity, the t approximate value thereof, the description of the vehicle, vessel, other conveyance, or animal by which the commodity was carried and the date and time of detention and also indicating the provisions of the Act and rules made there under which have been violated shall be  

       (a) displayed on the notice board of the officer authorised under sub-section (6); and 

       (b) published in not more than two daily newspapers having wide circulation in the area in which the commodity was which the commodity was detained, before conducting the enquiry under Sub-section (7).     

      (11) The commodity seized under the sub-section (8) shall be sold by the officer who imposed the penalty, by public auction, to the highest bidder and the sale proceeds shall be remitted in the Government Treasury. 

      (12) If the order of imposition of penalty under Sub-section (7) or, of seizure of the commodity under sub-section (8), is set aside or modified in appeal or other proceedings, the officer authorised under sub-section (6) shall pass consequential orders for giving effect to the order in such appeal or other proceedings, as the case may be.

      (13) The owner of the commodity sold under this section shall be liable to pay expenses and other incidental charges for keeping the commodity seized in custody until the sale and also the charges for publication of the notice under Sub-section (10).

      (14) If the sale proceeds of any commodity sold exceeds the penalty imposed in respect of such commodity, such excess amount after deducting the expenses, referred to in Sub-section (13) shall be returned by the officer who conducted the sale, to the owner of the commodity on his establishing the ownership thereof.

2912B. Confiscation by authorised officers in certain cases.- (1) Notwithstanding anything contained in this Act, where an assessing authority has reason to believe that vehicle or vessel or other conveyance or animal is used for smuggling of the commodity specified in the Schedule into or out of the State, he may seize such commodity together with the vehicle or vessel or other conveyance or animal used for committing the offence of such smuggling and produce it without any unreasonable delay ,before such officer authorised by the Government in this behalf.

     
        (2) Where the officer authorised under sub-section (1) is satisfied that an offence under that sub-section had been committed in respect of the commodity produced before him he may order confiscation of the commodity so seized together with the vehicle, vessel other conveyance or animal used for committing such offence.

     
        (3) No order under sub-section (2) shall be passed, unless the person from whom the same is seized.
          (a) is given a notice in writing informing him of the grounds on which it is proposed to confiscate such commodity, vehicle, other conveyance or animal:

          (b) is given an opportunity of making a representation in writing within such reasonable time as may be specified in the notice against the grounds of confiscations, and 
           (c) is given reasonable opportunity of being heard in the matter.

        (4) No order confiscating any vehicle or vessel or other conveyance or animal shall be made under sub-section (2) if the owner or the person in charge of the vehicle or vessel or other conveyance or animal proves to the satisfaction of the officer authorised under sub-section (1) that it was used for carrying such commodity without the knowledge or conveyance of the owner himself, his agent, if any, or the person in charge of such vehicle or vessel or other conveyance or animal and that each of them had taken all reasonable necessary precautions against such use. 
        (5) Any person aggrieved by an order of confiscation under sub-section (2) may, within 30 days from the date of communication to him of such order, file an appeal, in such manner and such forms as may be prescribed, accompanied by a fee of hundred rupees before the appellate authority specifically authorised by the Government in this behalf .

        Provided that the appellate authority may admit an appeal preferred after the expiry of the said period if it is satisfied that the appellant had sufficient cause for not filing the appeal with the said period;

        Provided further that no order prejudicial to a person shall be passed without giving him an opportunity of being heard.

          
        (6) Any person aggrieved by an order under sub-section (5) may within 30 days from the date of communication to him of such order, file an application for revision ³⁰accompanied by a fee of two hundred and fifty rupees before the Board of Revenue and the decision of the Board of Revenue thereon shall be final;

        Provided that the Board of Revenue may admit an application for revision filed after the expiry of the said period if it is satisfied that the applicant had sufficient cause for not filing the application with in the said period.

        (7) Notwithstanding anything contained in sub-section (6), the Board of Revenue may, of its own motion, call for and examine the records relating to any order passed or proceeding recorded under this Act, by the appellate authority which in its opinion is prejudicial to revenue and may make such enquiry or cause such enquiry to be made and subject to the provisions of this Act, may pass such order thereon as it thinks fit:

        Provided that no order under this sub-section shall be passed unless the person affected is given a reasonable opportunity of being heard.

    
        (8) Where an order of confiscation, under this section has become final in respect of any commodity, vehicle, vessel, other conveyance or animal, such commodity, vehicle, other conveyance or animal, as the case may be, shall vest in the Government free from all encumbrances.

     
        (9) The award of confiscation under this section shall not prevent the infliction of any punishment to which the person affected thereby is liable under this Act.
        Explanation:- For the purpose of this section transport of any commodity out of or into the premises of a railway station, steamer station or the premises of any parcel office without any records referred to in sub-section (1) of section 12A shall be deemed to be smuggling of the commodity into or out of the State.

13. Power to order production of accounts and powers of entry, inspection, etc.-
        (1) The assessing authority may for the purposes of this Act, by notice, require any proprietor-

            (a) to produce or cause to be produced before it any accounts, registers, records or other documents; or 
            (b) to furnish to cause to be furnished any other information relating to the

³¹hotel or business an such proprietor shall comply with such requisition.

       (2) The assessing authority may, at any reasonable time,-

           (a) enter any hotel or place of business or any vehicle or vessel of the proprietor, and

            (b) inspect any accounts, registers, records or other documents relating to his ³²hotel or business.

        (3) if the assessing authority has reasons to believe that a proprietor is trying to evade the collection or payment of the luxury tax, it may, for reasons to be recorded, enter and search collection or payment of the luxury tax, it may, for reasons to be recorded, enter and search-

                (a) any hotel or place of business of the proprietor; or

                (b) any other place where the proprietor is keeping or is reasonably believed to be keeping any accounts, registers, records or other documents relating to his ³²hotel or business.

       Provided that no residential accommodation (not being a-hotel / shop- cum- residence  shall be entered into or searched, unless the assessing authority is specially authorised in writing by the Board of Revenue to search that accommodation.
             Explanation:- For the purposes of clause (b) 'place' includes any godown, building, vessel, vehicle, box or receptacle.

        (4) All searches under this Section shall, so far as may be, be made in accordance with the provisions of the Code of Criminal Procedure,1973 (Central Act 2 of 1974).

        (5) The assessing authority making the inspection or search may seize such accounts, registers, records or other documents as it considers necessary and on such seizure shall grant the proprietor a receipt of the things seized.

        (6) The accounts, registers, records or other documents seized under Sub-section (5) shall not be retained by the assessing authority beyond a period of thirty days from the date of seizure except with the permission of such authority as may be specified by the Government in this behalf, unless they are required for any prosecution under this Act;

        Provided that the authority specified by the Government under this Sub-section shall not give permission to retain such accounts, registers, records or other documents beyond a period of forty five days from the date of the seizure.

        (7) The power conferred by sub-sections (3) and (5) shall include-

             (a) the power to break open any box or receptacle or place or the door of any premises in which any accounts, registers, records or other documents of the proprietor are reasonably believed to be kept;

        Provided that the power to break open the door of any premises shall be exercised only after the owner or any other person in occupation of the premises fails or refuses to open the door on being called upon to do so;

              (b) the power to seal any box or receptacle, godown or building, where any accounts, registers, records or other documents are or are reasonably believed to be kept, if the owner or any other person in occupation leaves the premises or refuses to open the box or receptacle, godown or building, or is not available, and then to break open such box, receptacle, godown or building ,on the authority of an authorization in writing by the Board of Revenue:

             (c) the power to search any person who has got out of, or is about to get into, or is in, any place referred to in Clause (a) or Clause (b) of Sub-section (3) or any vessel or vehicle of any proprietor, if the assessing authority has reasons to suspect that such person has secreted about his person any accounts, registers, records or other documents.

        ³³(8) If any assessing authority while inspecting any place of business under Sub-section (2) or searching any place under Sub-section (3) finds therein any commodity not accounted for by the stockist in his accounts and other records required to be maintained under this Act or the rules made thereunder, such authority may, after giving the stockist a reasonable opportunity of being heard by order, direct the payment of a penalty, not exceeding fifty percent of the value of the commodity not accounted for as may be fixed by such authority.    

        (9) If any assessing authority curing the courses of any inspection or search of any business, place, building, godown or any other place finds that any commodity not accounted for by any stockist in his accounts or other records required to be maintained under this Act or the rules made there under and not claimed by any stockist or any person, are stored in any business place, building, godown or other place, such authority may seize the same by giving the owner of such business place, building, godown, or other place a receipt of the commodity seized and after giving him a reasonable opportunity of being heard sell the same in public auction in such manner as may be prescribed.

14.  Power to take evidence on oath, etc-

         The assessing authority, the appellant authority and the Board of Revenue shall, for the purpose of this Act, have the same power as are vested in a Civil Court under the Code of Civil Procedure, 1908 (Central Act 5 of 1908), where trying a suit, in respect of following matters, namely:-

        (a) enforcing the attendance of any person and examining him on oath or affirmation;

        (b) requiring the discovery and production of documents;

        (c) receiving evidence on affidavit;

        (d) issuing commissions for the examination of witnesses.  

  15. Refunds- (1) If any proprietor satisfies the assessing authority that the amount of the Luxury Tax paid by him exceeds the amount of such tax payable by him under this act, he shall be entitled to a refund of such excess.

        (2) appellant authority in the exercise of its appellate power or the Board of Revenue in the Exercise of its revisional power, if satisfied to the like effect, shall cause a refund to be maid by the assessing authority of any amount found to have been wrongly paid in excess.

  16. Limitation of claims for refund- 

        No claim to any refund of the luxury tax under section 15 shall be admitted, unless it is made within three years from the date of the order of assessment or, where an appeal has been preferred or where there has been a revision, within three years from the date of the order in appeal or revision, as the case may be.

  17. Penalties- 

       (1) Any person who-    

       (a) knowing submits an untrue return or fails to submit a return as required by this Act or the rule made thereunder; or

       (b) willfully act in contravention of any of the provisions of this Act or the rule made thereunder for the contravention of which no express provision for punishment is made by this Act,  

shall be punishable with fine which may extend to one thousand rupees.   

       (2) Any person who-

       (a) prevents or obstructs inspection, entry, search or seizure by the assessing authority; or

       (b) fraudulently evades the payment of Luxury Tax or other amount due from him under this Act.   

shall be punishable with imprisonment for a team which may extend to six months, or with fine with may extend to one thousand rupees, on with both.   

       (3) A person shall not be proceeded against under this Section except at the instance of the assessing authority.   

  ³⁴17A. Imposition of penalties by assessing authority-

       If an assessing authority is satisfied that any person- 

       (a) liable to pay tax under this Act,-

            (i) has failed to keep true and complete accounts; or

           (ii) has failed to submit any return as required by provisions of this act or the rules made thereunder or has submitted an untrue or incorrect return; or 

       (b) has failed to comply with all or any of the terms of any notice issued to him by or under the provisions of this act or the rule made thereunder or 

       (c) has prevented or obstructed inspection, entry, search or seizure by any officer; or 

       (d) has acted in contravention of the provisions of this act or any rule made thereunder, for the contravention of which no express provision or payment of penalty or punishment is made by this act;

            such authority may direct that such person shall pay, by way of penalty an amount not exceeding twice the amount of luxury tax or other amount sought to be evaded where it is practicable to qualify such evasion, or, an amount not exceeding five thousand rupees in any other case.

Explanation - The burden of proving that any person is not liable to the penalty under the section shall be on such person.