Section 16 in The Maharashtra Tax on Luxuries Act, 1987
16. Imposition of penalty and levy of interest.
(1)If, while assessing or reassessing the amount to tax due from a hotelier under any provisions of this Act or while passing any order in any appeal, revision or rectification proceedings, it appears to the Commissioner that such hotelier has-(a)failed to apply for registration as required by section 8 or has carried on business, without being registered, in contravention of section 8;(b)failed, without reasonable cause, to comply with any notice in respect of the proceeding under section 13, 15, 30 or 38: or(c)failed to disclose any transaction of receipt or has failed to furnish return by the prescribed date or has failed to show in the (return the appropriate liability to pay tax or has failed to disclose fully and truly all material facts necessary for the proper and correct quantification of the tax liability.then the Commissioner may, after giving the hotelier an opportunity of being heard, by order in writing impose upon the hotelier by way of penalty, in addition to any tax assessed or reassessed or found due in the appeal or revision or rectification proceedings, as the case may be, -(i)in the case covered by clause (a), a sum not exceeding the amount of the tax payable by the hotelier for the period during which he carried on business, without being registered, in contravention of section 8;(ii)in the case covered by clause (b), a sum not exceeding rupees one thousand; and(iii)in the case covered by clause (c), a sum exceeding the amount of the tax found payable under the said clause.(2)[ (a) If a hotelier does not pay the tax within the time he is required by or under the provisions of this Act to pay it, then he shall be liable to pay by way of simple interest, in addition to the amount of such tax, a sum equal to [one and a quarter per cent.] [Sub-section (2) was substituted by Maharashtra 17 of 1993, section 20.] of the amount of such tax for each month or part thereof after the last date by which he should have paid such tax.Explanation. - For the purposes of this clause in relation to the tax payable according to a return or, as the case may be, to the payment of tax for the period, covered by a return, a hotelier or a person shall, notwithstanding anything contained in section 18 or any other provisions of this Act or the rules made thereunder, be deemed not to have paid the amount of such tax within the time he is required by or under the provisions of this Act to pay it, if he has not paid the full amount of such tax on or before the last date prescribed for furnishing of such return as required under the rules made under this Act; and accordingly, if he has not paid the full amount of such tax or has paid only the part of the amount of such tax by such date, he shall be liable under this clause for payment of interest after such date on the full or part, as the case may be, of the amount of such tax which has remained unpaid on such date.(b)If any tax other than the tax on which interest is leviable under clause (a) has remained unpaid on the date prescribed for filing the last return in respect of any period of assessment, then the hotelier shall be liable to pay by way of simple interest, a sum equal to [one and a quarter per cent.] [These words were substituted for the words 'two per cent' by Maharashtra 13 of 2004, Section 52] of such tax for each month or part thereof from the date immediately following the date on which the period for which the dealer or person has been assessed expires till the date of order of assessment and where any payment of such unpaid tax, whether in full or part, is made on or before the date of order of assessment, the amount of such interest shall be calculated by taking into consideration the amount of and the date of such payment. If as a result to any order passed under this Act, the amount of tax, which had so remained unpaid, is enhanced or reduced, as the case may be, the interest shall be enhanced or reduced accordingly:Provided that, the commissioner or any appellate authority may, for reasons to be recorded in writing, remit the whole or any part of the interest payable in respect of any period.]
