Section 6 in The Kerala Tax on Luxuries Acts, 1976
6. Assessment and collection of tax.
(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.(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 judgement: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 subsection unless the proprietor has been given a reasonable opportunity of being heard.(4)Any final assessment under this section shall be completed within a period of four years from the expiry of the year to which the assessment relates.Provided that all assessments relating to the years, upto and including the year 2007-2008, pending as on 31st day of March, 2013, shall be completed on or before the 31st day of March, 2014.Provided further that in cases where any investigation or inquiry is pending under this Act or where any assessment cannot be completed within the period specified under this section, the Deputy Commissioner may, for good and sufficient reasons, extend the period of completion of the assessment including escaped assessment under sub-section (5) beyond the period specified in this section.(5)Where for any reason, the whole or any part of the business of a proprietor has escaped assessment to tax in any year or has been under-assessed at a lower rate than the rate at which it is assessable or any deduction has been wrongly made there from, the assessing authority may at any time within a period of five years from the expiry of the year to which the tax relates, proceed to determine to the best of its judgement, the turnover which has escaped assessment to tax or has been under-assessed or has been assessed at a lower rate than the rate at which it is assessable and assess the tax payable on such turnover, after issuing a notice to the proprietor and after making such enquiry as it may deem fit:Provided that before making such assessment under this subsection the proprietor shall be given a reasonable opportunity of being heard.(6)(a)An assessing authority or an appellate or revising authority may on application or otherwise at any time within three years from the date of any order passed by it, rectify any error apparent on the face of records:Provided that no such rectification which has the effect of enhancing an assessment or any penalty shall be made unless such authority has given notice to the person affected thereby and has allowed him a reasonable opportunity of being heard.(b)Where such rectification has the effect of reducing an assessment or penalty; he assessing authority shall make refund to the person entitled thereto.(c)Where any such rectification has the effect of enhancing assessment or penalty the assessing authority shall give the proprietor or other person a revised notice of' assessment or penalty and thereupon the provisions of this Act and the rules made there under shall apply as if such notice had been given in the first instance,Explanation. - The liability to pay tax or other amount shall arise only from the date specified in the revised notice.
