(1)No stockist shall, while being liable to pay luxury tax under Section 4, hold any stock of luxuries in any premises, godown, warehouse or any other place in Orissa unless he obtains, on application, a licence in the prescribed form.(2)If a stockist fails to obtain a licence under Sub-section (1) within a period of one month of the commencement of this Act or within a period of Seven days from the date of his liability under Section 4, whichever is later, the Commissioner may, after giving him a reasonable opportunity of being heard, impose, by way of penalty, a sum being not less than five thousand rupees and not more than ten thousand rupees, for each month of delay in obtaining the licence and direct the stockist by a notice to pay the amount of such penalty into a Government Treasury within the date specified in the notice :Provided that no penalty under this Sub-section shall be imposed in respect of the same fact for which a prosecution under sub-section (2) of Section 18 has been instituted and no prosecution would lie vice versa.(3)Every stockist required to obtain a licence under Sub-section(1) shall make an application in this behalf in the prescribed manner to the Commissioner.(4)If the Commissioner is satisfied that the application for licence is in order, he shall, subject to such conditions and restrictions and in such manner as may be prescribed, grant the applicant a licence in the prescribed form.(5)Where a stockist makes an application for licence under Subsection (3) within the period referred to in Sub-section (2), such stockist shall be deemed to have complied with the provisions of Sub-section (1) during the pendency of his application for the grant of the licence.(6)Where a licence has been granted to a stockist under Sub-section (4), the Commissioner may, if he is of opinion that it is necessary or expedient so to do for the proper realisation or recovery of the luxury tax under this Act, at any time while such licence is in force, by an order in writing and for reasons to be recorded therein, require the stockist to furnish within such period and in such manner as may be prescribed, a security for the proper payment of the luxury tax payable by him under this Act :Provided that no order shall be passed under this Sub-section without giving the stockist an opportunity of being heard.(7)The Commissioner may, on application or otherwise, from time to time amend the licence of a stockist.(8)Where the liability of a stockist to whom a licence has been granted under Sub-section (4), to pay the luxury tax under this Act has ceased, such licence may, on application by him, be cancelled by the Commissioner in the manner prescribed.(9)A licence granted to a stockist under Sub-section (4) may be cancelled by the Commissioner after due notice to such stockist if he is satisfied that the stockist has failed to pay the luxury tax, penalty or interest payable under this Act or to furnish the security under Sub-section (6) :Provided that the licence so cancelled may be restored if the stockist to whom the licence was granted pays the arrear luxury tax, penalty and interest and furnishes a receipted challan therefor.
