Section 16(1) in The Maharashtra Tax on Luxuries Act, 1987
(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.
