GUJARAT TAX ON LUXURIES (HOTELS AND LODGING HOUSES) ACT, 1977

S.1 Short title extent and commencement

       (1) This Act may be called the Gujarat Tax on Luxuries (Hotels and Lodging Houses) Act, 1977.
       (2) It extends to the whole of the State of Gujarat.
       (3) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.

S.2 Definitions

       In this Act, unless the context otherwise requires--
       (a) "charges for lodging" include charges for air conditioning, telephone, television, radio, music and extra beds and the like but do not include any charges for food, drink or other amenities.
       Explanation.-- If any question arises whether any charges are charged for lodging, such question shall be referred to the State Government and the decision of the State Government shall be final and shall not be called in question in any court;
       (b) "Collector" includes any officer appointed by the State Government to exercise the powers and perform the functions of the Collector under this Act;
       1* * * * * * * * * *
       2[(d) "hotel" means a building or part of a bui

S.3 Levy and collection of luxury of tax

       (1) Subject to the provisions of this Act, with effect on and from the date on which this Act comes into force, there shall be levied and collected from every person a tax (to be known as "luxury tax") in respect of any luxury provided to him in a hotel, at the following rates, namely :-
       1[(a)
       Where the charges for lodging are not more than two hundred rupees per day per person.
       Nil.
       (b)
       Where the charges for lodging are more than two hundred rupees but not more than four hundred rupees per day per person.
       7.5 per ent of such charge.
       (c)
       Where the charges for lodg

S.4 Mode of collection of tax

       4. Mode of collection of tax
       (1) Where the rate of charges for luxury provided in a hotel is inclusive of the charges for food or drink or other amenities, if any (being amenities referred to in clause (e) of section (2), then the Collector may, from time to time, after giving the opportunity of being heard, fix separate rates of charges for such luxury and for food or drink or other amenities, if any, being amenities referred to in clause (e) of section 2 for the purpose of calculating the tax under this Act.
       (2) Where, in addition to the charges for luxury provided in a hotel, service charges are levied and appropriated to the proprietor and not paid to the staff, then, such charges shall be deemed to be part of the charges for luxury provided in the hotel.
       1* * * * * *

S.4(a) Registration

       1[4A. Registration
       (1) No proprietor of a hotel liable to pay tax under section 3 shall provide luxury to a person in a hotel without obtaining a valid certificate of registration from the Collector:
       Provided that the provisions of this sub-section shall not be deemed to have been contravened, if the proprietor having applied for such registration as provided in this section, within six months from the date of the commencement of the Gujarat Tax on Luxuries (Hotels and Lodging Houses) (Amendment) Act, 2000, provides luxury to a person in a hotel.
       (2) Every proprietor providing luxury in a hotel shall apply to the Collector in such form, in such manner and on payment of such fee, as may be prescribed.
       (3) If the Collector is satisfied that the requir

S.4(b) Power to revoke or suspend the certificate of registration

In the event of any contravention by the holder of certificate of registration of any of the terms and conditions of the certificate of registration or of any of the provisions of this Act or rules made thereunder, the Collector may revoke the certificate of registration or suspend it for such period as he may think fit:
Provided that no certificate of registration shall be revoked or suspended without giving a reasonable opportunity of being heard to the holder thereof.]

S.5 Returns and Interest

       (1) Every proprietor liable to pay tax under this Act shall furnish a monthly return in the prescribed form to the Collector within1[fifteen days] after the expiry of the month to which the return relates.
       (2) Every such return shall show the number of rooms or other accommodation in the hotel which is intended to be occupied, the number of persons who occupied such rooms or accommodation, the periods of their stay, the days of their arrival and departure, the amount of charges recovered from them together with such other information as may be prescribed.
       (3) A proprietor furnishing a return as required by sub-section (1) shall first pay into Government treasury in the manner prescribed, the whole amount of tax due from him according to such return and enclose a receipt of such payment with the return.
     &n

S.6 Assessment and collection of tax

       (1) If the Collector is satisfied that the return furnished under sub-section (1) of section 5 is complete and he has no reason to believe that it is incorrect, he shall assess the amount of tax due from the proprietor on the basis of such return.
       (2) (a) If the Collector is not satisfied that the return furnished under sub-section (1) of section 5 is complete or he has reason to believe that it is incorrect and he thinks it necessary to require the presence of the proprietor or the production of further evidence, he shall serve on such proprietor in the prescribed manner a notice requiring him on a date and at a place specified therein either to attend and produce or cause to be produced all evidence on which such proprietor relies in support of his return or to produce such evidence as is specified in the notice.
       (b) On the date spec

S.7 Imposition of penalty in certain cases

       Where any proprietor liable to pay tax under this Act--
       (a) fails, without sufficient cause or neglects to furnish as return as required by sub-section (1) of section 5, or
       (b) While furnishing a return under sub-section (1) of section 5 fails, without sufficient cause, or neglects to pay into Government treasury the whole amount of tax due from him according to such return as required by subsection (2) of section 5, or
       (c) fails, without sufficient cause to comply with the terms of notice issued to him under clause (a) of sub-section (2) of section 6, or
       (d) has concealed the particulars of any transaction or has deliberately furnished inaccurate particulars of any transaction liable to tax,
       the Col

S.7(a) Liability of Proprietor to pay interest

       1[7A. Liability of Proprietor to pay interest
       Where any proprietor does not pay the tax within the time and in the manner provided in the Act, he shall, without prejudice to any other consequences and liabilities which he may incur, be liable to pay, in addition to the amount of tax, simple interest at two per cent of the amount of the tax due for each month or part thereof for the period for which the tax remains unpaid.]
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       1. Section 7A was inserted by Guj. 8 of 1989, s. 2.

S.8 Payment of tax and penalty

       8. Payment of1[tax, penalty and interest]
       (1) (a) The amount of tax--
       (i) due where returns have been furnished without full payment therefor,
       (ii) assessed for any period under section 6 less any sum already paid by the proprietor in respect of such period;
       (b) the amount of penalty, if any, levied under section 7;
       2[(c) the amount of interest, if any, payable under section 7A],
       shall be paid by the proprietor liable therefor into a Government treasury by such date as may be specified in the notice issued by the Collector for this purpose, being a date not earlier than thirty days from the date of service, of notice :
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S.8(a) Authorities for implementation of the Act

       1 [8A. Authorities for implementation of the Act
       (1) (a) For carrying out the purposes of this Act, the State Government may appoint;
       (i) the Commissioner of Luxury Tax for the whole of the State of Gujrat; and
       (ii) such number of other officers and persons (with suitable designation) as the State Government thinks necessary.
       (b) An officer appointed under paragraph (ii) of clause (a) shall, within the limits of such area, exercise such powers and duties conferred or imposed on any other officer by or under this Act, as the State Government may, by notification in the Official Gazette, specify.
       (c) The superintendence and control for the proper execution of the provisions of this Act and the rules made th

S.9 Appeal

       (1) Any proprietor aggrieved by the order of assessment made under section-61[or under section 20C] or by an order imposing penalty under section 72[or by the order of the Collector under section 4A or 4B] may within three months from the date of receipt of the order, make an appeal to the prescribed authority (hereafter referred to as "the appellate authority").
       (2) On receipt of an appeal under sub-section (1) the appellate authority shall, after giving to the appellant an opportunity of being heard, confirm annul or modify the assessment or penalty.
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       1 . These words, figures and letters were inserted by Guj. 2 of 1997 s. 6.
       2 . These words, figures and letters were inserted by Guj. 10 of 2000, s. 4.

S.10 Revision

       (1) The State Government or such officer (not below the rank of a Deputy Secretary to Government) as may be designated by the State Government in this behalf (hereinafter referred to as the designated officer") may suo motu 1 [2 (or on an application made in that behalf] ] call for and examine the record of the proceedings of any order made by the Collector or, as the case may be, the appellate authority and pass such order thereon as it or he thinks just and proper:
       3 [Provided that no record of any proceeding of the Collector shall be called for--
       (i) in a case where an appeal from the order passed the rein has been made, when such appeal is pending, and
       (ii) in a case where an appeal has not been made from such order, before the expiry of the time prescribed for making such appeal.]
&nbs

S.11 Court fees on appeal and application for revision

Notwithstanding anything contained in the Bombay Court-fees Act, 1959 (Bom. XXXVI of 1959), an appeal made under section 9 and an application for revision made under section 10 shall bear a court fee stamp of such value as may be prescribed.

S.12 Refund of tax

       12.1[Refunds]
       (1) If any proprietor satisfied the Collector that on account of any clerical or arithmetical error in calculating the amount of tax, the amount of2[ tax, penalty or interest paid by him] or recovered from him in respect of any period exceeds the amount with which he is properly chargeable under this Act for that period, he shall be entitled to a refund of the excess so paid or recovered.
       (2) Where as a result of an order passed under section 9 or 10 the refund of any amount becomes due to a proprietor, the Collector shall refund such amount to him.
       (3) The refund may be given either by cash payment or by deduction of such excess from the amount of tax due from such proprietor in respect of any other period.
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S.13 Offences

       (1) Any person who, being a proprietor liable to pay tax under this Act,--
       (a) furnishes or allows or causes to be furnished an incorrect or incomplete return or fails to submit the returns as required by or under the provisions of this Act, or
       (b) fraudulently evades or allows to be evaded the payment of any tax due from him, or
       (c) fraudulently makes or causes or allows to be made wrong entry in, or fraudulently omits or causes or allows to be omitted any entry from, any statement furnished or any accounts or register, or
       (d) knowingly collects from any person any amount by way of tax in excess of the amount of tax payable by him under the provisions of this Act, or
       (e) wilfully acts in contravention of

S.14 Offences by Companies

       (1) Where an offence under this Act has been committed by a company; every person who, at the time when the offence was committed, was in charge of, and was responsible to the company, for the conduct of the business of the company, as well as the company shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly :
       Provided that, nothing contained in this sub-section shall render any such person liable to any punishment provided in this Act if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.
       (2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed by a company and it is proved that the offence has been committed with the consent or conniv

S.15 Compounding of offences

(1) Subject to such conditions as may be prescribed, the Collector may, either before or after the institution of proceedings for an offence under this Act, permit any person charged with the offence to compound the offence on payment of such sum, not exceeding double the amount of tax to which the offence relates, as the Collector may determine.
(2) On payment of such sum as may be determined by the Collector under sub-section (1), no further proceedings shall be taken against the person in respect of the same offence.

S.16 Power to enforce attendance, etc

All authorities under this Act shall, for the purposes of this Act, have the same powers as are vested in a court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit, in respect of enforcing the attendance of, and examining, any person on oath or affirmation or for compelling the production of any document.

S.17 Power of inspection of accounts and documents and search of hotels

       (1) The Collector may, subject to such conditions as may be prescribed, require any proprietor to produce before him the working records of accounts, registers or other documents or to furnish any information relating to the business of the hotel as may be necessary for the purposes of this Act.
       (2) All working records of accounts, registers or other documents relating to the business of any hotel shall, at all reasonable times, be open to inspection by the Collector, and the Collector may take or cause to be taken such copies or extracts of such records as may be necessary for the purposes of testing the accuracy of the charges for such luxury or for informing himself as to the particulars regarding which information is required for the purposes of this Act or any rules thereunder as would appear to him necessary.
       (3) If the Collector h

S.18 Certain provision of Limitation Act to apply to appeal and revision applications

The provisions of sections 4, 5 and 12 of the Limitation Act, 1963 (36 of 1963) shall, as far as may be, apply in computing the period for making an appeal under section 9 or an application for revision under section 10.

S.19 Bar of proceedings

(1) No suit shall lie in any Civil Court to set aside or modify any assessment made or order passed under this Act.
(2) No suit, prosecution or other legal proceeding shall lie against the State Government or any officer or employee of the State Government for anything which is in good faith done or intended to be done in pursuance of this Act or any rules made thereunder.

S.20 Delegation of powers

The Collector may delegate to any officer not lower in rank than that of a Deputy Collector, all or any of the powers conferred or duties imposed on him by or under this Act.

S.20(a) Power to reduce rate of tax

       1[20A. Power to reduce rate of tax
       (1) The State Government may, by notification in the Official Gazette, reduce any rate of tax specified in sub-section (1) of section 3.
       (2) Every notification issued under sub-section (1) shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make, during the session in which it is so laid or the session immediately following.
       (3) Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.
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       1. Sectio

S.20(b) Exemption

       (1) The State Government may, if it considers necessary so to do in the public interest, by notification in the Official Gazette, exempt any person or persons to whom any luxury is provided by such hotel or class of hotels from payment of whole or part of the tax, subject to such conditions as may be specified therein.
       (2) Every notification issued under sub-section (1) shall be laid for not less than thirty days before the State Legislature as soon as possible after it is issued and shall be subject to rescission by the State Legislature or to such modification as the State Legislature may make during the session in which it is so laid or the session immediately following.
       (3) Any rescission or modification so made by the State Legislature shall be published in the Official Gazette and shall thereupon take effect.

S.20(c) Liability to pay tax in event of breach of conditions of exemption

(1) Where any person or persons to whom luxury is provided in a hotel or class of hotels is exempted under section 20B from whole or any part of the tax subject to any condition, then, in the event of breach or any such condition, the proprietor of such hotel shall, notwithstanding such exemption, be liable to pay tax in relation to the luxury provided in such hotel.
(2) If the Collector has reason to believe that the proprietor is liable to pay tax under sub-section (1), he shall serve on the proprietor a notice requiring him on a date and place specified therein, either to attend and produce or cause to be produced all evidence on which such proprietor relies in connection with his liability under this section or to produce such evidence as specified in the notice. On the date specified in the notice, or as soon as may be thereafter, the Collector shall, after considering all t

S.21 Power to make Rules

       (1) The State Government may, by notification in the Official Gazette make rules for carrying out the purposes of this Act.
       (2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :--
       1[(aa) The form in which, the manner in which and fee on payment of which the proprietor shall apply under sub-section (2) of section 4A;
       (aaa) The form in which and the terms and conditions subject to which certificate of registration may be issued under sub-section (3) of section 4A;]
       (a) the form in which a monthly return shall be furnished by a proprietor under sub-section (1) of section 5, the other information which shall be shown in a return under sub-section (2) of