GOVERNMENT OF KERALA  

      Law (Legislation-A) Department

NOTIFICATION

No. 4311/Leg. A2/94/Law.

Dated, Thiruvananthapuram, 29th July,  1994/
     7th Sravana, 1916.

The following Act of the Kerala State Legislature is hereby published for general information. The Bill as passed by the Legislative Assembly received the assent of the Governor on the 29th day of July, 1994.

                                             By order of the Governor
                                                   A. M. SIVADAS,  
                                                    Law Secretary.

PRINTED AND PUBUSHED BY THE S. G. P.  AT THE GOVERNMENT PRESS, THIRUVANANTHAPURAM, 1994
33/3204/94/MC.

ACT 19 OF 1994

THE KERALA FINANCE ACT, 1994

An Act to give effect to certain financial proposals of the Government of Kerala for the financial year 1994-95.

Preamble.—WHEREAS it is expedient to give effect to certain financial proposals of the Government of Kerala for the financial year 1994-95;

BE it enacted in the Forty-fifth Year of the Republic of India as follows:—

1. Short title and commencement.- (1) This Act may be called the Kerala Finance Act,  1994.

2.     The Revenue Divisional Officer shall, in fixing the fair value of
a land under sub-section (1), have regard inter alia to the following matters,
namely:—

(a) development of the area in which the land is situate such as the commercial importance, facilities for water supply, electricity, transport and communication;

(b)proximity of the land to markets, bus stations, railway stations,
factories, educational institutions or other institutions;

(c)the geographical lie of the land, the nature of the land, such as
dry, waste, wet or garden land, fertility, nature of crop, yielding capacity and cost of cultivation; and

(d)such other matters as may be provided in the rules made under
this Act.

(3)    after section 45, the following section shall be inserted, namely:—

         "45A. Instrument not bearing stamp of sufficient amount as per fair value of land how to be dealt with.—(1) Notwithstanding anything contained in this Act, the registering officer shall, while registering an instrument transferring any land, other than an instrument of partition, settlement or gift among the members of a family, chargeable with duty verify whether the value of land or the consideration set forth in the instrument is the fair value of that land.

(2)Where, on verification the registering officer finds that the value of the land or the consideration set forth in the instrument is less than the fair value of the land fixed under section 28A, he shall, by order, direct the payment of proper stamp duty on the fair value of the land fixed under section 28A within a period of seven days from the date of the order and on payment of the deficit stamp duty, the instrument shall be duly registered.

(4) Any person aggrieved by an order under sub-section (3) may, within thirty days from the date of that order, appeal to the Collector within whose jurisdiction the land is situate.

(5) The Collector shall hear and dispose of the appeal in such manner as may be prescribed by rules made under this Act in that behalf and his decision thereon shall be final.";

(4)    after section 45B, the following section shall be inserted, namely:—

"45C. Purchase of land by Government.—(1) Notwithstanding any­thing contained in section 45A or section 45B, where a registering officer while registering any instrument, other than an instrument of partition, Settlement or gift, among the members of a family, transferring any pro­perty, has reason to believe that the value of the land or the consideration set forth in the instrument is less by fifteen per cent or more of the fair value of the land fixed under section 28A, he may refer the same to the Collector for an order for purchase of the land by the Government.

(2)On receipt of a reference under sub-section (1), the Collector shall, after giving the parties a reasonable opportunity of being heard   and    after holding an enquiry in the manner as may be prescribed by rules made under this Act, by order, determine the duty based on the fair value of the   land and direct the person liable to pay the duty to pay the deficit amount of duty together with such penalty not exceeding twenty   five per cent   of   the fair value of the land within such time as he may fix, which shall not be less than twenty-one days  and, on payment of such duty, the  Collector shall endorse a certificate of such payment on the instrument under his seal and signature and thereupon the instrument shall be duly registered by the registering officer.

(3)Where the person fails to comply with the direction under sub-
section (3), the Collector shall order for the purchase of the land by the
Government by paying the value of land or consideration set forth in the
instrument together with an amount equal to twenty five per cent of such
value or consideration.

(4)Where an order for the purchase of any land by the Government
is made under sub-section (3), the Government shall pay by way of consideration    for such purchase an amount equal to the amount specified in the
said sub-section and on payment of such amount, the land shall vest in the
Government free from all encumbrances.      

(5)Any person aggrieved by an action under sub-section (4) may,
within  thirty days of the date of purchase by the Government, appeal to the
District Court within whose jurisdiction the property purchased is situate.”;

3. Amendment of Act 15 of 1963.—In the Kerala General Sales Tax Act, 1963 (15 of 1963),—

(1)   in section 5,—

(i)   In sub-section (1),—

(b)in clause (iii), for the words "rupees one lakh", the words “two
lakh rupees" shall be substituted;

“Provided that where a tax has been levied under this sub-section or under section 5A, in respect of the sale or purchase of goods specified in the Second Schedule and iron and steel specified in the Sixth Schedule, and suchgoods are sold in the course of interstate trade or commerce, the tax so levied shall be refunded to such person in such manner and subject to such sections as may be prescribed.";

(ii)    sub-section  (2)  shall be omitted;
(iii)   in  sub-section   (3),—

(a)  for   clause (i),   except the   second  proviso,   the following clause shall be substituted, namely:—

"(i) Notwithstanding anything, contained in sub-section (1), the tax payable by a dealer in respect of any sale of industrial raw materials, component parts, containers or packing materials—

(a)which are liable to tax at a rate higher than two and a half per cent but not higher than for percent when sold to Indus-­ trial units for use in the production of finished products inside the State for sale or for packing of such finished products inside the State for sale, as the case may be, shall be at the
rate of only two and a half per cent; and

(b)which are liable to tax at a rate higher than four per cent when sold to industrial units for use in  the   production of finished products inside the State for sale or  for packing of such finished products inside the State for  sale, as the case may be, shall be at the rate of only three per cent,

Provided that this clause shall not apply where no tax is payable by the said industrial units on such finished products either under this Act or under the Central Sales Tax Act, 1956 (Central Act 74 of 1956) or when such finished products are exported out of the territory of India.";

(b)   in the second proviso, for the words "this sub-section", the words "this clause” shall be substituted;
(iv)  for sub-section (4), the following sub-section shall be substituted, namely:—
"(4) Notwithstanding anything contained in sub-section (1), every dealer registered under sub-section

(3) of section 7 of the Central Sales Tax Act, 1956 (Central Act 74 of 1956), shall, whatever be the quantum of his total turnover, pay tax on his taxable turnover for that year,—

(i) in respect of the sale of the goods, with reference to the purchase of which he has furnished a declaration under sub-section (4) of section 8 of the said Central Act; and
(ii) in respect of the goods manufactured out of the raw materials, with reference to the purchase of which he has furnished a declaration under sub-section (4) of section 8 of the said Central Act."

(v)     in sub-section (5), the words, figure and brackets  "or sub-section (2)” shall be omitted;

(2)   in section 5A,—
(i) in sub-section (1), the figure and brackets "(2)" shall be omitted; (ii) in sub-section (2),—

(a) for the words "one lakh rupees", the words "two lakh rupees" shall be substituted;

(b) the proviso shall be omitted;

(iii) sub-section (3) shall be omitted;

(3) in section 7,—

(i)   for sub-section (1), the following shall be substituted, namely:—

"(1)   Notwithstanding anything contained in sub-section (1) of section 5,—

(a)    any dealer in gold or silver ornaments may, at his option, "instead of paying tax in accordance with the provisions of that sub-section, pay tax at one hundred and fifty per cent of the maximum amount of tax payable byhim for a period of twelve months in a financial year, as conceded in the return or accounts, in any of the three financial years immediately preceding the assessment year:
Provided that where during any such preceding year, the dealer has not transacted business for any period in a financial year, the tax payable or the twelve months shall be calculated proportionately on the basis of the tax payable for the period during which such dealer had transacted business; and

(b) any mechanised crushing unit producing granite metals may, atits option, instead of paying tax in accordance with the provisions of that sub-section, pay tax at the following rates, namely:—

(i)for each crushing machine of size 36 x 9. .Rs. 50,000 per annum

(ii) for each crushing machine of size 16x 9.. Rs. 25,000 per annum

(iii) for each crushing machine of size 12 x 9.. Rs. 12,500 per annum;"

(ii)    Sub-sections (2) to (6), both inclusive, shall be omitted;


(iii)    for the proviso to sub-section (7A), the following proviso shall be substituted, namely: —


"Provided that in respect of a contract entered into on or after the 1st day of April, 1984 and the amount of which does not exceed fifty lakh rupees, the contractor may, if he has not opted for payment of tax in accordance with the provisions of this sub-section, opt to pay tax at five per cent of such contract amount.";

(iv)  after sub-section (7A), the following sub-sections shall be inserted, namely:—


"(7AA) Notwithstanding anything contained in sub-section (7) or sub-section (7A), any contractor who voluntarily files return for any period Commencing on the 1st day of April, 1984 and pays tax at the rate specified in sub-section (7) or sub-section (7A) on or before the 30th day of September 1994 shall be entitled to a reduction in the compounded rate of tax by half per cent in respect of civil contracts and one per cent in respect of other contracts.

(7AAA) Nothing contained in sub-section (7A) or sub-section (7AA) shall be construed as permitting the reopening of an assessment already completed before the 1st day of April, 1994, for the purposes of the said sub­sections.";

(v) for sub-sections (7B), (8) and (9), the following sub-sections shall be substituted, namely:—
"(7B) Every awarder shall deduct tax at the rate of two per cent in respect of civil contracts and five per cent in respect of other contracts from the payments made by him to any contractor liable to tax under Section 5, at every time, including advance payments, and remit it to the Government within seven days from the date of such deduction in the pres­cribed manner.

(8)The option referred to in sub-section (1) shall be exercised by an
application to the assessing authority and the option referred to in sub-sections
(7) and (7A) may be exercised either by an express provision in the agreement
for the contract or by an application to the assessing authority, to permit
him to pay the tax in accordance with any of the said sub-sections.

(9) On receipt of an application under sub-section (8), the assessing
authority may grant the permission or, for good and sufficient reasons to be
recorded in writing, reject the same:

Provided that no application shall be rejected without giving the person affected thereby an opportunity of being heard.";

(4)    in section 23,—

"(3A) (i) Where, as a result of any order in appeal or revision or in any other proceeding, the tax or any other amount due under this Act is, finally settled, the interest leviable under sub-section (3) shall be on the amount as finally settled and the period during which the collection of tax or other amount is stayed by any Court or any other authority shall not be excluded in computing the period for calculating interest under the said sub-section.

  (5)    in section 28, after sub-section (8), the following sub-section shall be inserted, namely:—
"(8A) If any officer, during the course of any inspection or search of any business place, building, godown or any other place finds that any goods not accounted for by any dealer in his accounts or other records required to be maintained under this Act and not claimed by any dealer or any other person are stored in any business place, building, godown or other place, such officer may seize the same by giving the owner of such business place, building, godown or other place a receipt for the goods seized and after giving him a reasonable opportunity of being heard, sell the same in public auction n the manner as may be prescribed.";
(6)     in section 29, after sub-section (2), the following sub-section shall be inserted, namely:—
"(2A) Notwithstanding anything contained in sub-section (2), no person shall transport within the State across or beyond the notified area or within two kilometers from the border area, by head load or by animal load any consignment of cashew, rubber, cardamom, pepper or ginger exceeding such quantity as may be prescribed, unless he is in possession of the documents specified in sub-section (2).";
(7)     in section 29A,—

contained in this Act or the rules made there under, allow the goods to be transported after realising the tax in respect of the goods transported. If the driver or the person in charge of the goods or the dealer whose goods are under transport refuses to pay such tax, the goods shall be detained by such officer and shall be dealt with in the manner provided in this section as if the transport of goods were an attempt to evade payment of tax due under this Act.";

(iv)    to sub-section (3), the following proviso shall be added, namely;—

         "Provided that where tax is collected under the second proviso to sub­section

(8)    after section 30B, the following  sections   shall   be   inserted, namely:—

            (2) Where the authorised officer is satisfied that an offence under sub­section (1) has been committed in respect of the goods produced before him under that sub-section, he may order confiscation of the goods so seized together with the vehicle or vessel used in committing such, offence.

    (3)    No order under sub-section (2) shall be passed, unless the person from whom the same is seized—

(a) is given a notice in writing informing him of the grounds on
which it is proposed to confiscate such coffee, rubber, cardamom, ginger,
pepper, arecanut, cashew nut or iron and steel, vessel or vehicle;

(b) is given an opportunity of making a representation in writing
within such reasonable time as may be specified in the notice against the
grounds of confiscation; and

(c )is given a reasonable opportunity of being heard in the matter.

(4) No order confiscating any vehicle or vessel shall be made under sub-section (2), if the owner or the person in charge of the vehicle or vessel proves to the satisfaction of the authorised officer that it was used in carrying such coffee, rubber, cardamom, ginger, pepper, arecanut, cashew nut or iron and steel without the knowledge or connivance of the owner himself, his agent, if any, or the person in charge of such vehicle or vessel and that each of them and taken all reasonable and necessary precautions against such use.

(5) Any person aggrieved by an order of confiscation under sub-section (2) may, within thirty days from the date of communication to him of such order, file an appeal, in such manner and in such form as may be prescribed, before the Deputy Commissioner, and the Deputy Commissioner may pass such orders thereon as he may think fit:

         Provided that the Deputy Commissioner may admit an appeal preferred after the expiry of the said period, if he is satisfied that the appellant had sufficient cause for not filing the appeal within the said period:

        Provided further that no order prejudicial to a person shall be passed without giving him an opportunity of being heard.

 (6) Any person aggrieved by an order under sub-section (5) may, within thirty days from the date of communication to him of such order, file an application for revision before the Board of Revenue, and the decision of the Board of Revenue thereon shall be final:
      Provided that the Board of Revenue may admit an application for revision filed after the expiry of the said period if it is satisfied that the applicant had sufficient cause for not filing the application within the said period.

 (7)    Where an order of confiscation under this section has become
final in respect of any goods, vehicle or vessel, such goods, vehicle or vessel,
as the case may be, shall vest in the Government free from all encumbrances.
(8)     The award of confiscation under this section shall not prevent the
infliction of any punishment to which the person affected thereby is liable
under this   Act.
30D. Procedure as to perishable goods seized, under section 30C—(1) Not-withstanding anything contained in section 30C, the authorised officer may direct the sale of any goods seized under that section which is subject to speedy and natural decay and remit the sale proceeds into the Government Treasury.
 (2) The authorised officer may deal with the proceeds of the sale of goods under sub-section (1) in the same manner as he might have dealt with the goods if it had not been sold.";

(9)     after section 45A, the following section shall be inserted, namely:—
"45AA. Penalty for default of payment of tax.—(1)Where an assessee makes default in payment of tax or any other amount due under this Act within the time specified in the notice of demand, he shall, in addition to the tax or other amount in arrears and the amount of interest payable under sub-section (3) of section 23, be liable to pay, by way of penalty such amount and in the case of a continuing default, amount at such rate for every day during which the default  continues,  asthe assessing authority may direct, so, however, that the total amount of penalty shall not exceed the amount tax or other amount in arrears.

"21.   Cardamom, cloves, nutmug and mace.

(b)    brought from outside        At the point of first   sale  in   the
the State                                    State by a dealer who is liable to
tax under section 5                                    8";
(g)    after serial number   64   and the entries against it, the   following serial number and entries shall be inserted, namely:—

"(a) raw rubber, latex,
dry ribbed sheet of all RMA
Grades, trees, lace, earth scrap,
ammoniated latex, preserved latex,
latex concentrate, centrifugal latex,
dry crepe rubber, dry block
rubber, crumb rubber, skimmed
rubber and all other qualities and
grades of latex

   “150A. Wheat products, that is to say, maida, atta, suji, rava
          and resultant bran.                                               do.                               4.";
Explanation:—When tax is levied on wheat products, tax, if any, paid on wheat from which such wheat products are produced .shall be deducted.

         (v)    in serial number 156, in column (4), for the figure "8", the figure
"6" shall be substituted;

(11)    in the Second Schedule—

(a)in serial number 2, sub item (ii) in column (2) and the entries relating thereto in columns (3) and (4) shall be omitted;

(b)for the entries against serial number 4, the following shall be substituted, namely:—          

(a)  purchased within the State       At the point of last purchase in the State by a dealer who is liable to                                                      tax under section 5                            4
(b) brought from outside the          At the point of first sale in State the State by a dealer who is
                                                    liable to tax under section 5                4

(a) purchased  within  the       At the point of last purchase State in the State by a dealer who is liable to            state                                 tax under section 5        4

33/3204/94/MC.         

    (d) against serial number 9A, in column (2), the words "and wheat products" and the Explanation thereunder shall be omitted;

(12)     in the Third   Schedule—  
         (a)     in the entries against serial number  33,  for the words  "crushed metals", the words "crushed metals produced otherwise than by mechanized crushing" shall be substituted;
         (b)    in the entries against serial number 34, the words "Lime Shell"  shall   be   omitted;
         (c)    after serial number 47 and the entries against it, the following
                serial    number and    entries shall be   inserted,   namely:—        "47A.    Pulppaya   and   thazhappaya.";

(13)     in the Fifth  Schedule—

(a)     against serial  number  3,—

        (i) in column (2), for the words "laminated sheets and expanded polystyrene of all kinds", the words           "Laminated sheets, thermocol     and   expanded   polystyrene   of   all   kinds"   shall be substituted;
        (ii) "in columns (4), (6) and (8),for the figures "10", “5” and "15", the figures "6", "6" and "12" shall,           respectively, be substituted;

(b)     against serial number 4, in  columns (4), (6) and (8), for the figures "10" "5"and "15", the figures "6" "6" and "12" shall,   respectively,   be   substituted;

(c)    serial number 6 and the entries against it shall be omitted;

(d)     against serial number 8, in columns   (4) and (6),  for the figures "4" and   "4",   the figures   "6"   and   "2",    shall,   respectively, be substituted;

(14)    in the Sixth Schedule—
(a) serial number 1, shall be renumbered as serial number 1A and before serial number IA as so renumbered, the following serial number and entries shall be inserted, namely:—
"1.    Iron and Steel that is to say:

(f)       Sheets, hoops, strips and skelp   both
block and galvanised,   hot   and   cold
rolled   plain   and corrugated,   in all
qualities, in straight length and in coil
form, as   rolled   and   in rivetted con-                                                  4
dition
(g)      Plates both plain and chequered in all
qualities                                                                                                4
(h)     Discs, rings, forgings and steel castings                                         4
(i)       Tool, alloy and special steels  of any
of the above categories4
(j)   Steel melting scrap in all forms including    steel skull turnings and borings 4                                                                                                                                                                             (k) Steel tubes, both welded and scam-less of all    diameters and lengths, including tube fitting 4

(l)     Tin   plates   both   hot   dipped   and
electrolytic and  in free plates 4
(m) Fish plate bars, bearing plate bars,
crossing sleeper bars, fish plates,
bearing plates, crossing sleepers, rails-heavy and light crane rails       4
(n)     Wheels, tyres, axles and wheel sets 4
(o)     Wire rods and wires-rolled, drawn,
galvanised aluminised tinned or coated
by copper                                                                                          4
(p)     Defectives, rejects,   cuttings   or   end
pieces of any of the above categories                                                  4";
(b)    after serial number 4 and the entries against it, the following serial number and entries shall be inserted, namely:—

      “5 Voltage stabiliser                                                                                6”.

4.   Amendment of Act 19 of 1976.—In the Kerala Motor Vehicles Taxation Act, 1976 (19 of 1976), in the Schedule,—    

(1)for item 3, the following item shall be substituted, namely:—

"3.    Goods vehicles:

(a)Motor cycle trucks not exceeding 300 Kg. in laden weight               88
(b)Vehicles not exceeding  1000 Kg. in laden weight                           143

(c)      Vehicles                                but not                                   in laden
exceeding   1000 Kg.                      exceeding    1500 Kg.           weight      275

(d) Do.     1500 Kg.                        do.        2000 Kg.                do.            363

(e) Do.     2000 Kg.                        do.        3000 Kg.                do.            473
(f)  Do.     3000 Kg.                       do.        4000 Kg.                do.            561
(g)  Do.     4000 Kg.                      do.        5500 Kg.                do.            748
(h)  Do.     5500 Kg.                      do.        7000 Kg.                do.            935
(i)   Do.     7000 Kg.                     do.         9000 Kg.                do.          1144
(j)   Do.     9000 Kg.                     do.        9500 Kg.                do.          1221
(k)  Do.     9500 Kg.                     do.        10500 Kg.              do.          1375
(1)  Do.     10500 Kg.                   do.        11000 Kg.              do.          1529

Vehicle                               but not                                   in laden
exceeding                           exceeding                                  weight
(m) Do.    11000 Kg.                do.       12000 Kg.                do.   1683
(n)  Do.     12000 Kg.               do.       13000 Kg.                do.    1804           
(o) Do.      13000 Kg.               do.       14000 Kg.                do.    1936
(p)  Do.     14000 Kg.   do.        15000 Kg.                            do.    2068
(q) Do.    15000 Kg.  in laden weight 2068 plus Rs. 44 for every
                                       250 Kg. or part thereof
                                       in excess of 15000 Kg.

(r)    Tax payable in respect of trailers used for carrying goods—

(i)    for each   trailer not exceeding 1000 Kg. in laden weight    99
(ii)    for each trailer                        but not                               in laden
exceeding        1000 Kg.    exceeding   1500 Kg.     weight       209
(iii)         do.     1500 Kg.          do.        2000 Kg.        do.        286
(iv)         do.     2000 Kg.          do.       3000 Kg.          do.       385
(v)         do.      3000 Kg.           do.       4000 Kg.         do.       528
(vi)        do.      4000 Kg.            do.      5500 Kg.          do.       671
(vii)       do.       5500 Kg.          do.       7000 Kg.           do.       825
(viii)       do.       7000 Kg.           do.     9000 Kg.           do.       1001
(ix)         do.      9000 Kg.            do.     9500 Kg.           do.       1045
(x)         do.       9500 Kg.            do.    10500 Kg.          do.       1144
(xi)         do.      10500 Kg.          do.    12000 Kg.           do.       1276
(xii)         do.    12000 Kg.           do.    13000 Kg.           do.        1364
(xiii)       do.   13000 Kg.             do.    14000 Kg.             do.       1441
(xiv)       do.   14000 Kg.             do.    15000 Kg.             do.      1551
(xv)        do.  15000 Kg. in laden weight 1551  plus Rs. 44 for every 250 Kg. or part thereof in excess of 15000 Kg”;

 (2)    in item 3A, under the heading ‘Class of vehicle’, for the words “Private Service vehicles”, the words “Private service vehicles and  Omni buses for private use” shall be substituted.
(3)    in item 4,—                                                                 
             (i)    in sub-item (i), for clauses (a) and (b), the following clauses shall be substituted, namely:— 

(1) in the long title, the words "provided in hotels and lodging houses"
shall be omitted;

(2)in the preamble, the words "provided in hotels and lodging houses"
shall be omitted;

(3)in section 1, for sub-section (1), the following shall be substituted,
namely:--                                                                                                              

"(1)   This Act may be called the Kerala Tax on Luxuries Act, 1976.";

(4)    in section 2,—

(i) after clause (e), the following clause shall be inserted, namely:—
"(ee)   luxury' means a commodity or service that ministers comfort or pleasure;"; (iii)after clause (h), the following clauses shall be inserted, namely:

"(i)     'Schedule' means a Schedule appended to this Act;
(j)      ‘State' means the State of Kerala;
(k) 'stockist’ means a person who, for the purpose of business, manufactures, produces, brings or causes to be brought in the State a commodity included in the Schedule or to whom such commodity is despatched from any place out­side the State for supply within the State or who supplies such commodity within the State, whether by way of sale or otherwise.";

(i) in sub-section (1), after the words "any luxury provided in a hotel", the words "and in respect of a commodity included in the Schedule" shall  be   inserted;
(ii) for sub-section (2), the following sub-section shall be substituted, namely :—

“(2)   The luxury tax shall be payable by the person residing in a hotel at the following rates, namely:—

(a) where the rate of charges for accommodation
for   residence   and   other   amenities   and
services    (exclusive   of  charges   for   food,
drink   and   telephone   calls) is   less   than
rupees forty per day per person                                                                             Nil

(b) where such rate is not less than forty
rupees, per day per person                                                                             Seven and half per cent of such rate

(c) where the rate of charges for accommo-­
dation for residence in air conditioned
rooms and other amenities and  services
(exclusive of charges for food, drink and
telephone calls) is not  less than  rupees
forty per day per person                                                                            Ten   per cent of    such rate.";

 

(6)   after section 4, the following sections shall be inserted, namely:¾
 “4A. Collection of luxury tax on certain commodities.—(1) The Luxury tax in respect of a commodity included in the Schedule shall be at the rate specified against it calculated on the basis of the value of the commodity, under whatever head it is charged, received or receivable at the point of supply and be payable by the person who uses or consumes the same.

(2)The luxury tax shall be collected by the stockist and paid, within
such period and in such manner as may be prescribed, into the Government
Treasury.

(3)Where a luxury tax is collected by a stockist at the point of first
supply in the State, whether by way of sale or otherwise, no luxury tax under
this Act shall be collected at any successive point of supply.

(4)The provisions of this Act shall, in so far as they relate to the
assessment, levy and collection of tax in respect of a commodity included
in the Schedule, apply with the substitution of the word "stockist", for the
word  "proprietor"   wherever  it occurs.

4B. Registration of hotels.—(1) Every proprietor of a hotel having not less than five rooms to be rented for accommodation for residence shall get his hotel registered and  the registration renewed annually.
          (2) An application for registration or renewal shall be made to such authority in such manner and within such period as may be prescribed and shall be accompanied by a fee as specified below, namely:—

                    (a) Star hotels                                                                  Five thousand rupees
                    (b) Hotels other than star hotels—

(7)    in section 5A, for sub-section (1), the following sub-section shall be  substituted,   namely:—
              "(1)   Notwithstanding  anything  contained  in section 4  or section 5, any proprietor of a hotel other than—

(i)    per air conditioned room                     : one thousand and five
hundred rupees
(ii)   per non-air conditioned                       :  one thousand rupees
room
(b)   within the local area of a Municipal Council or Township by whatever name called
(i)     per air conditioned room                     :  one thousand rupees
(ii)    per non-air conditioned room          :  seven hundred and fifty
rupees
(c)   within  the local  area  of a Panchayat or other areas
(i)    per air conditioned room                      : seven hundred and fifty
rupees
(ii)   per non-air conditioned room          : five hundred rupees.";
(8)  after section 12, the following section shall be inserted, namely:—
"12A. Power to stop vehicles etc.—(1) No person shall transport within the State a commodity included in the Schedule exceeding such quantity or value as may be prescribed, by any vehicle, vessel or other conveyance or by animal load unless he is in possession ofa bill of sale or a delivery note containing such particulars as may be prescribed.

(2) The driver or any other person in charge of any vehicle, vessel or other conveyance, or the person in charge of an animal which is believed to carry a commodity included in the Schedule shall, when so required by an assessing authority or any officer authorised by the Government in this behalf, stop the vehicle, vessel, other conveyance or the animal, as long as may be reasonably necessary, and allow the assessing authority or such other officer to examine the contents ofthe vehicle, vessel, other conveyance or the animal load and to inspect all records relating to the commodity included in the Schedule carried therein and shall also give his name and address as also the name and address of the owner of the vehicle, vessel or other conveyance or animal and the person to whom the commodity belongs and also the person to whom it is conveyed and such other information in his possession for the enforcement of the provisions of this Act or the rules   made thereunder.”;
        (9)    in section 13,—
            (a)     in    sub-section    (1),   in   clause  (b),    for   the   word 'hotel', the words "hotel or business"        shall be substituted;

(b) in sub-section (2), in clause (b), for the words "hotel or hotels", the words "hotel or business"    shall be substituted;

(c) in   sub-section   (3), in clause (b)—

                (i)  for the words "hotel or hotels",  the words "hotel or business" shall be substituted;
                (ii) in the proviso, for the words "hotel-cum-residence", the words "hotel/shop-cum-residence" shall be substituted;

"THE  SCHEDULE

Serial number                        Description of commodity                         Rate of luxury tax per cent

(1)                                                  (2)                                                             (3)

 1.                                                   Cigarette                                                     5".