The West Bengal Luxury Tax Act, 1994

GOVERNMENT OF WEST BENGAL 
LAW DEPARTMENT 
Legislative 
West Bengal Act XV of 1994 
THE WEST BENGAL LUXURY TAX ACT, 1994. 
[Passed by the West Bengal Legislature.] 
[Assent of the Governor was first published in the Calcutta 
Gazette, Extraordinary, of the 4th April, 1994.] 
[4th April, 1994.] 
An Act to provide for the imposition of tax on luxuries and for matters 
connected therewith or incidental thereto. 
WHEREAS it is expedient to provide for the imposition of tax on luxuries 
and for matters connected therewith or incidental thereto; 
It is hereby enacted in the Forty-fifth Year of the Republic of India, 
by the Legislature of West Bengal, as follows:- 
1. (I) This Act may be called the West Bengal Luxury Tax Act, 
1994. 
(2) It extends to the whole of West Bengal. 
(3) It shall come into force on such date as the State Government may 
by notification appoint. 
Short title, 
extent and 
commence-
ment. 
Ben. Act VI 
of 1941. 
2. In this Act, unless there is anything repugnant in the subject or Definitions. 
context,— 
(a) "Bureau" means the Bureau of Investigation referred to in 
section 19A of the Bengal Finance (Sales Tax) Act, 1941; 
(b) "licensed stockist" means a stockist to whom a licence has 
been granted under sub-section (4) of section 6; 
(c) "luxuries" means the commodities, as specified in the 
Schedule, for enjoyment over and above the necessaries of 
life; 
(d) "luxury tax" means the tax payable under section 4; 
(e) "notification" means a notification published in the Official Gazette; 
(f) "prescribed" means prescribed by rules made under this Act; 
(g) "Schedule" means the Schedule to this Act; 
135 
The West Bengal Luxury Tax Act, 1994. 
[West Ben. Act 
(Section 2.) 
(h) "stock of luxuries" means the quantity of luxuries that a 
stockist receives in, or procures for, his stock, or records or 
accounts for in his books of account, in West Bengal during 
any prescribed period for stocking, vending, supplying or 
distributing to a wholesaler, dealer, retailer, distributor or any 
other person, but shall not include any quantity of such 
luxuries held by him in stock on the first day of such 
prescribed period; 
(i) "stockist" means a person who has, in customary course of 
business, in his possession of, or control over, a stock of 
luxuries, whether manufactured, made or processed by him 
in West Bengal, or brought by him into West Bengal, either 
on his own account or on account of others, from any place 
outside West Bengal, for stocking, vending, supplying or 
distributing such luxuries in West Bengal; 
(j) "Taxation Tribunal" means the West Bengal Taxation 
Tribunal constituted under section 3 of the West Bengal 
Taxation Tribunal Act, 1987; 
(k) "Tribunal" means the West Bengal Commercial Taxes 
Tribunal constituted under section 3B of the Finance (Sales 
Tax) Act, 1941; 
(1) "turnover of stock of luxuries", in relation to a stockist in 
respect of any prescribed period or part thereof, means the 
aggregate of the values of stock of luxuries; 
(m) "value of stock of luxuries" means,— 
(i) in respect of any stockist, being a.manufacturer of any 
of the luxuries, the value of such luxuries calculated at 
the ex-factory price at the time of receipt or entry thereof 
in his stock, and 
(ii) in respect of any stockist, being an importer of any of 
the luxuries, the value of such luxuries calculated at 
the price thereof as per consignor's bill, invoice or 
consignment note or other document of like nature, 
and shall include— 
(A) excise duty and central sales tax, if any, paid or payable 
on such luxuries by the manufacturer or importer thereof, 
as the case may be, and 
West Ben. 
Act VIII of 
1987. 
136 
The West Bengal Luxury Tax Act, 1994. 
XV of 1994.] 
45 of 1860. 
(Sections 3-5.) 
(B) transport charges and insurance charges, if any, for 
carrying such luxuries to any premises, godown, 
warehouse or any otherplace fordelivery to a wholesaler, 
dealer, retailer, distributor or any other person; 
(n) "year" means the year commencing on the first day of April. 
3. (1) The State Government shall prescribe an authority (here-
inafter referred to as the prescribed authority), and shall appoint such 
other persons, being the officers of the State Government, to assist the 
prescribed authority as the State Government may think fit, for carrying 
out the purposes of this Act, and may specify the area or areas over which 
such persons shall exercise jurisdiction. 
(2) Persons appointed under sub-section (1) shall exercise such 
powers as may be conferred, and perform such duties as may be required, 
by or under this Act. 
(3) The prescribed authority and the persons appointed under sub-
section (1) shall be deemed to be public servants within the meaning of 
section 21 of the Indian Penal Code. 
(4) Subject to such restrictions and conditions as may be prescribed, 
the prescribed authority may, by order in writing, delegate any of its 
powers and duties under this Act, except those under sub-section (6) of 
section 19, to any person appointed under sub-section (1) to assist it. 
(5) No suit, prosecution or other legal proceedings shall lie against 
the prescribed authority or the persons appointed under sub-section (1) 
to assist it, for anything which is in good faith done or intended to be done 
under this Act or the rules made thereunder. 
Taxing 
authorities. 
4. Every stockist shall be liable to pay a luxury tax on his turnover 
of stock of luxuries at such rate, not exceeding twenty per centum, as the 
State Government may by notification fix in this behalf, and different rates 
may be fixed for different class or classes of luxuries. 
5. The luxury tax payable by a stockist under this Act shall be levied 
on that part of his turnover of stock of luxuries during any prescribed 
period which remains after deducting therefrom his such turnover during 
that period representing— 
(a) the value of such stock of luxuries as shown to the satisfaction 
of the prescribed authority to have been despatched to places 
outside West Bengal; 
Incidence of 
luxury tax. 
Levy of 
luxury taxi 
137 
The West Bengal Luxury Tax Act, 1994. 
(Section 6.) 
[West Ben. Act 
(b) the value of stock of luxuries of such class or classes or 
description as may be prescribed. 
Licence. 6. (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 West Bengal 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 prescribed authority may, after giving him areasonable 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 or the Reserve 
Bank of India 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 19 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 
prescribed authority. 	 • 
(4) If the prescribed authority is satisfied that the application for 
licence is in order, it 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 sub-
section (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 prescribed authority may, if it 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. 
138 
] XV of 1994. 
The West Bengal Luxury Tax Act, 1994. 
(Sections 7, 8.) 
(7) The prescribed authority 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 prescribed 
authority in the manner prescribed. 
(9) A licence granted to a stockist under sub-section (4) may be 
cancelled by the prescribed authority after due notice to such stockist if 
it is satisfied that he 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. 
7. (1) Every licensed stockist shall furnish returns of turnover of 
stock of luxuries to such authority, in such manner, for such period or 
periods, and by such date or dates, as may be prescribed. 
(2) Before any, licensed stockist furnishes the returns under sub-
section (1), he shall, in the prescribed manner, pay into a Government 
Treasury or the Reserve Bank of India the full amount of luxury tax due 
from him under this Act according to such returns, and shall furnish along 
with each such return a receipt from such Treasury or Bank showing the 
payment of such amount. 
8. (1) If the amount of luxury tax payable under section 5 in respect Interest. 
of any period is not paid by the stockist referred to in section 7 by the date 
prescribed under that section, such stockist shall pay a simple interest at the 
rate of three per centum for each English calendar month of default from 
the first day of such month next following the prescribed date to the last 
day of the month prior to the month in which such tax is fully paid or up 
to the month prior to the month of assessment under section 9 in respect 
of such period, whichever is earlier, upon so much of the amount of luxury 
tax payable by him according to return where return is furnished, or 
according to such assessment where return is not furnished, as remains 
unpaid at the end of each such month of default. 
(2) Where a stockist fails to make payment of any luxury tax payable 
after assessment made under sub-section (1), or sub-section (2), by the 
date specified in the notice issued under sub-section (8), of section 9 
for payment thereof, he shall pay a simple interest at the rate of three 
Returns and 
payment of 
luxury tax. 
139 
The West Bengal Luxury Tax Act, 1994. 
[West Ben. Act 
Assessment 
of luxury 
tax, 
imposition 
of penalty 
and 
determina-
tion of 
interest. 
(Section 9.) 
per centum for each English calendar month of default from the first day 
of such month next following the date specified in such notice to the last 
day of the month prior to the month of full payment of such luxury tax, or 
up to the month prior to the month of commencement of proceedings under 
sub-section (10) of section 9, whichever is earlier, upon so much of the 
amount of luxury tax due from him according to such notice as remains 
unpaid at the end of each such month of default. 
(3) Where as a result of an order under section 15, the amount of 
luxury tax on which interest Was payable under this section is modified, the 
interest shall be payable on the modified amount. 
(4) A stockist liable to pay interest under sub-section (1) or sub-
section (2), shall pay into a Government Treasury or the Reserve Bank of 
India the amount of such interest in such manner and by such date or dates 
as may be prescribed. 
(5) Notwithstanding anything contained in sub-section (1) or sub-
section (2), no interest shall be payable in such cases or under such 
circumstances, and subject to such conditions, if any, as may be prescribed. 
(6) The State Government shall, in the prescribed manner, pay a 
simple interest at the rate of three per centum for each English calendar 
month of delay in making refund of luxury tax paid in excess which arises 
out of an order passed under section 15, from the first day of such month 
next following the expiry of three months from the date of passing of such 
order to the last day of the month prior to the month in which the refund 
is made upon the amount of tax refundable to him according to such order. 
(7) In calculating the interest payable under this section, the amount 
of luxury tax in respect of Which such interest is to be calculated shall be 
rounded off to the nearest multiple of one hundred rupees and, for this 
purpose, where such amount contains a part of one hundred rupees, if such 
part is fifty rupees or more, it shall be increased to one hundred rupees 
and, if such part is less than fifty rupees, it shall be ignored. 
9. (1) If no return is furnished by a licensed stockist in respect of any 
period by the prescribed date, or if the prescribed authority is not satisfied 
that the return furnished is correct and complete, the prescribed authority 
shall proceed in such manner as may be prescribed to assess to the best of 
its judgement the amount of luxury tax due from the licensed stockist in 
respect of a year comprising all such periods and, in making such 
assessment, shall give the licensed stockist a reasonable opportunity of 
being heard; and in the case of failure by a licensed stockist to submit in 
140 
The West Bengal Luxury Tax Act, 1994. 
XV of 1994.] 
(Section 9.) 
respect of any period areturn accompanied by a receipt from a Government 
Treasury or the Reserve Bank of India, as required under section 7 by the 
prescribed date, the prescribed authority May, if it is satisfied that the 
default was made without reasonable cause for such period, direct that the 
licensed stockist shall pay, by way of penalty, in addition to the amount of 
luxury tax so assessed in respect of such period, a sum of exceeding that 
amount: 
Provided that no penalty under this sub-section shall be directed to be 
paid in respect of the same fact for which a prosecution under clause (c) of 
sub-section (1) of section 19 has been instituted and no prosecution would 
lie vice versa. 
(2) If, upon information, the prescribed authority is satisfied that any 
stockist who has been liable to pay luxury tax under section 4, has failed 
to obtain licence, or has not been granted licence, the prescribed authority 
shall proceed in such manner as may be prescribed to assess to the best of 
its judgement the amount of luxury tax due from such stockist in respect 
of any period or part thereof during which such stockist has either failed 
to obtain licence, or has not been granted licence, after giving him a 
reasonable opportunity of being heard. 
(3) No assessment under sub-section (1) shall be made after the expiry 
of two years, and no assessment under sub-section (2) shall be made after 
the expiry of six years, from the end of the year in respect of which or part 
of which the assessment is made. 
(4) In computing the period limited by sub-section (3) for making 
any assessment under sub-section (1) or sub-section (2), the period 
during which the prescribed authority is restrained from commencing or 
continuing any proceeding for such assessment by an order of any 
Court or the Taxation Tribunal shall be excluded. 
(5) Where the prescribed authority is satisfied that a stockist is liable 
to pay interest under section 8, it shall, in such manner as may be 
prescribed, determined the amount of interest payable by such stockist and 
if, on such determination, any additional amount is found to be payable by 
the stockist or any excess amount is found to be refundable to the stockist, 
the prescribed authority shall issue a notice, in the prescribed manner, to 
such stockist directing him to pay such additional amount or informing 
him of the amount of excess payment, as the case may be. 
(6) No determination under sub-section (5) of interest payable under 
sub-section (1) of section 8 shall be made after the expiry of one year from 
the date of assessment of luxury tax under sub-section (1) in respect of 
the period for which such determination is made. 
141 
The West Bengal Luxury Tax Act, 1994. 
[West Ben. Act 
(Sections 10-12.) 
Refunds. 
Accounts. 
Production 
and 
inspection of 
accounts and 
search of 
premises. 
(7) Where there is an apparent mistake in the determination of interest 
under sub-section (5), the prescribed authority may, on its own motion, or 
upon application made by a stockist within six months from the date of 
determination, rectify the amount of interest payable by such stockist and 
issue a fresh notice in the prescribed manner. 
(8) The amount of luxury tax due from a stockist upon assessment 
made under sub-section (1) or sub-section (2), as the case may be, shall, 
together with any penalty directed to be paid under sub-section (1), be paid 
by the stockist into a Government Treasury or the Reserve Bank of India 
by such date as may be specified in a notice issued by the prescribed 
authority for this purpose, and the date to be so specified shall not 
ordinarily be less than thirty days from the date of service of such notice. 
(9) The amount of interest that may become due from a stockist upon 
determination under sub-section (5) shall be paid by the stockist into a 
Government Treasury or the Reserve Bank of India by such date as may 
be specified in the notice issued under that sub-section by the prescribed 
authority, and the date to be so specified shall not ordinarily be less than 
thirty days from the date of service of such notice. 
(10) Any amount of luxury tax, penalty or interest which remains 
unpaid after the date specified in the notice under sub-section (8) or sub-
section (9) shall be recoverable as an arrear of land revenue, as if it were 
payable to the Collector. 
10. The prescribed authority shall, in the prescribed manner, refund 
to a stockist any amount of luxury tax, penalty or interest paid by such 
stockist in excess of the amount due from him under this Act, either 
by cash payment or by deduction from or adjustment in, the amount of 
luxury tax, penalty or interest due in respect of any other period. 
11. Every stockist shall maintain and keep true and up to date account 
of the quantity and value of luxuries held in stock by him and vended, 
supplied or distributed by him during the prescribed period and also keep 
documents in support of other charges, duties and tax, paid or payable by 
him, and if the prescribed authority considers that such account is not 
sufficiently clear or intelligible to enable him to make a proper check of the 
return referred to in section 7, he may require such stockist to keep such 
accounts as he may direct. 
12. (1) The prescribed authority may, subject to such conditions as 
may be prescribed, require any person— 
(a) to produce any accounts, registers or documents before it 
and explain them; 
142 
The West Bengal Luxury Tax Act, 1994. 
XV of 1994.1 
(Section 13.) 
(b) to furnish any information in relation to manufacture, import, 
use or sale and stock of luxuries and relating to any other 
matter, as may be deemed necessary for the purposes of this 
Act. 
(2) All accounts, registers and documents and luxuries kept in any 
place of business of a stockist shall, at all reasonable times, be open to 
inspection by the prescribed authority. 
(3) If the prescribed authority, or any person appointed under sub-
section (1) of section 3 to assist it, has reasons to suspect that any stockist 
is attempting to evade payment of luxury tax, it or he may enter into and 
search any place of business and, for reasons to be recorded in writing, 
seize such accounts, registers or documents of the stockist as may be 
necessary, for determination of liability to pay luxury tax by such stockist 
or for assessment of such tax or for determination of interest or for any 
other purposes as may be required by or under this Act. 
(4) The prescribed authority, or any person appointed under sub-
section (1) of section 3 to assist it, shall grant a receipt for any accounts, 
registers or documents seized by it or him and shall retain any of such 
accounts, registers or documents only for a period as may be necessary for 
examination thereof or for prosecution or for any other purpose of this Act: 
Provided that no accounts, registers or documents seized by the 
prescribed authority shall be retained for any period exceeding one year 
from the date of seizure unless such authority records, in writing, reasons 
therefor, but where seizure is made by any person appointed under sub-
section (1) of section 3 to assist the prescribed authority, such person shall 
not retain any of the accounts, registers or documents seized by him under 
sub-section (3) for any period exceeding one year from the date of seizure 
unless he records, in writing, the reasons for further retention and obtains 
sanction of the prescribed authority in writing in this behalf. 
13. (1) If the prescribed authority, or any person appointed under 
sub-section (1) of section 3 to assist it, has reasons to believe that a person 
is holding a stock of any of the luxuries manufactured by him in West 
Bengal or brought by him into West Bengal from any place outside West 
Bengal in any premises and that he is attempting to evade payment of 
luxury tax, such authority, or the person appointed under sub-section (1) 
of section 3 to assist it, may, subject to such restrictions and conditions as 
may be prescribed, enter into such premises and conduct search therein and 
seize such luxuries to secure payment of luxury tax that may become 
payable on assessment under section 9. 
Search and 
seizure of 
luxuries. 
143 
Bureau. 
The West Bengal Luxury Tax Act, 1994. 
[West Ben. Act 
(Section 14.) 
(2) While making seizure, the prescribed authority, or the person who 
seizes luxuries, shall grant a receipt thereof in the prescribed manner: 
Provided that when the prescribed authority, or the person appointed 
under sub-section (1) of section 3 to assist it, thinks it necessary not to seize 
such luxuries for the time being, it or he shall seal in the prescribed manner 
any room, godown or warehouse or any container found within such 
pemises. 
(3) Until the amount of luxury tax that may be assessed under sub-
section (2) of section 9 is paid together with penalty, if any, that may be 
directed to be paid under sub-section (2) of section 6, the luxuries so seized 
shall be retained: 
Provided that where a stockist furnishes a security or bank guarantee 
to secure payment of the luxury tax pending determination of such 
tax under sub-section (2) of section 9, the luxuries so seized shall be 
released. 
(4) If a stockist fails to pay the amount of luxury tax as may 
become payable under section 5 or due from him under section 9 and 
penalty payable under sub-section (2) of section 6, if any, within such 
period as may be prescribed, the luxuries so seized shall, subject to such 
conditions and restrictions and in such manner as may be prescribed, be 
sold in open auction or otherwise by the prescribed authority, and the sale 
proceeds thereof shall be remitted to a Government Treasury or the 
Reserve Bank of India after deducting therefrom the incidental expenses, 
if any. 
(5) The amount of luxury tax due from a stockist after assessment 
under section 9 together with penalty, if any, that may be directed to be 
paid under sub-section (2) of section 6, shall be recovered out of the 
sale proceeds of the luxuries sold under sub-section (4), and the balance 
amount of the sale proceeds, if any, shall be refunded to such stockist in 
the prescribed manner on application made by him within the prescribed 
period. 
14. (1) Notwithstanding anything contained elsewhere in this Act, 
the Bureau may, on information or on its own motion, or on direction given 
by the State Government or the prescribed authority, carry out investigation 
or make enquiry into any case of alleged or suspected evasion of luxury tax 
under this Act and into any malpractices connected therewith. 
144 
The West Bengal Luxury Tax Act, 1994. 
XV of 1994.] 
(Section 15.) 
(2) The Bureau may, for the purpose of carrying out any investigation 
or making any enquiry referred to in sub-section (1), exercise all the 
powers referred to in section 12 and section 13. 
(3) After a case of alleged or suspected evasion of luxury tax has been 
investigated or enquired into, the Bureau shall send a report thereon to the 
prescribed authority of such action as may be deemed necessary for the 
levy, collection, assessment and recovery of luxury tax. 
(4) On receipt of a report from the Bureau, the prescribed authority 
may require the Bureau to transfer to it any accounts, registers or docu-
ments seized by the Bureau and such accounts, registers or documents 
shall be retained for further period, if necessary, subject to the provisions 
of sub-section (4) of section 12. 
(5) The prescribed authority shall assign such functions of the Bureau 
to such officers of the Bureau as it may deem fit, and any person appointed 
under sub-section (1) of section 3 to assist the prescribed authority shall, 
when appointed in the Bureau, be competent to exercise all the powers 
which are exercisable by such person under this Act and the rules made 
thereunder. 
(6) The officers appointed in the Bureau shall have jurisdiction over 
the whole of West Bengal. 
15. (1) Any stockist may, in the prescribed manner, appeal to such 
authority as may be prescribed (hereinafter referred to as the appellate 
authority) against any order of assessment of luxury tax, determination of 
interest, or imposition of penalty, under section 9 within such time as may 
be prescribed: 
Provided that no appeal shall be entertained by the appellate authority 
unless it is satisfied that such amount of luxury tax, interest or penalty, as 
the case may be, as the appellant may admit to be due from him has been 
paid. 
(2) Subject to such rules of procedure as may be prescribed and for 
reasons to be recorded in writing, the appellate authority, in disposing of 
any appeal under sub-section (1), may by order,— 
(a) confirm, set aside or annul the assessment, or 
(b) reduce or enhance the amount of luxury tax, or 
(c) modify any order pertaining to interest or penalty. 
Appeal, 
revision and 
review. 
145 
The West Bengal Luxury Tax Act, 1994. 
[West Ben. Act 
(Section 16.) 
Statement of 
case to the 
Taxation 
Tribunal. 
(3) Subject to such rules as may be prescribed and for reasons to be 
recorded in writing,— 
(a) the prescribed authority may, on its own motion, revise any 
assessment made or order passed by a person appointed under 
sub-section (1) of section 3 to assist it; 
(b) the prescribed authority may, upon application, revise any 
order, other than an order referred to in clause (c) and an order 
against which an appeal lies under sub-section (1), passed by 
a person appointed under sub-section (1) of section 3 to 
assist it; 
(c) the Tribunal may, upon application, revise a final appeallate 
or revisional order from an order of assessment of luxury tax, 
determination of interest, or imposition of penalty, under 
section 9. 
(4) Subject to such rules as may be prescribed and for reasons to be 
recorded in writing,— 
(a) any order of assessment or other order passed under this Act 
or the rules made thereunder by the prescribed authority or 
any person appointed under sub-section (1) of section 3 to 
assist it, may be reviewed by it or the person passing such 
order, upon application or of its or his own motion, and 
(b) the Tribunal may review any order passed by it, either on its 
own motion or on application. 
(5) Before any order is passed under this section, any person who is 
likely to be affected thereby adversely, shall be given a reasonable 
opportunity of being heard. 
16. (1) Within sixty days from the date of passing by the Tribunal of 
any order under clause (e) of sub-section (3), or clause (b) of sub-section 
(4), of section 15 affecting any liability of any stockist to pay luxury tax, 
penalty or interest under this Act, such stockist, by application in writing 
accompanied by a fee of one hundred rupees, or the prescribed authority 
by application in writing, may require the Tribunal to refer to the Taxation 
Tribunal any question of law arising out of such order. 
(2) If, for reasons to be recorded in writing, the Tribunal refuses to 
make such reference, the applicant may, within thirty days of such refusal, 
either— 
(a) withdraw his application (and if he does so, the fee paid shall 
be refunded), or 
(b) apply to the Taxation Tribunal against such refusal. 
146 
The West Bengal Luxury Tax Act, 1994. 
XV of 1994.] 
(Sections 17, 18.) 
(3) If, upon the receipt of an application under clause (b) of sub-
section (2), the Taxation Tribunal is not satisfied of the correctness of the 
decision of the Tribunal, it may require the Tribunal to state the case and 
refer the same to it, and on receipt of such requisition from the Taxation 
Tribunal, the Tribunal shall state the case and refer the same accordingly. 
(4) If the Taxation Tribunal is not satisfied that the statements in a case 
referred to it under this section are sufficient to enable it to determine the 
question raised thereby, it may refer the case back to the Tribunal to make 
such additions thereto, or alternations therein, as the Taxation Tribunal 
may direct in that behalf. 
(5) The Taxation Tribunal, upon the hearing of any such case, shall 
decide the question of law raised thereby, and shall deliver its judgement 
thereon containing the grounds on which such decision is founded, and 
shall send to the Tribunal a copy of such judgement under the seal of the 
Taxation Tribunal and the signature of the Registrar, and the Tribunal shall 
dispose of the case accordingly. 
(6) Where a reference is made to the Taxation Tribunal under this 
section, the cost (including the disposal of the fee) shall be in the discretion 
of the Taxation Tribunal. 
(7) The payment of the amount, if any, of luxury tax, penalty and 
interest due in accordance with the order of the Tribunal in respect of which 
an application has been made under sub-section (1) shall not be stayed 
pending the disposal of such application or any reference made in 
consequence thereof, but if such amount is reduced as a result of such 
reference, the excess luxury tax, penalty or interest paid shall be refunded 
in accordance with the provisions of section 10. 
17. Save as otherwise provided in section 16, no assessment made and 
no order passed under this Act or the rules made thereunder by the 
prescribed authority or any person appointed under sub-section (1) of 
section 3 to assist it, and no order passed under this Act or the rules made 
thereunder by the Tribunal, shall be called in question in any civil court, 
and save as otherwise provided in section 15, no appeal or application for 
revision or review shall lie against any such assessment or order. 
18. The Tribunal, the prescribed authority or any person appointed 
under sub-section (1) of section 3 to assist the prescribed authority shall, 
for the purposes of this Act, have the same powers as are vested in a court 
5 of 1908. 
	
	 under the Code of Civil Procedure, 1908, when trying a suit, in respect of 
the following matters, namely:— 
(a) enforcing the attendance of any person and examining him on 
oath or affirmation; 
Bar to 
certain 
proceedings. 
Power to 
take 
evidence. 
147 
The West Bengal Luxury Tax Act, 1994. 
[West Ben. Act 
(Section 19.) 
(b) compelling the production of documents; and 
(e) issuing commissions for the examination of witnesses; 
and any proceeding under this Act before the Tribunal, the prescribed 
authority or any person appointed under sub-section (1) of section 3 to 
assist the prescribed authority shall be deemed to be a judicial proceeding 
withiti the meaning of section 193 and section 228, and for the purposes 
of section 196, of the Indian Penal Code. 45 of 1860. 
Offences, 
penalties and 
prosecution. 
19. (1) Whoever— 
(a) fails to furnish the security demanded under sub-section (6) 
of section 6, 
(b) fails to pay the full amount of luxury tax payable for any 
period in accordance with the provisions of section 7, 
(c) fails without reasonable cause to furnish return under 
section 7, 
(d) submits false return, 	 • 
(e) fails to make payment of interest payable under sub-section 
(1) of section 8, 
(f) fails to comply with the provisions of section 11, or 
(g) refuses to comply with any requirements under sub-section 
(1) of section 12, 
shall be punishable with simple imprisonment which may extend to six 
months or with fine or with both and when the offence is a continuing one, 
with a daily fine not exceeding one hundred rupees during the period of 
continuance of the offence. 
(2) Whoever holds a stock of luxuries in contravention of the 
provisions of sub-section (1) of section 6 shall be punishable with simple 
imprisonment which may extend to one year or with minimum fine of 
five thousand rupees or with both and when the offence is a continuing 
one, with a daily fine not exceeding one hundred rupees during the 
period of continuance of the offence. 
(3) Whoever obstructs the prescribed authority or any person appointed 
under sub-section (1) of section 3 to assist it or the Bureau making 
inspection, search or seizure under section 12 or section 13, shall be 
punishable with imprisonment of either description for a term which may 
extend to three months or with fine which may extend to five hundred 
rupees or with both. 
(4) Whoever abets any of the offences referred to in sub-section (2) or 
sub-section (3) shall, if the act abetted is committed in consequence of the 
abetment, be punished with the punishment provided for the offence. 
(5) In any prosecution for an offence under this Act which requires 
a culpable mental state on the part of the accused, the court shall presume 
the existence of such culpable mental state until the contrary is proved. 
148 
The West Bengal Luxury Tax Act, 1994. 
XV of 19941 
(Sections 20, 21.) 
Explanation.—For the purposes of this sub-section, "culpable mental 
state" shall include intention, motive, knowledge of a fact and belief in, or 
reason to believe, a fact. 
(6) No court shall take cognizance of any offence under sub-section 
(1), sub-section (2), sub-section (3) or sub-section (4) or the rules made 
under this Act except with the previous sanction of the prescribed authority 
and no court inferior to the court of a Metropolitan Magistrate or a Judicial 
Magistrate of the first class shall try such offence. 
(7) The offence punishable under sub-section (1), sub-section (2) or 
sub-section (4) shall be cognizable and bailable and the offence punishable 
under sub-section (3) shall be cognizable and non-bailable. 
20. (1) Where an offence under this Act has been committed by a 
stockist, every person who, at the time the offence was committed, was in 
charge of the business of the stockist and was responsible to the stockist 
for the conduct of the business of the stockist as well the stockist, shall be 
deemed to be guilty of the offence and shall be proceeded against and 
punished accordingly: 
Provided that nothing contained in this sub-section shall render any 
such person liable to any punishment provided under 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 the offence. 
(2) Notwithstanding anything contained in sub-section (1), where an 
offence under this Act has been committed by a stockist, being a company 1 of 1956. 
	
	 within the meaning of the Companies Act, 1956, and it is proved that the 
offence has been committed with the consent or connivance of, or is 
attributable to any neglect on the part of, any director, manager, secretary 
or other officer, as the case may be, such director, manager, secretary or 
other officer shall be deemed to be guilty of that offence and shall be liable 
to be proceeded against and punished accordingly. 
21. (1) Subject to such conditions as may be prescribed, any person 
alleged to have committed an offence referred to in clause (f) or clause (g) 
of sub-section (1), or sub-section (2), of section 19, may, either before or 
after the commencement of any proceedings in respect of such offence, at 
his option, compound such offence by paying to the prescribed authority 
such sum, not exceeding twenty thousand rupees, as may be determined 
by the prescribed anuthority. 
(2) On full payment of such sum as may be determined by the 
prescribed authority under sub-section (1),— 
(a) no proceedings shall be commenced against the person as 
aforesaid, or 
(b) if any proceedings have already been commenced against 
such person, such proceedings shall not be proceeded with, 
Liability to 
prosecution. 
Compound-
ing of 
offences. 
149 
The West Bengal Luxury Tax Act, 1994 
[West Ben. Act XV of 1994.] 
(Sections 22, 23 and Schedule.) 
Power to 
make rules. 
Power to 
remove 
difficulties. 
if such person undertakes to comply with the requirements of the provisions 
contained in sub-section (1) of section 6, section 11 or sub-section (1) of 
section 12, as the case may be, within such period as the prescribed 
authority may direct. 
22. (1) The State Government may, by notification, 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:— 
(a) the procedure for, and matters (including provisions for 
payment of fees) incidental to, the disposal of appeal, 
revision and review under section 15; 
(b) any other matter which may be, or is required to be, pres-
cribed under this Act. 
(3) In making any rule, the State Government may direct that a breach 
thereof shall be punishable with fine not exceeding five hundred rupees, 
and when the offence is a continuing one, with a daily fine not exceeding 
twenty-five rupees during the continuance of the offence. 
23. If any difficulty arises in giving effect to any of the provisions of 
this Act, the State Government may, by order, do anything which appears 
to it to be necessary or expedient for the purposes of removing the 
difficulty: 
Provided that no such order shall be made after the expiry of a period 
of two years from the date of commencement of this Act. 
SCHEDULE 
[See clause (c) and clause (g) of section 2.] 
1. Cheroots. 
2. Cigarettes. 
3. Cigar. 
4. Pan masala perfumed or treated otherwise, of any form or 
description, that is to say, combination of powder or broken form or 
otherwise of two or more of the following substances, or combination of 
two or more of the following substances with any other substance, whether 
mixed with tobacco or not, and sold under various trade names or 
descriptions such as Pan Bahar, Pan Pasand, Pan Parag, Pan Tarang, 
Talab, Prem Ranjan or any other name or description:— 
(a) betel nuts, locally known as supari; 
(b) cardamom, locally known as elach; 
(c) cloves, locally known as labanga; 
(d) aniseed, locally known as mauri; 
(e) cassia, locally known as darchini; 
(f) menthol. 
5. Smoking mixtures for pipes and cigarettes. 
150 

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