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2021 (3) TMI 592 - HC - Indian LawsLevy of penalty under Section 17A of the Luxuries Act - Tribunal deleted the penalty as no assessment was done - treatment charges as charges towards amenities and services under Section 2(fb) of the Luxuries Act - HELD THAT:- This Court notices that the Tribunal has found fault with the assessing authority and the appellate authority for notionally determining and assuming that 30% of gross charges would represent the luxury provided by respondent under Section 2(fb) of the Luxuries Act and that there is no material even to come to the conclusion as to the rate at which the accommodation is provided by the respondent. In other words, the reasoning of its Tribunal rightly points out the mistakes of authority under the Act in levy penalty. Petition is rejected on the ground that in the case on hand, no assessment determining the obligation/liability under the Luxuries Act is made, penalty proceedings are taken up, and by notionally calculating the amount the penalty is imposed. The Tribunal, has given liberty to department to first proceed to initiate assessment proceedings in accordance with law, subject to the period of limitation, if sufficient materials are available for doing so and consequently penalty proceedings could be contemplated. Petition dismissed.
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