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Luxury tax penalty of third party

(Querist) 06 March 2015 This query is : Resolved 
Dear Sir
I am the owner of hotel in Kochi,i lease the hotel to a third part on monthly rent basis. at that time the intelligence squad enter the hotel and recovered account books and bills. my tenant have no luxury tax registration. the intelligent officer charged a huge penalty of Rs. 2.5 lac and issue the order. unfortunately the tenant cancelled the lease agreement 7 months before. now the intelligence office inform me to pay the penalty otherwise they will do the revenue recovery. pls advise me what i can do for escaping this issue. regards praveen
Devajyoti Barman (Expert) 06 March 2015
You are not liable for the payment, the lessee is. Ask the officials to chase the lessee.
Rajendra K Goyal (Expert) 06 March 2015
If any notice of recovery is issued in your name, go for appeal and stay of recovery.
ajay sethi (Expert) 06 March 2015
contact a local lawyer and contest the recovery proceedings
Kappil Cchandna (Expert) 07 March 2015
Dear,

Have they issues any SCN to you.... And If there is any then please share because the one who is running the business and all will be the one be made liable .... Hotel in whose name registered ?

Kapil Chandna Adv 9899011450

Praveentristar@gmail.com (Querist) 07 March 2015
First of all thanks very much,

i will explain

order is came only in the name of my tenant,
but address is in my hotel name,there is no SCN, only intelligence penalty order, i have pure agreement with my tenant, unfortunately they give me 15 days to report or pay, otherwise they will paste the notice in my hotel


Praveentristar@gmail.com (Querist) 09 March 2015
Thank you all of Sir

they r not issue SCN, only penalty imposed order in the name of lessee but address is in my hotel name, now i am running the hotel, hotel is in my name, i took the luxury tax registration also and filing returns is up to date.

regards
praveen
T. Kalaiselvan, Advocate (Expert) 10 March 2015
The lease agreement seems to have been terminated but you still allowed the lessee to run the business unofficially till the date the taxmen or sleuths raided the hotel premises. Now the actual person who escaped will not be legally liable for the consequences, further since the licence is in force and is in your name with no lease agreement in operation, you may have to answer to the problem. You may engage an advocate and process the reply o notice to the authority disowning the responsibility fight it out legally.
Praveentristar@gmail.com (Querist) 11 March 2015
No Sir,
the lease agreement period was 16-09-2013 to 15-08-2014, after that only I started to run the hotel 16-08-2014 onwards, the tax officer issued penalty for the month Jan, feb, march & april 2014,the lessee received the notice at that time & gave their explanation to tax officer, it is clearly mentioned in the penalty order. I went yesterday to meet tax officer for explain and give a written explanation, he refuse it to accept, he said order already issued so I sent through registered acknowledgement post


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