The Sector 35-based hotel as it was earlier penalised Rs 25,000 for charging GST on two bananasIn yet another setback for JW Marriott, the Chandigarh excise and taxation department on Wednesday imposed a penalty of Rs 5 lakh on the five-star hotel after certain excise violations were found by the team during an inspection 10 days ago.
The UT excise and taxation department stated that the hotel has been penalised for possessing seven bottles of liquor without hologram. It was also stated that sales and stock register and inspection notebook was not produced at the time of inspection. “However, it was produced later during the proceedings before the Collector (X) and it was found that registers were not authenticated,” the findings of the hearing stated.
It was also specified, “Two brands of IFL were in the possession of the licensee which are not approved by the department for the current policy year, but the brands purchased by the hotel in the year 2012 and 2017 when the same was registered by the department. However, the hotel is directed either to get the approval of the above said labels/brands as per clause 10 of the Excise policy, 2019-20 or destroy the liquor as per rules under the Punjab Excise Act, 1914.”
There has been a series of troubles for the Sector 35-based hotel as it was earlier penalised Rs 25,000 for charging GST on two bananas given to actor Rahul Bose. The department said that it was an illegal collection of tax as fresh fruits are tax-free items and exempted under GST law.
After Bose’s tweet, the hotel was penalised Rs 25,000 for violating Section 11 (1) of Central Goods and Service Tax Act (illegal collection of tax on an exempted item) and Section 8 of UTGST Act. According to the details, they were fined Rs 12,500 each under CGST and the UTGST for charging Rs 67.50 in taxes from the actor for the two bananas
The penalty was imposed under Section 125 of the CGST Act and Section 21 of the UTGST Act.
On July 22, Bose had posted a video on his Twitter handle sharing a copy of the receipt that the hotel sent him for two bananas that he ordered after a workout session. “You have to see this to believe it. Who said fruit wasn’t harmful to your existence? Ask the wonderful folks at JW Marriott,” the actor, who was in the city for a film shoot, had said in a tweet.
According to the excise department, not having holograms as in this recent violation, is considered to be a serious offence of the excise laws — being direct evasion of excise duties and tax. Holograms were introduced in Chandigarh in the year 2017 to check smuggling of liquor. It establishes the genuineness as it tracks alcohol from the manufacturer to its point of sale. It shows a bottle’s date of manufacture and when it travelled to a retailer along with details if excise duty is paid on it or not.
Clause 46 of the UT excise policy states, “Holograms/Intaglio printed security labels with holograms on packing/bottles of country liquor, Indian made foreign liquor and imported foreign liquor will be mandatory fixed by the licensee at his own expense.”
FIR ordered
The UT excise and taxation department has also taken action against M/s Garib Nawaz Hotels Limited (Hotel Turquoise) at Industrial Area Phase II in which directions have been passed to lodge an FIR against the hotel as per the Excise Act after they were found serving liquor to customers which was meant for sale in Haryana only. A penalty of Rs 50,000 at Punjab Store in
Sector 9, Chandigarh, was also imposed after it was found that promotion of liquor was being done through signboard of “Bacardi” and sale and stock register and inspection notebook was not produced on demand at the time of inspection.
