Section Number |
Section Title |
73 |
Determination of tax not paid, short paid, or erroneously refunded or Input tax credit wrongly availed or utilized for any reason other than fraud or any wilful-misstatement or suppression of facts |
74 |
Determination of tax not paid, short paid, or erroneously refunded or Input tax credit wrongly availed or utilized for any reason other than fraud or any wilful-misstatement or suppression of facts |
75 |
General provisions relating to determination of tax |
76 |
Tax collected but not paid to Government |
77 |
Tax wrongfully collected and paid to Central or State Government |
78 |
Initiation of recovery proceedings |
79 |
Recovery of tax |
80 |
Payment of tax and other amount in instalments |
81 |
Transfer of property to be void in certain cases |
82 |
Tax to be first charge on property |
83 |
Provisional attachment to protect revenue in certain cases |
84 |
Continuation and validation of certain recovery proceedings |
Sub-section |
Sub-section Title |
Remarks |
1 |
Determination of tax not paid, short paid, or erroneously refunded or input tax credit wrongly availed or utilized on account of fraud or any wilful-misstatement or suppression of facts to evade tax |
Where the Proper officer has reason to believe that the case involves fraud or any wilful-misstatement or suppression of facts to evade tax, avail erroneous refund or wrongly avail or utilise ITC then proceeding shall be initiated under section 74. The notice issued under this sub-section shall also contain mention of tax, interest u/s 50 and penalty leviable. A summary of the notice shall be issued in Form DRC-01. |
2 |
The time limit for issue of notice under sub-section (1) |
Notice u/s sub-section (1) at least six months before the time limit specified in sub-section (10) for issuance of an order. So notice or statement must be issued within 4 years and 6 months from the due date of the annual return or the date of erroneous refund. |
3 |
Statement containing details of tax not paid or short paid or erroneously refunded or Input tax credit wrongly availed or utilized may be served instead of notice sub-section (1) |
Where a notice has been issued for any period under sub-section (1), the Proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or Input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1). The statement should be on the same ground as the notice sub-section(1). |
4 |
Service of statement deemed to be service of notice under section 73 |
The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such Tax periods other than those covered under sub-section. |
5 |
Person chargeable with tax may pay the tax before notice is served and inform the Proper officer in writing |
A taxpayer may suo moto pay tax, applicable interest and penalty equivalent to 15% of such tax before the issue of notice under sub-section (1) in DRC-01 and such has to be intimated to the Proper officer in writing. |
6 |
Proper officer shall not serve notice if tax is paid before notice is served and Proper officer is informed |
Where tax, interest and penalty have been paid under sub-section (5) no notice or statement shall be issued under sub-section (1) & (3). |
7 |
Notice shall be issued in case the amount paid falls short of the amount actually payable |
Where the Proper officer is of the opinion that the amount paid under sub-section (5) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in subsection (1) in respect of such amount which falls short. |
8 |
If person chargeable with tax pays the tax along with interest and penalty within 30 days of notice, proceedings shall be deemed to be concluded |
Where the taxpayer pays the said tax along with interest payable under section 50 and penalty equivalent to 25 % of such tax within thirty days of the issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded. |
9 |
Proper officer shall determine the amount of tax, interest, and penalty and issue an order after considering the representation made by the person chargeable with tax |
The Proper officer shall determine the amount of tax, interest and a penalty due from such person and issue an order. A summary of such an order shall be issued in Form DRC-07. |
10 |
Order to be issued within 5 years from the due date for furnishing of annual return or from the date of erroneous refund |
The Proper officer shall issue the order under sub-section (9) within five years from the due date for furnishing of the annual return for the financial year or within three years from the date of the erroneous refund. |
11 |
If tax, interest, and penalty are paid within 30 days of communication of order, proceedings shall be deemed to be concluded |
Person served with an order issued under sub-section (9) pays the tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such tax within thirty days of communication of the order, all proceedings in respect of the said notice shall be deemed to be concluded. |
For the purposes of this Act, the expression “suppression” shall mean non-declaration of facts or information which a Taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer.