Tax Recoveries, Appeals and Revision under GST


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Tax Collected and not Paid to the Government

  • Every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not

  • In case the amount which needs to be paid as mentioned above is not paid, the proper officer based upon the principle of natural justice, show cause as to why the impugned amount should not be paid and why a penalty of a similar amount not be imposed. Based upon the representations, the officer shall determine the amount to be paid
  • In addition to the above, the person shall also be liable to pay the interest (As shall be notified) on the delayed payment
  • An order under this section shall be issued within 1 year from the date of issue of Show cause notice
  • The reasons for the decision shall be recorded in writing

Tax Wrongfully Collected and Paid to the Government

  • A registered person who has paid the Central tax and State tax or, as the case may be, the central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter-State supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.

  • A registered person who has paid integrated tax on a transaction considered by him to be an inter-State supply, but which is subsequently held to be an intra-State supply, shall not be required to pay any interest on the amount of central tax and State tax or, as the case may be, the central tax and the Union territory tax payable.

Initiation of Recovery Proceedings

  • Any amount payable by a taxable person in pursuance of an order passed under this Act shall be paid by such person within a period of three months from the date of service of such order failing which recovery proceedings shall be initiated

  • Provided that where the proper officer considers it expedient in the interest of revenue, he may, for reasons to be recorded in writing, require the said taxable person to make such payment within such period less than a period of three months as may be specified by him.

Recovery of Tax

  • The proper officer may recover taxes due by way of deduction from the amount payable from the department to concerned person

  • Recovery can be done by way of detaining and selling goods belonging to such person under control of the proper officer or any other specified officer
  • The proper officer may by way of a written notice require any other person to hold the payment on account of that person and pay to the government on behalf of the said person. That other person can be any person and can also be banking company, post office or an Insurer and such other person shall be bound by such notice. The other person, if fails to comply by such notice, whould himself be considered as defaulter as per provision of this act
  • The proper officer has rights to amend and or revoke such notices.
  • The proper officer may, in accordance with the rules to be made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person
  • The proper office may also sign a certificate for collection by the District Collector and may also file an application with the Magistrate for such collection

    Payment of Tax and other amounts in Instalments

    • On an application filed by a taxable person, the Commissioner may, for reasons to be recorded in writing, extend the time for payment or allow payment of any amount due under this Act, other than the amount due as per the liability self-assessed in any return, by such person in monthly instalments not exceeding twenty four, subject to payment of interest and subject to such conditions and limitations as may be prescribed.

    • Provided that where there is default in payment of any one instalment on its due date, the whole outstanding balance payable on such date shall become due and payable forthwith and shall, without any further notice being served on the person, be liable for recovery.

Transfer of Property to be Void in Certain Cases

  • Where a person, after any amount has become due from him, creates a charge on or parts with the property belonging to him or in his possession by way of sale, mortgage, exchange, or any other mode of transfer whatsoever of any of his properties in favour of any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in respect of any tax or any other sum payable by the said person

  • Provided that, such charge or transfer shall not be void if it is made for adequate consideration, in good faith and without notice of the pendency of such proceedings under this Act or without notice of such tax or another sum payable by the said person, or with the previous permission of the proper officer.

    Tax to be first charge on Property and Provisional Attachment

    Section 82 – Tax to be first charge on Property

    • Notwithstanding anything to the contrary contained in any law for the time being in force, save as otherwise provided in the Insolvency and Bankruptcy Code, 2016, any amount payable by a taxable person or any other person on account of tax, interest or penalty which he is liable to pay to the Government shall be a first charge on the property of such taxable person or such person.

      Section 83 – Provisional Attachment

      • Where during the pendency of any proceedings,the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed. However, such provisional attachment shall cease to have effect after the expiry of period of one year from the date of the order made

Appeal to Appellate Authorities

  • Any person aggrieved by any decision or order passed under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by an adjudicating authority may appeal to such Appellate Authority as may be prescribed within three months from the date on which the said decision or order is communicated to such person.

  • The Commissioner may, on his own motion, or upon request from the Commissioner of State Tax or the Commissioner of Union territory tax, call for and examine the record of any proceedings in which an adjudicating authority has passed any decision or order under this Act or the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act, for the purpose of satisfying himself as to the legality or propriety of the said decision or order and may, by order, direct any officer subordinate to him to apply to the Appellate Authority within six months from the date of communication of the said decision or order for the determination of such points arising out of the said decision or order as may be specified by the Commissioner in his order.
  • Where, in pursuance of an order as stated above, the authorised officer makes an application to the Appellate Authority, such application shall be dealt with by the Appellate Authority as if it were an appeal made against the decision or order of the adjudicating authority and such authorised officer were an appellant and the provisions of this Act relating to appeals shall apply to such application
  • The appellate authority, if satisfied that the appellant was prevented by a sufficient cause, extend the timeline of 3 months/6 months by a further period of 1 month
  • Normally, the appellate authority will have to pass an order within 1 year from the date on which it is filed
  • All orders by appellate authority will be in writing and the appellate proceeding shall be done as per the prescribed procedure.

Non – Appealable Orders or decisions

Notwithstanding anything to the contrary in any provisions of this Act, no appeal shall lie against any decision taken or order passed by an officer of central tax if such decision was taken or order passed relates to any one or more of the following matters, namely:—

  (a) an order of the Commissioner or other authority empowered to   direct transfer of proceedings from one officer to another officer; or

  (b) an order pertaining to the seizure or retention of books of   account, register and other documents; or

  (c) an order sanctioning prosecution under this Act; or

  (d) an order passed under section 80.

Powers of Revisional Authorities

Subject to the provisions of section 121 and any rules made thereunder, the Revisional Authority may, on his own motion, or upon information received by him or on request from the Commissioner of State tax, or the Commissioner of Union territory tax, call for and examine the record of any proceedings, and if he considers that any decision or order passed under this Act or under the State Goods and Services Tax Act or the Union Territory Goods and Services Tax Act by any officer subordinate to him is erroneous in so far as it is prejudicial to the interest of revenue and is illegal or improper or has not taken into account certain material facts, whether available at the time of issuance of the said order or not or in consequence of an observation by the Comptroller and Auditor General of India, he may, if necessary, stay the operation of such decision or order for such period as he deems fit and after giving the person concerned an opportunity of being heard and after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling the said decision or order.

However, the revisional office shall not exercise any power in the following cases:

  • When the order is a subject matter of appeal with Appellate Authorities

  • The time period of filing appeal has not expired or also if the case is time-barred under this section (More than 3 years have expired after passing of the order)

  • A revision has already been done earlier under this section
  • If it is an order passed by an appellate authority.

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