Demand and Recovery By CA Shubham Khaitan, B.COM

Transcript:Demand and Recovery By CA Shubham Khaitan, B.COM:
Demand and Recovery By CA Shubham Khaitan, B.COM (Honours), FCA, LLB, ACS, CFA(USA), DISA (ICAI) Partner - Tax & Regulatory, S. Khaitan & Associates Email ID: shubham@cakhaitan.com, Phone No. 03340687062, +919831912725 Website: www.cakhaitan.com Tax not paid or short paid or erroneously refunded – Section 73 & 74 Notice shall be served by the proper officer if : Tax not paid Tax short paid Erroneously refunded Input tax credit wrongly availed or utilized other than fraud or any wilful misstatement or suppression of facts to evade tax to showcause why tax along with interest u/s 50 and penalty as per the provisions of the Act or rules is not payable fraud or any wilful misstatement or suppression of facts to evade tax 23-04-2024 Shubham Khaitan [B.Com(Hons),LLB,FCA,ACS,CFA(US),DISA] 2 Shubham@cakhaitan.com +91 98319 12725 to showcause why tax along with interest u/s 50 and penalty equivalent to the tax Section 73(1) Section 74(1) If not proven, notice deemed to be issued u/s 73(1) Time limit for issuance of Notice and Order : Tax not paid or short paid or erroneously refunded – Section 73 & 74 75(1). To exclude the period for which the service of notice or issuance of order is stayed by a court or Appellate Tribunal is stayed 75(10). Adjudication deemed to be concluded if order not issued within the above time period 75(11). If any authority has given decision prejudicial to the interest of revenue and appeal is preferred to AT/HC/SC, period between the two decisions to be excluded Tax not paid or short paid or erroneously refunded – Section 73 & 74 23-04-2024 Shubham Khaitan [B.Com(Hons),LLB,FCA,ACS,CFA(US),DISA] 4 Shubham@cakhaitan.com +91 98319 12725 Section 73(3) / 74(3) - 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), on the person chargeable with tax. Held that when the first SCN was issued all the relevant facts were in the knowledge of the authorities. Later on, while issuing the second and third show cause notices the same/similar facts could not be taken as suppression of facts on the part of the taxpayer as these facts were already in the knowledge of the authorities. [Nizam Sugar Factory v. Collector 2006 (197) E.L.T. 465