Passing of Assessment Order Without Granting Minimum Time Period of 30 Days to File Reply—Validity of—Narendra Kumar

SUBSCRIBE FOR FULL CONTENT


The Tax Publishers GST--Demand of Tax Passing of Assessment Order Without Granting Minimum Time Period of 30 Days to File Reply--Validity of Narendra Kumar The present article aims at making an analytical study of the issue as to whether ex-parte assessment order passed under section 74(8) of the CGST Act without affording a minimum time period of 30 days to file reply, is sustainable in law. The issue under consideration is being discussed in the light of relevant statutory provisions and a recent Patna High Court decision in the case of Motiprabha Infratech Pvt. Ltd. v. UOI 2023 (71) GSTL 275 (Patna-HC). 1. Provisions relating to determination of tax under section 73 and 74 Section 73 of the CGST Act, deals with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts. As per sub-section (1) of section 73, where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder. As per sub-section (2) of section 73, the notice under sub-section (1) of section 73 is required to be issued at least three months prior to the time limit specified in sub-section (10) for issuance of order. As per sub-section (8) of section 73. where any person chargeable with tax pays the said tax along with interest payable under section 50 within thirty days of 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. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

GST--Demand of Tax

Passing of Assessment Order Without Granting Minimum Time Period of 30 Days to File Reply--Validity of

Narendra Kumar

The present article aims at making an analytical study of the issue as to whether ex-parte assessment order passed under section 74(8) of the CGST Act without affording a minimum time period of 30 days to file reply, is sustainable in law. The issue under consideration is being discussed in the light of relevant statutory provisions and a recent Patna High Court decision in the case of Motiprabha Infratech Pvt. Ltd. v. UOI 2023 (71) GSTL 275 (Patna-HC).

1. Provisions relating to determination of tax under section 73 and 74

Section 73 of the CGST Act, deals with determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts.

As per sub-section (1) of section 73, where it appears to the proper officer that any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.

As per sub-section (2) of section 73, the notice under sub-section (1) of section 73 is required to be issued at least three months prior to the time limit specified in sub-section (10) for issuance of order.

As per sub-section (8) of section 73. where any person chargeable with tax pays the said tax along with interest payable under section 50 within thirty days of 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.