THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
DEMANDS AND RECOVERY
Section 76: Tax collected but not paid to Government.- (Relevant Rule 142 & 142A)
(1) Notwithstanding anything to the contrary contained in any order
or direction of any Appellate Authority or Appellate Tribunal or court or in
any other provisions of this Act or the rules made thereunder or any other law
for the time being in force, 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.
(2) Where any amount is required to be paid to the Government under sub-section
(1), and which has not been so paid, the proper officer may serve on the person
liable to pay such amount a notice requiring him to show cause as to why the
said amount as specified in the notice, should not be paid by him to the
Government and why a penalty equivalent to the amount specified in the notice
should not be imposed on him under the provisions of this Act.
(3) The proper officer shall, after considering the representation, if any,
made by the person on whom the notice is served under sub-section (2),
determine the amount due from such person and thereupon such person shall pay
the amount so determined.
(4) The person referred to in sub-section (1) shall in addition to paying the
amount referred to in sub-section (1) or sub-section (3) also be liable to pay
interest thereon at the rate specified under section 50 from the date such
amount was collected by him to the date such amount is paid by him to the
Government.
(5)
An opportunity of hearing shall be granted where a request is received in
writing from the person to whom the notice was issued to show cause.
(6) The proper officer shall issue an order within one year from the date of
issue of the notice.
(7) Where the issuance of order is stayed by an order of the court or Appellate
Tribunal, the period of such stay shall be excluded in computing the period of
one year.
(8) The proper officer, in his order, shall set out the relevant facts and the
basis of his decision.
(9) The amount paid to the Government under sub-section (1) or sub-section (3)
shall be adjusted against the tax payable, if any, by the person in relation to
the supplies referred to in sub-section (1).
(10) Where any surplus is left after the adjustment under sub-section (9), the
amount of such surplus shall either be credited to the Fund or refunded to the
person who has borne the incidence of such amount.
(11) The person who has borne the incidence of the amount,
may apply for the refund of the same in accordance with the provisions of
section 54.