Chapter XV DEMANDS AND RECOVERY

(1) Where it appears to the pr911er officer that any tax has not· been paid or short paid or erroneously refunded, or where input tax credit h? ?h'wrongly availed or utilised for any reason, othertli,ait]he Jeas<>n of fraud or apy wilful-111isstatement or s'1:ppression of facts to evade tax, h.e shall serve notice <>n ?e ?on. charg?le with tax whichhas not been so paid or whl,ch hasbeen so short paid or to whom the refund has erroneously . been made, or who has wrongly availes} or utilis,ed input tax credit, requiring him to show cau?e wl,iy he should not pay'the.amount specified in the notice along with interest payable thereonunder section 50 and a penalty leviable underthe provisions ofthis Act or the rules made thereunder. (2) The proper officer shall issue the notice under. sub- section (1) at least three months prior to the time limit specified in sub-section (10) for issuance oforder. (3) Where a notice hasbeenissued for any period under sub-section (1 ), the proper officer may serve a statement, containing the detailsof tax not paid or. short paid or erroneously refunded or input tax Q'e(tit wrongly ivailed or utilised forsuch periods other thanthose covered under sub-section (1), on the person chargeable with tax. ( 4) The service -of such statement shallbe deemed to be · service of notice on such ·person under?on (l), subject to the condition that the grounds relied upon for such tax periods otherthan· th? coveredundetsub- section (1) are the same as are mentioned in the earlier notice. (5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3) pay the amount of tax along with interest payable thereonunder section50 on the basis ofhis own ascertainment of such tax or the tax as ascertained by the proper officer andinform the proper officer in writing of such payment. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other thanfraud or any wilful misstatement or suppression of facts. 88 (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section ( 1) or, as the case may be, the statement under sub-section (3), in respect ofthe tax so paid or any penalty payable, under the . provtsions of μtis J\ct or the rules made there?der. (7) Where the J?f? officer is of the, 9pmion that the amount paid 'Wder sub-section (5) falls short of the amount actually .payable. he shall proceed to issue the notice .as provided for in sub-section (1) in respect of such· amount ·.which falls short of the amount actually payable. · . (8) Where. any person chargeable with tax. under sub- section (l'f or sub-section (3) pays the said tu 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. (9) The proper officer shall, after considering the · representation. if any. made by person ?geable with tax. determine the amount of tax. in? and a penalty equivalent toten per cent of tax or ten thousand rupees. whichever is higher, due from such person and .issue an order. · ( 1 O) · Toe proper officer shall isSue the-0rder under sub-section (9),Mthin three years from the due date for filing of annuat .ttturn for the financial year to· which the tax not paid9r short ppd or input. tax credit wrongly availed or utilised relates to. or within three years from the date of erroneous refund. (11) Notwithstanding anything .contamed in sub-section (6) or.sub-section (8), penalty under sub;-;section (9) shall be payable where an.y amount of self-assessed tax or any amount,..collected ?}? has not been paid within a period of thirty days from the due date of payment of such tax. 89

(1) Where. it appears to the prpper officer ?taIJJ.tax has llQt ? paid or short paid or erroneously. refunded Of! ?here input tax crajit has been wrpl)gly availed or utilised by reuon ?f fraud, or any willful-mis.statement or suppression of facts to ?e tax, he shag sei:y,e notice on the person chargeable,with tax which.? 11ot 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, ?utring bim to show cause ?hy he should notpay the a11.1buntspecified in the notice ?ong with interest payablith?tto,? under section 50 and a penalty equivalent to the tat specified in the notice. ·, . · (2) 'Ihe proper officer. shall issue the notice under sub- section (1) at least .six months prior to the time limit specified in sub-section. (10) for issuance of otder. (3) Where a. notice has been issuedfor any period under sub-section (1 ), the proper officer may serve a statement, containing the cletails of taxnot paid or short paid or erroneously refunded otinput tax aedit wrcmgly)vailed or utilised for such periods other than th<>,e.rfJ()Vered under sub-section (0, on the person ch? with tax. (4) The service of statement under sub-section (3) shall be deemed to be service of notice under sul>-section (1) of section 73, subject to .the condition that thegrounds relied upon in the said statement, excepfthe ground . <i ? or any willful-misstatement or ?n of .· tacts to evade ?for periods .other than thQ$e .. ? under sub-section (1) are the .same. as'are mentioned in the earlier notice: ' . . ' .. < (5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with ?fftSI payable under section 50 and a. penalty equivalent to fifteen pa cent of suclftax on the basisof his own ascertainment of such tax or the tax as ascertained by the proper.officer and inform the proper offi.cel' ? writing of sus)l payment '( { 6) J,\le proper office,;. on r?pt of su? informatj.on, shall i}lot serve any nc>Jice un? .sub-?on (1), iJJ:. respect of the tax so ?d or any penalty payable.? the provisions of this Act or the rules made ther?\W?r. Dettrmination of tu not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-nilsstatement or suppression of facts. 90 (7) Where the proper officer is of the opu,uon thatthe amount paid under sub-section (5) falls short of the arliount actually payable. he· shall proceed.to issue the 11&.ce aS provided for in· sub-section (1) bl·;respect of siich iltnount which1alJsshort· of the ;IDlO\lllt actually payable. ,. ·• d, .. ?:· -r ., (8) 'Wh??t anypmon chargeable with. tax wider sub- ??P (J)pays the said.? along with in? payable ·un? ?on SO.and a penalty equivalent to twenty five · ?i '?nt of such tax wi? thirty ? of is.me ofthe notice,''all proceedings in respect of tlle said qotice shall be deemedto be concluded. . . ?i!'r (9)\ The proper officer shall. .. after considering the ' · representation, if any. made,? rthe. per&Ol1 chargeable with tax, determine the amount of· tax, interest and pepalty due fromsuch person and issue an order. (1 O)r 1he'Jm>per officer shall issoethe order under sub-section ·· · ;(9) within· a period of five years from the due .date for · :filmg <,f anaual return forthe financial year to which the tit.·aot paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous mund. Cpl ·\VJiF aD)'.person 5dved widi an order,'tssued under h,. ,,,t: .???on (9) pays !}le tax along with iJlterest payable . ·· · tlier.?.911del" section 50 and a penalty equivalent to fifty per;cent of S\!ch tax within thirty days of e<>mmtmication of the .or.4er., 'all proceedings·uj respect of the said notice · shallbe deemed to be conduded, . Explanation 1.-: For the purpqses of section73 andthis ?on, - (i) . the ?ression .'"all proceedings,. in rqpect of the said flptice'" shall not include proceedings under section 132; (ii) where the notice under the same proceedings is issued to the main person liable to.pay tax·•4nd some other persons, and such proceedings against the main person ha.-e been conduded!ihder section 73 or sedlon 74, t1te Rroceedings agamsfall t1ie perions liable ufpay penalty :'Jmder sections122, 125,129 and130 are deemed to be :e '.d>hcluded. · i · 91 Explanation 2.- For the . purposes of this Act, the expression "suppression" shall mean non-declaration of facts. or information which a taxab?person is ttqwred,todeclare in the return, statement, report ot my· other ?fufuished undtr this Actor the rules niade .thereunder, or failure to fwn!sh_? information on being asked for, in writing, by th.e proper officer.

(1) ·Wn?t}if ?ce bf notice or ?'(or<ierJS stayed by an ordefof a court or Appellate TribUQ..t, .the period of such stay shall be excluded in computing the period ?pecified in sub-sections (2) and (10) ?f ?on 73 or sub-se¢ons (2) and (IO) of seqion 74, ? :tlje ¢ase may be. . . ; .. ·· • .. ;-,, ,.,, General provisions relating to determination oftax. (2) W]lere any.? Authority or Appellate Tribunal or. court am? tltet, the notice issued. under sub- . section (1) of? 74il not SQStainaWe for the reason tbaluhe charge(oHraud or any wilful mis IDkmeator supp.-ession of facts to evade tax has not been established against the person to whom· the notice was iuued, · the p? officer shall.?.•.tJie tq.? by :$II.Ch person, cleeming as if the. J1Qtice were•iuued undersuJ>.. section (1) of section

(1) Notwitqstanding anything J? the contrary contained in any .or?r or direction pf any Appellate Am:hority or Appell .. re Tubunalor p>9{t.Qf in any other provisi<?D$ of this Act or the rules made ther? or. anyotlie, ij.wfor the time being in force, every person who has collected from any other person ? ?owtt"'as'representing the tax under this Act. and has not paid the said amount to the Goveminent. ·shall· fo,;thwith pay the. saidamourit 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 why the said amount as specified in the notice, should not be paid by himrto theGovernmentand why a penalty et}Uivalent to the ahiount·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, ma.e •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 determiried. (4) The person referred to in sub-section (l) shall in addition to paying· the amount referred to ul' sub-section ( l) or sub-section (3) also beliable to pay· interest thereon at the rate specined un?r 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 he? shallbe gran? .where a request is received in writing from the person to whom the notice was issued to show cause. ( 6) The proper pfficer shall ?ue an order within one year fromthe 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 th.e period of o,:ie ye,r. (8) The proper officer, in.his order, shall set out the relevant facts and the basis·ofhis decision.' /-i<> Tax collected.but not paid to Government. · 94 (9) The amount paid t() the Government under sub-sett.ton (lJ or sub-section'(3) shallbe"?? against'tlte? pa?ble, if any, by the, persotfin'relation to the supplies referred to in sub-secfion (1). · . . _, ?- ( 10). Where any surplus is left afltrtlie ?ustm?t Wlcler sub- section (9), the amount of suqi surplus shall either be credited to μte Fund or refunde? to the person who bas home the iacidence of such amount ( 11) The person who has borne the incidence of the amount may apply for the refund of.the same in accordance? .. the provisions of section

(l) A registered per50l1 who bas paid the central. tu and State tax on a tranSaction considered by ·binl 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. · (2) A registered person wbo ba,,.paid integrated tax on a transaction .considered by,·:hiJn to be an inter-State supply. but which. is ..ubsequently held to be an intra-.,. State supply, shall.not be required to pay any interest on the amount of Staie tu.payable. . Tax wrongfully ? and paid to ec. Government or SI Government.

Any amount payable_bj a.taxable person in pursuance of an Initiation of recomJ order passed under this Act shallbe paid by suchpefSOll ? proceedings . . a period of three months from the d.ie 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.J,>ayment within such .period less 'than a period of three months as'inay be specified by him. 79. (1) Where any amount. payable by a ?n to the · Recovery of tax.. Government under any of the provisions 'of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes, namely:- (a) the proper officer may deduct or may requife,any< other specified officer to deduct the amount so payabl?;from any :.rooa1ey owing to such perwn: which iμay be und? th? control of the proper officer or such other specified officer;

(b) , the proper officer. may recover or may require any other ?ed · officer :to rec:over the amount so payable by)?'·and ·selling any goods belonging to ?th '? which ? under the control ofthe proper officer or such other specified officer; · · · · " " · t..·s:· -'? •CJ (c) (i) the proper offic? may, by a? in writing. require any ot.ber ?l'Sf>n ?m?om money· is due or may beco?eaue to ?ch person or who hol?or,Dlay ?ubsequ?ily,hold money for or on.?unt'of.S9Ch,?- to pay to the Government s: eith.er .foJ1bwith upon the money;?mu:g,due 0( being held, or , within tl;le tip:le sPFcified in tp.e notice not being before the money becqmes due or is held, 'so mucbQf the money as is sufficient to pay the amount ?ue·froni·sucll person·or the whole ofthem<>geywl)en ifisequal to or less than that amount; (ii) every pepon to :whopi the DQtice is issued under sub-claμse, 0) ,, shall be bound to comp)¥ with sucb, nqti? and in particular, wher4 any such. ffl>tite is issued to a post o?. banking oompany or an insurer, it shall not be necessary to produce any pass book. deposit receipt. policy or any other documentfor the, purpose of any entry, 'endorsement or the·like being made before payment is made,nutwlthstanding any rule, practice or requirement to the contrary; (iii) in case the person to whom a··· notice under. sub-clause· (l) ··has been issued, fails to make the payment in pursuance thereof to the Goeernment, be'·· shall be deemed to be a defaulter 1n respect ofthe amount specified in the notice arid . all the consequences of this· Act or the rulei made thereunder shall f<>lld'w; (iv) the officer issuing a notice ? sub-clause (i) may,.?t any Um,1t,"'1llt:nd.,.fN··I'.? such. notice, or .. ?n,d the . time fQI'· roaking any payment in pqrswuice ofthe notice; .

{v) any person making any payment in col'.l)plia.nce. with no? issued un4er sub- cl?use. (j.) shaU be de«;? to have made the paym?nt VJ1<\?J'R.?,,4uthority of the person in default. 8RA. .. $uc,h;?ent betng credited ffi, ,? Gpv??l·•• .shall be 'deemed to constitute a good and sufficient disql.arge of the liability of such person to the person in default to the extent of the amount s?fied r?' the receipt; {vi) a11y:person .. 4isc!iarging /any liability to the person in default after service on him of the notic?. issued under . sub-clause. (i) shall be .persona.Py. liable· to 'the Government to the · ?ent · of the liability d!?harged or to the ?eht of the. J!?bility of the person !ii drfault for tax, ·interest and penalty, whichever is less; (vu) wJ;i,er.e, ? .. ??. on whom a notice is served und.?I sub:,cla??(i) pWve$ to the: satisfaction of the officer _'j?ulflg the. n<>pce that the money demanded. or. ?y part thereof was not due tol:he·person inddault orthat he did not hold any money for or on account of the person in default, at the tune the notice was served on>him, nor is the money demanded or any part,:,thereof, likely ta become due to the said person or be held for o'r on account. of such · p.eqJOn, · nothing. contained in this section shall be deemed to require the person on whom·the·.•hotice has been served ·to pay tQ the Government any sudt money or part thereof; ( d) the proper offi¢fr Jllay, in accordance with the rules to be made in this behalf, di? any movable or immovable property belongillg to or under the control of sucb .. p?pon, .. apd . cletain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distrc:? or keeping of the. pr?perty, remains unpaid· for a period of thirty ?y$. •ext after any such distress, may cause the sald property to be sold andwith the·proceeds of such ?e. may sati.Sfy the amount payable atia the costs mduding cost of sale .. remaihi.ng unpatd,,and shall ?ndet the m.rplus amount, if any; to,su.chfei'$on;

2ofl974 (e) the proper -0fficer may prepare a certificate signed by him?· the amoUI1t· due from such personind send itto the Collectorofthe district in ·•which such person owns any property or resides or carries on his business or,to-any officer authorised by the Government and the said Collector or the said officer, on receipt ofsuch certificate. shall p:roceetf to· recover from such person the amount specified thereunder as if it ·were an· arrear of land revenue; (0 Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the proper officer may file an application · to the appropriate Magistrate and such Magistrate shall proceed to recover from such person the amount specified thereunder as if it were a fine imposed by him. (2) Where the terms of any bond or other Instrument executed under this Act or any rules or regulations made thereunder provide that ?y amount dueunder such instrument may be recovered in the. manner laid down in sub-section (1). the Fount may, without prejudice to any other mode of recovery, be recovered in accordance withthe provisions of that sub-section, · (3) Where any amount of tax, interest or penalty is payable by a person to the Government under any of the provisions of this Act or the rules made thereunder and · which remains unpaid, the proper officer of central tax, during the course of recovery of said tax arrears, may . recover the amount from the said person as if it were an arrear of central tax and credit the amount so recovered to the account ofthe Government. (4) Where the amount recovered under sub-section. (3). is less than the amount due to the Central Government and State Government, the amount to be credited to the account ofthe respective Governments shall be in proportion to the amount due to eaca such Government 80; On an application filed by a taxable person, the Commissioner .Payment of tax and other may, for reasons to be recorded in writing, exten? the time amount iD installments.- for payment or allow payment of any amount due under this Act, other thanthe amount due as per the liability self-assessed in any return; by such person in monthly installments not exceeding ?enty four. subject' to payment 'of interest under 'section 50, subject to· such conditions and limitations as may be prescribed:

Provided that where there is def1"1t ,in pa}'ll)fflt of any one installment on its due date, the whple puts? balance payable on suchdate shall . hffiome due . and, payabl? forthwith. and· shall, without any .further notice being served on the .person, be liable for recovery. 81. Where. a perso11, after any amounthas beco1I1e,due from him, creates a? on or parts "With the property belonging to him or in his possession by,way of sal?, mortgage, exchange. or any other modeof transfer whatsoeverof any of his properties in favourof 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 tu or any other sum payable by thesaid person: Provided that, such charge or transfer shall' lipt be void if it is madefor adequate consideration, in good fai? and without notice : of the pendency of such proceedings under this Act or without notice of suclitax orother sum payable by thesaid person, -9r with the previouspermission. of the proper officer. I Transferof property to? void in certain cases. I I il of2016 82. Notwithstanding anything to the COlltrary contained in.?Y 1',w Tu to be first charge on for the time being in. force, save u, .o?erwise provided in. the property. Insolvency and Bankruptcy Code, 2016, any amount gayable by a.taxable person or·any other person on· account of tax. in?or.penaltywhich he is liable !OP,Y to the Government shall be a first giarge on the property of such taxable person or such?on. · ·· 83. (I) Where during the.pendencyofany proceedings under section62 or section or secijon.,?.or section or section or section .74, the CQ?ioner is of the opinion that forthe purpose of protecting the interest of the Government revenue, itis necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to thetaxable person in'such manner as·maybe prescribed. (2) · Every such provisional attachmentshall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (I). Pnwisional attachment-, protect revenue in certaill cases. 84. W11e.re a.'1y notice ofdemand in respect of any tax,, penalty. C'.ontinuation and interest or any other amount payable under this Act, (ht:reafter validation of certain · h' · r. ed " · d ") d recovery proceedin= m t is section re,etr to as Govemment ues • is serve i,- uponany taxable person 'or any other person and any· appeal or revision ?plication is filed. or •. any. other proceedings is inJti?ed in re.speptof such Government dues, then-

(a) wheresuch Government dues are enhanced in such appeal, .. revis!<.),Jl or other proceedings. the Commissioner shall serve upon the taxable person or any other person another notice ofdemand in respect of the amount by which such Government dues are enhanced and any:.3covery proceedings In ?lation to ·• such Goveriunent dues as are covered by the notice of demand ?ed upon him. before the disposal ofsuch appeal. revision or other proceedings m.ay. without tht, senice of any fresh notice of demand. be·continued· from the stage at which such proceedings· stood,blunediately before suqh disposal; (b) ,.where such Government dues are reduced in such appeal, revision·or in other procee<finss- (i) it shall not.be riecessaryfor the Commissioner to serve up.,n the 'taxable person a fresh notice of demand; (ii) the Q>mm.issioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;. (iii) any recovery proceedings initiated on the basis of the demand served up<>n him prior to the· disposal of such appeal, revision or other proceedings may becontinued in relation to theamount so reducedfrom the stage at which such proceedings stood immediately before such disposal.

CHAPTER XVI LIABILITY TO PAY IN CE&TAIN CASES 85. . ( l) Where a taxable p;san, liable to pay tax under thisAct, transfers his bQSiness in whole or in part, by· sale, gift, lease, leave and license, hire .or in any other manner whatsoever, the taxable person and the ?n to whom the business is so transferred shall. jointly and severally, beliablewhollyortotheextentofsuchtransfer,topaythe tax, interest or any penalty due from the taxable person up to the time of such transfer, whether such tax, interest or penalty has been determined before such transfer, but has remained unpaid or is determined thereafter. (2) Where the transferee of a business referred to in sub- section ( l) carries on such business either in his own name or. in some other name, he shall be liable to pay tax on the supply of goods or services or both effected by him with etfect &om the date of such transfer and shall. ifhe is a registaed persou under this ?,apply Within the presaibed time for amendmalt ofms certificate of registration. Liability in case of transfer of busineSS. 86. Where an agem, supplies or receives any taxable goods on Llability of agent and behalf of his principal. such agent and his principal shall, principal. joimly and severally, be liable to pay the .tax payable on· such goods under, this

(1) Where any amount. payable by a ?n to the · Recovery of tax.. Government under any of the provisions 'of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes, namely:- (a) the proper officer may deduct or may requife,any< other specified officer to deduct the amount so payabl?;from any :.rooa1ey owing to such perwn: which iμay be und? th? control of the proper officer or such other specified officer; 95 (b) , the proper officer. may recover or may require any other ?ed · officer :to rec:over the amount so payable by)?'·and ·selling any goods belonging to ?th '? which ? under the control ofthe proper officer or such other specified officer; · · · · " " · t..·s:· -'? •CJ (c) (i) the proper offic? may, by a? in writing. require any ot.ber ?l'Sf>n ?m?om money· is due or may beco?eaue to ?ch person or who hol?or,Dlay ?ubsequ?ily,hold money for or on.?unt'of.S9Ch,?- to pay to the Government s: eith.er .foJ1bwith upon the money;?mu:g,due 0( being held, or , within tl;le tip:le sPFcified in tp.e notice not being before the money becqmes due or is held, 'so mucbQf the money as is sufficient to pay the amount ?ue·froni·sucll person·or the whole ofthem<>geywl)en ifisequal to or less than that amount; (ii) every pepon to :whopi the DQtice is issued under sub-claμse, 0) ,, shall be bound to comp)¥ with sucb, nqti? and in particular, wher4 any such. ffl>tite is issued to a post o?. banking oompany or an insurer, it shall not be necessary to produce any pass book. deposit receipt. policy or any other documentfor the, purpose of any entry, 'endorsement or the·like being made before payment is made,nutwlthstanding any rule, practice or requirement to the contrary; (iii) in case the person to whom a··· notice under. sub-clause· (l) ··has been issued, fails to make the payment in pursuance thereof to the Goeernment, be'·· shall be deemed to be a defaulter 1n respect ofthe amount specified in the notice arid . all the consequences of this· Act or the rulei made thereunder shall f<>lld'w; (iv) the officer issuing a notice ? sub-clause (i) may,.?t any Um,1t,"'1llt:nd.,.fN··I'.? such. notice, or .. ?n,d the . time fQI'· roaking any payment in pqrswuice ofthe notice; . 96 {v) any person making any payment in col'.l)plia.nce. with 4 no? issued un4er sub- cl?use. (j.) shaU be de«;? to have made the paym?nt VJ1<\?J'R.?,,4uthority of the person in default.

Where. a perso11, after any amounthas beco1I1e,due from him, creates a? on or parts "With the property belonging to him or in his possession by,way of sal?, mortgage, exchange. or any other modeof transfer whatsoeverof any of his properties in favourof 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 tu or any other sum payable by thesaid person: Provided that, such charge or transfer shall' lipt be void if it is madefor adequate consideration, in good fai? and without notice : of the pendency of such proceedings under this Act or without notice of suclitax orother sum payable by thesaid person, -9r with the previouspermission. of the proper officer. I Transferof property to? void in certain cases. I I il 31 of2016

Notwithstanding anything to the COlltrary contained in.?Y 1',w Tu to be first charge on for the time being in. force, save u, .o?erwise provided in. the property. Insolvency and Bankruptcy Code, 2016, any amount gayable by a.taxable person or·any other person on· account of tax. in?or.penaltywhich he is liable !OP,Y to the Government shall be a first giarge on the property of such taxable person or such?on. · ··

(I) Where during the.pendencyofany proceedings under section62 or section 63 or secijon.,?.or section 67 or section 73 or section .74, the CQ?ioner is of the opinion that forthe purpose of protecting the interest of the Government revenue, itis necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to thetaxable person in'such manner as·maybe prescribed. (2) · Every such provisional attachmentshall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (I). Pnwisional attachment-, protect revenue in certaill cases.

W11e.re a.'1y notice ofdemand in respect of any tax,, penalty. C'.ontinuation and interest or any other amount payable under this Act, (ht:reafter validation of certain · h' · r. ed " · d ") d recovery proceedin= m t is section re,etr to as Govemment ues • is serve i,- uponany taxable person 'or any other person and any· appeal or revision ?plication is filed. or •. any. other proceedings is inJti?ed in re.speptof such Government dues, then- 99 (a) wheresuch Government dues are enhanced in such appeal, .. revis!<.),Jl or other proceedings. the Commissioner shall serve upon the taxable person or any other person another notice ofdemand in respect of the amount by which such Government dues are enhanced and any:.3covery proceedings In ?lation to ·• such Goveriunent dues as are covered by the notice of demand ?ed upon him. before the disposal ofsuch appeal. revision or other proceedings m.ay. without tht, senice of any fresh notice of demand. be·continued· from the stage at which such proceedings· stood,blunediately before suqh disposal; (b) ,.where such Government dues are reduced in such appeal, revision·or in other procee<finss- (i) it shall not.be riecessaryfor the Commissioner to serve up.,n the 'taxable person a fresh notice of demand; (ii) the Q>mm.issioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;. (iii) any recovery proceedings initiated on the basis of the demand served up<>n him prior to the· disposal of such appeal, revision or other proceedings may becontinued in relation to theamount so reducedfrom the stage at which such proceedings stood immediately before such disposal. 100 CHAPTER XVI LIABILITY TO PAY IN CE&TAIN CASES