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