Recovery of tax, Section 79 of CGST Act, 2017

 

 

Section 79 of CGST Act, 2017 Recovery of tax

 

The below post explains about Recovery of tax under section 79 of CGST Act,2017.

 

Section 79 of CGST Act, 2017 explains Recovery of tax as below: (The amendments if any will also be updated here soon).

 

The extract of Section 79 of CGST Act,2017 quoted below:

 

79  Recovery of tax.

 

79. (1) Where any amount payable by a person to the 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:––

Recovery of tax, Section 79 of CGST Act, 2017(a) the proper officer may deduct or may require any other specified officer to

deduct the amount so payable from any money owing to such person which may be

under the control of the proper officer or such other specified officer;

(b) the proper officer may recover or may require any other specified officer to

recover the amount so payable by detaining and selling any goods belonging to such

person which are under the control of the proper officer or such other specified officer;

(c) (i) the proper officer may, by a notice in writing, require any other person from

whom money is due or may become due to such person or who holds or may

subsequently hold money for or on account of such person, to pay to the Government

either forthwith upon the money becoming due or being held, or within the time specified

in the notice not being before the money becomes due or is held, so much of the money

as is sufficient to pay the amount due from such person or the whole of the money

when it is equal to or less than that amount;

(ii) every person to whom the notice is issued under sub-clause (i) shall

be bound to comply with such notice, and in particular, where any such notice is

issued to a post office, banking company or an insurer, it shall not be necessary

to produce any pass book, deposit receipt, policy or any other document for the

purpose of any entry, endorsement or the like being made before payment is

made, notwithstanding any rule, practice or requirement to the contrary;

(iii) in case the person to whom a notice under sub-clause (i) has been

issued, fails to make the payment in pursuance thereof to the Government, he

shall be deemed to be a defaulter in respect of the amount specified in the notice

and all the consequences of this Act or the rules made thereunder shall follow;

(iv) the officer issuing a notice under sub-clause (i) may, at any time,

amend or revoke such notice or extend the time for making any payment in

pursuance of the notice;

(v) any person making any payment in compliance with a notice issued

under sub-clause (i) shall be deemed to have made the payment under the

authority of the person in default and such payment being credited to the

Government shall be deemed to constitute a good and sufficient discharge of

the liability of such person to the person in default to the extent of the amount

specified in the receipt;

(vi) any person discharging any liability to the person in default after

service on him of the notice issued under sub-clause (i) shall be personally liable

to the Government to the extent of the liability discharged or to the extent of the

liability of the person in default for tax, interest and penalty, whichever is less;

(vii) where a person on whom a notice is served under sub-clause (i)

proves to the satisfaction of the officer issuing the notice that the money

demanded or any part thereof was not due to the person in default or that he did

not hold any money for or on account of the person in default, at the time the

notice was served on him, nor is the money demanded or any part thereof, likely

to become due to the said person or be held for or on account of such person,

nothing contained in this section shall be deemed to require the person on

whom the notice has been served to pay to the Government any such money or

part thereof;

(d) the proper officer may, in accordance with the rules to be made in this behalf,

distrain any movable or immovable property belonging to or under the control of such

person, and detain the same until the amount payable is paid; and in case, any part of

the said amount payable or of the cost of the distress or keeping of the property,

remains unpaid for a period of thirty days next after any such distress, may cause the

said property to be sold and with the proceeds of such sale, may satisfy the amount

payable and the costs including cost of sale remaining unpaid and shall render the

surplus amount, if any, to such person;

(e) the proper officer may prepare a certificate signed by him specifying the

amount due from such person and send it to the Collector of the 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 of

such certificate, shall proceed to recover from such person the amount specified

thereunder as if it were an arrear of land revenue;

(f) 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 any amount due under such instrument

may be recovered in the manner laid down in sub-section (1), the amount may, without

prejudice to any other mode of recovery, be recovered in accordance with the 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 State tax or Union territory 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 State tax or Union territory tax and credit the amount so recovered to the account of

the 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 of

the respective Governments shall be in proportion to the amount due to each such

Government.

 

 

The above information clarifies about Recovery of tax under section 79 of CGST Act,2017.  

 

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