Section 73 of the CGST Act, 2017 empowers the proper officer to determine the tax liability of a person who has failed to pay the tax or has short-paid the tax. The proper officer can issue a show-cause notice to such a person and after considering the response, if any, can adjudicate the demand for payment of tax, interest, and penalty. The proper officer can also initiate recovery proceedings if the demand is not paid within the stipulated time.
In the context of Section 73 of the CGST Act, 2017, "proper officer" refers to an officer who is authorized to exercise the powers and perform the functions under the CGST Act. This includes officers of the Central Tax or State Tax, such as the Commissioner, Additional Commissioner, Joint Commissioner, Deputy Commissioner, Assistant Commissioner, or any other officer authorized by the Commissioner. The proper officer under Section 73 has the power to determine the tax liability of a person who has failed to pay the tax or has short-paid the tax, issue a show-cause notice, and adjudicate the demand for payment of tax, interest, and penalty.
The steps for demand under Section 73 of the CGST Act, 2017 as follows:
1. The proper officer issues a notice to the person who has failed to pay the tax or has short-paid the tax, asking them to show cause why the tax liability should not be determined and recovered.
2. The person is given an opportunity to submit a written response to the show-cause notice within the specified time.
3. Based on the response, if any, and after giving the person an opportunity for personal hearing, the proper officer determines the tax liability along with interest and penalty, if any.
4. The proper officer issues a demand order for the payment of the determined amount to the person, specifying the due date for payment.
5. If the person fails to pay the demanded amount within the specified time, the proper officer can initiate recovery proceedings to recover the outstanding amount.
6. The person can file an appeal against the demand order before the appropriate appellate authority.
Q: Who is a "proper officer" under Section 73 of the CGST Act, 2017?
A: "Proper officer" means an officer authorized to exercise the powers under the CGST Act, 2017.
Q: In what situations can the proper officer determine the tax liability under Section 73?
A: The proper officer can determine the tax liability under Section 73 when a person fails to pay the tax or has short-paid the tax.
Q: What is a show-cause notice under Section 73 of the CGST Act, 2017?
A: A show-cause notice is a formal communication issued by the proper officer to a person who has failed to pay the tax or has short-paid the tax, asking them to explain why the tax liability should not be determined and recovered.
Q: Can a person challenge the determination of tax liability made by the proper officer under Section 73?
A: Yes, a person can challenge the determination of tax liability by filing an appeal before the appropriate appellate authority.
Q: What happens if the demand for payment of tax, interest, and penalty is not paid within the stipulated time?
A: If the demand is not paid within the stipulated time, the proper officer can initiate recovery proceedings.
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