Amendment status not verified — confirm the current text below against the official source.
ln the Principal Act, afier Section 74, the following section shall be lnsertion of new inserted, namely:- Section 74A "74A. (1)Where it appears to the proper offrcerthat any tiax has not Determination been paid or short paid or erroneously refunded, or where input tax credit of lax not paid has been wrongly availed or utilised, he shall serve notice on the person or short paid or chargeable with tax which has not been so paid or which has been so erroneously short paid or to whom the refund has erroneously beeo made, or who refunded or has wrongly availed or utilised input tax credit, requiring him to show input tax credit cause as to why he should not pay the amount specified in the notice wrongly availed along with interest payable thereon under Section 50 and a penalty or utilised for leviable under the provisions ofthisAct or the rules made thereunder: any reason pertaining to Financial Year 2024-25 onward. The Arunachal Pradesh Extraordinary Gazette, April 7, 2025 5 Provided that no notice shall be issued, if the tax which has not been paid or short paid or erroneously refunded orwhere input tax credit has been wrongly availed or utilised in a financialyear is less than one thousand rupees. (2) The proper officer shall issue the notice under sub-section (1) within forty-two months from the due date for furnishing ofannual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilised relates to or within forty-two months from the date of erroneous refund. (3) Where a notice has been issued for any period under sub-section (1), the proper officer may serve a statement, containing the details of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for such periods other than those covered under sub-section (1), on the person chargeable wath tax. (4) The service of such statement shall be deemed to be service of notice on such person under sub-section (1), subject to the condition that the grounds relied upon for such tax periods other than those covered under sub-section ('l)are the same as are mentioned in the eadier notice. (5) The penalty in case where any tax whlch has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised,- (i) for any reason, other than the reason of fraud or any wilful-misstatement orsuppression of facts to evade tax, shall be equivalent to ten percent of tax due from such person or ten thousand rupees, whichever is higher; (ii) for the reason of fraud or any wilfu l-misstatement or suppression of facts to evade tax shall be equivalent to the tax due from such person. (6) The proper officer shall, after considering the represenEtion, ifany, made by the person chargeable with tax, determine the amountof tax, interest and penalty due from such person and issue an order. (7) The proper officer shall issue the order under sub-section (6) within twelve months from the date of issuance of notice specified in sub-section (2): Provided that where the proper officer is not able to issue the order within the specified period, the Commissione( or an otficer authorised by the Commissioner senior in rank to the proper officer but not below the rank of Joint Commissioner of Stiate Tax, may, having regard to the reasons for delay in issuance of the order under sub-section (6), to be recorded in writing, before the expiry ofthe specifled period, extend the said period further by a maximum of six months. (8) The person chargeable wlth tax where any tax has not been paid or short paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised for any reason, other than the reason of fraud or any wilful-misstatement or suppression of facts to evade tax, may,- (i) before service or notice under sub-section (1), pay the amount of tax along with interest payable under Section 50 of such tax on lhe basis of his own ascertainment of such tax or the tax as ascertained by the proper olf,cerand inform the proper officer in writing of such payment, and the proper office( on receipt of such information shall not-serve any notice under sub-section (1) or the statement under sub-section (3), as the case may be, in respect of the tax so paid o. any penalty payable under the provisions of this Act or the rules made thereunder; (ii) pay the said tax along with interest payable under Section 50 within sixty days of issue of show cause notice, and on doing so, no penalty shall be payable and allproceedings in respect of the said notice shall be deemed to be concluded. (9) The person chargeable with tax, where any tax has not been paad or short paid or erroneously refunded or where input tax credit has been wrongly availed or utilised by reason of fraud, or any wilful-misstatement or suppression of facts to evade tax, may,- 6 The Arunachal Pradesh Extraordinary Gazette, Aprn 7 , 2025 (i) before service of notice under sub-section (1), pay the amount of tax along with interest payable under Section 50 and a penalty equivalent to fifteen percent of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper otficer in writing of such payment. and the proper officer, on receipt of such information, shall not serve any notice under sub-section (1), in respect of the tax so paid or any penalty payable under the provisions of thisAct or the rules made thereunder; (ii) pay the said tax along with interest payable under Section 50 and a penalty equivalent to twenty-five percent ofsuch tax within sixty days of issue of the notice, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded; (iii) pay the tax along with interest payable thereon under Section 50 and a penalty equivalent to fifty percent of such tax within sixty days of communication of the order, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded. (10) Where the proper ofjicer is of the opinion that the amount paid under clause (i) of sub-section (8) or clause (i) ofsub-section (9) 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. ('11) Notwithstanding anything contained in clause (i) or clause (ii) of sub-section (8), penalty under clause (i) of sub-section (5) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period ofthirty days from the due date of payment of such tax. (12) The provisions of this section shallbe applicable for determination of tax pertaining to the FinancialYeat 2024-25 onwards. Explanation 1.- For the purposes of this Section,- (i) the expression "all proceedings in resp€ct of the said notice" shall not include proceedings under Section 132i (ii) where the notice under the same proceedings is issued to the main person liable to pay tax and some other persons and such proceedings against the main person have been concluded under this section, the proceedings against all the persons liable to pay penalty under Sections 122 and 125 are deemed to be concluded. Explanation 2.-Forthe purposes of thisAct, the expression 'suppression" shall mean non-declaration of facts or information which a taxable person rs required to declare in the return, statement, report or any other document furnished under thisAct or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer.