General provisions relating to determination of tax

Section 75(1)

Where the service of notice or issuance of order is stayed by an order of a court or Appellate Tribunal, the period of such stay shall be excluded in computing the period specified in sub-sections (2) and (10) of section 73 or sub-sections (2) and (10) of section 74, as the case may be.

AI Explanation

When a court or Appellate Tribunal orders a stay on the service of notice or issuance of an order, the time during the stay is not counted when calculating specified periods under section 73 or section 74.

Section 75(2)

Where any Appellate Authority or Appellate Tribunal or court concludes that the notice issued under sub-section (1) of section 74 is not sustainable for the reason that the charges of fraud or any wilful-misstatement or suppression of facts to evade tax has not been established against the person to whom the notice was issued, the proper officer shall determine the tax payable by such person, deeming as if the notice were issued under sub-section (1) of section 73.

AI Explanation

If a court or Tribunal decides that a notice issued under section 74 is not valid due to lack of evidence for charges like fraud or wilful-misstatement, the proper officer will determine the tax payable as if the notice was issued under section 73.

Section 75(3)

Where any order is required to be issued in pursuance of the direction of the Appellate Authority or Appellate Tribunal or a court, such order shall be issued within two years from the date of communication of the said direction.

AI Explanation

Any order directed by an Appellate Authority, Appellate Tribunal, or court must be issued within two years from the date of communication of the direction.

Section 75(4)

An opportunity of hearing shall be granted where a request is received in writing from the person chargeable with tax or penalty, or where any adverse decision is contemplated against such person.

AI Explanation

A person subject to tax or penalty has the right to a hearing upon a written request or when an adverse decision is anticipated. The hearing can be adjourned up to three times for valid reasons.

Section 75(5)

The proper officer shall, if sufficient cause is shown by the person chargeable with tax, grant time to the said person and adjourn the hearing for reasons to be recorded in writing:

Provided that no such adjournment shall be granted for more than three times to a person during the proceedings.

AI Explanation

The proper officer may grant time and adjourn a hearing if sufficient cause is shown by the person liable for tax. However, no more than three adjournments are allowed during the proceedings.

Section 75(6)

The proper officer, in his order, shall set out the relevant facts and the basis of his decision.

AI Explanation

In the order, the proper officer must outline relevant facts and the basis for the decision reached.

Section 75(7)

The amount of tax, interest and penalty demanded in the order shall not be in excess of the amount specified in the notice and no demand shall be confirmed on the grounds other than the grounds specified in the notice.

AI Explanation

The amount of tax, interest, and penalty specified in the order cannot exceed the amounts mentioned in the initial notice. The demand should only be confirmed based on the grounds specified in the notice.

Section 75(8)

Where the Appellate Authority or Appellate Tribunal or court modifies the amount of tax determined by the proper officer, the amount of interest and penalty shall stand modified accordingly, taking into account the amount of tax so modified.

AI Explanation

If the Appellate Authority or Tribunal modifies the tax amount, the corresponding interest and penalty will be adjusted accordingly.

Section 75(9)

The interest on the tax short paid or not paid shall be payable whether or not specified in the order determining the tax liability.

AI Explanation

Interest on underpaid or unpaid tax is payable, irrespective of whether it is specified in the order determining tax liability.

Section 75(10)

The adjudication proceedings shall be deemed to be concluded, if the order is not issued within three years as provided for in sub-section (10) of section 73 or within five years as provided for in sub-section (10) of section 74.

AI Explanation

If an order is not issued within three years under section 73 or within five years under section 74, the adjudication proceedings are considered concluded.

Section 75(11)

An issue on which the Appellate Authority or the Appellate Tribunal or the High Court has given its decision which is prejudicial to the interest of revenue in some other proceedings and an appeal to the Appellate Tribunal or the High Court or the Supreme Court against such decision of the Appellate Authority or the Appellate Tribunal or the High Court is pending, the period spent between the date of the decision of the Appellate Authority and that of the Appellate Tribunal or the date of decision of the Appellate Tribunal and that of the High Court or the date of the decision of the High Court and that of the Supreme Court shall be excluded in computing the period referred to in sub-section (10) of section 73 or sub-section (10) of section 74 where proceedings are initiated by way of issue of a show cause notice under the said sections.

AI Explanation

When a decision from the Appellate Authority, Appellate Tribunal, or High Court negatively affects revenue in another case, and an appeal is pending in a higher court, the time between the initial decision and subsequent court decisions is not counted when calculating the period specified in sub-section (10) of section 73 or sub-section (10) of section 74. This applies when proceedings are initiated through a show cause notice under these sections.

Section 75(12)

Notwithstanding anything contained in section 73 or section 74, where any amount of self-assessed tax in accordance with a return furnished under section 39 remains unpaid, either wholly or partly, or any amount of interest payable on such tax remains unpaid, the same shall be recovered under the provisions of section 79.

[Explanation.—For the purposes of this sub-section, the expression "self-assessed tax" shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39.]

AI Explanation

Regardless of the provisions in section 73 or section 74, if any self-assessed tax remains unpaid, either in full or in part, or if interest on such tax is outstanding, the amount will be recovered as per the regulations outlined in section 79.

Explanation: The term "self-assessed tax" in this context includes tax payable for outward supplies detailed in section 37 but not included in the return filed under section 39.

Section 75(13)

Where any penalty is imposed under section 73 or section 74, no penalty for the same act or omission shall be imposed on the same person under any other provision of this Act.

AI Explanation

If a penalty is imposed under either section 73 or section 74, no additional penalty for the same act or omission will be imposed on the same individual under any other provision in this Act.