Tax collected but not paid to Government.

Section 76(1)

Notwithstanding anything to the contrary contained in any order or direction of any Appellate Authority or Appellate Tribunal or court or in any other provisions of this Act or the rules made thereunder or any other law for the time being in force, every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not.

AI Explanation

Regardless of any orders or directions from authorities, if someone has collected tax from another person and hasn't paid it to the government, they must promptly do so. This applies regardless of whether the goods or services involved are taxable.

Section 76(2)

Where any amount is required to be paid to the Government under sub-section (1), and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act.

AI Explanation

If the tax amount hasn't been paid as required in Section 1, the proper officer can issue a notice to the person responsible. This notice will ask them to explain why the specified amount shouldn't be paid to the government and why a penalty shouldn't be imposed on them under the law.

Section 76(3)

The proper officer shall, after considering the representation, if any, made by the person on whom the notice is served under sub-section (2), determine the amount due from such person and thereupon such person shall pay the amount so determined.

AI Explanation

After considering any representations made by the person in response to the notice, the proper officer will determine the amount owed. The person must then pay this specified amount.

Section 76(4)

The person referred to in sub-section (1) shall in addition to paying the amount referred to in sub-section (1) or sub-section (3) also be liable to pay interest thereon at the rate specified under section 50 from the date such amount was collected by him to the date such amount is paid by him to the Government.

AI Explanation

In addition to the amount determined in Section 1 or Section 3, the person is also responsible for paying interest. This interest accrues from the date the tax amount was collected to the date it is paid to the government, at a rate specified in Section 50.

Section 76(5)

An opportunity of hearing shall be granted where a request is received in writing from the person to whom the notice was issued to show cause.

Section 76(6)

The proper officer shall issue an order within one year from the date of issue of the notice.

Section 76(7)

Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period of such stay shall be excluded in computing the period of one year.

AI Explanation

Section 76(5): Opportunity for Hearing

If a person, who has received a notice to show cause, submits a written request, they will be granted an opportunity for a hearing.

Section 76(6): Timely Order Issuance

The proper officer is required to issue an order within one year from the date when the notice was initially issued.

Section 76(7): Exclusion of Time in Case of Court Stay

If the issuance of an order is temporarily halted by a court or Appellate Tribunal order, the period of such stay will not be counted when calculating the one-year timeframe.

Timely Adjudication Process

Ensuring fairness and efficiency in the adjudication process, Section 76 of the legislation outlines specific provisions regarding the opportunity for a hearing, the timeframe for issuing orders, and the exclusion of time in cases of legal stays. These measures aim to streamline the resolution of matters and maintain a balance between expeditious proceedings and the right to present a case.

Section 76(8)

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

Section 76(9)

The amount paid to the Government under sub-section (1) or sub-section (3) shall be adjusted against the tax payable, if any, by the person in relation to the supplies referred to in sub-section (1).

Section 76(10)

Where any surplus is left after the adjustment under sub-section (9), the amount of such surplus shall either be credited to the Fund or refunded to the person who has borne the incidence of such amount.

Section 76(11)

The person who has borne the incidence of the amount, may apply for the refund of the same in accordance with the provisions of section 54.

AI Explanation

Proper Officer's Order

In any decision made under Section 76(8), the proper officer is required to outline the relevant facts and the basis for reaching the decision.

Adjustment Against Tax Payable

As per Section 76(9), the amount paid to the Government under sub-section (1) or sub-section (3) is to be adjusted against any tax payable by the person in connection with the supplies mentioned in sub-section (1).

Surplus Adjustment

Under Section 76(10), if there is a surplus remaining after the adjustment described in sub-section (9), this surplus amount will either be credited to the Fund or refunded to the person who initially bore the incidence of that amount.

Refund Application

In accordance with Section 76(11), the individual who bore the incidence of the amount may apply for a refund following the procedures outlined in Section 54.