Determination of tax & adjudication of demand by Proper Officer – Section 73 – CGST Act, 2017

Sushil Kumar Antal 27 Sep 2022 92,205 Views 0 comment Print Goods and Services Tax | Articles

Determination of tax and adjudication of demand by Proper Officer under Section 73 of CGST Act, 2017

Under GST, demand proceedings could be initiated by the proper officer as per provisions prescribed under Chapter XV ‘Demand and Recovery’ of the Central Goods and Services Tax, Act, 2017 (‘CGST Act, 2017’). The following provisions have been made under for the proper officer to demand and recovery of tax:-

a.	Section 73	Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful misstatement or suppression of facts.
b.	Section 74	Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts.
c.	Section 75	General provisions relating to determination of tax.
d.	Section 76	Tax collected but not paid to Government.
e.	Section 77	Tax wrongfully collected and paid to Central Government or State Government.
f.	Section 78	Initiation of recovery proceedings.
g.	Section 79	Recovery of Tax.
h.	Section 80	Payment of tax and other amount in instalments.

Determination of tax and Adjudication of demand by proper officer under GST law.

The Proper Officer has power to determine the tax liability and pass an adjudication order under Section 73 and 74 of the CGST Act, 2017. Since tax is payable on self-assessment basis, it is possible that the taxable person may not have correctly paid the tax or may not have paid the tax at all. It is also possible that the taxable person might have claimed refund and got refund of tax or input tax credit. In such a case, proper office can issue show cause notice (‘SCN’) and adjudicate the demand.

Determination of tax & adjudication of demand by Proper Officer - Section 73 - CGST Act, 2017

The Proper Officer has to determine whether the actions of the registered tax payers involving non-payment or short payment of tax, or excess claim of input tax credit is for reason of (or not involving) fraud, wilful misstatement, or suppression of facts on the part of the tax payers. In case the non-payment or short payment etc of tax is for reasons other than fraud, wilful misstatement or suppression of fact, the necessary adjudication involves application of Section 73 of the CGST, Act, 2017. However, if the non/short-payment of tax, excess claim of input tax credit etc is by way of fraud, misstatement suppression of facts etc. necessary adjudication and other follow is provided under Section 74 of the CGST Act, 2017.

The CGST Act, 2017 does not define the term ‘Adjudication’. But, section 2 (91) defines, “Proper Officer in relation to any function to be performed under this Act, means the Commissioner or the officer of the central tax who is assigned that function by the Commissioner in the Board”.

Section 2(4) of the CGST Act, 2017 defines ‘Adjudicating authority’ to mean any authority, appointed or authorised to pass any order or decision under this Act, but does not include the Central Board of Indirect Taxes and Customs, the Revisional Authority, the Authority for Advance Ruling, the Appellate Authority for Advance Ruling, the Appellate Authority, the Appellate Tribunal and the Authority referred to in subsection (2) of section 171.

Any order/decision passed under the Act is called an act of Adjudication. The adjudication involves activities such as the scrutiny of returns, collection of information to find out taxable persons who might have not may payment short payment, excess availed input tax credit, or sought refund, giving SCN seeking replies to from the tax payers, giving opportunity of being heard before passing of final orders.

Authority empowered to issue SCNs and adjudication of demand.

As per CBI & C Circular No. 3/3/2017-GST dated 05-07-2017 as amended by CBI&C Circular No. 31/05/2018 – GST (F. No. 349/75/2017-GST) dated 09 February 2018 (i.e. Proper Officer relating to provisions other than registration and composition under CGST Act, 2017), the Superintendents of Central Tax shall also be empowered to issue SCNs and orders under section 74 of the CGST Act, 2017. It is to be noted that before the amendment, Superintendents of Central Tax was having power to issue SCNs and orders under section 73 of the CGST Act, 2017.

It is to be noted that for optimal distribution of the work relating to the issuance of SCNs and orders under sections 73 and 74 of the CGST Act, 2017 and also under the IGST Act, 2017 monetary limits for different levels of officers of central tax have been prescribed. In pursuance of clause (91) of section 2 of the CGST Act, 2017 read with section 20 of the IGST Act, 2017 the Board has assigned the officers mentioned in Column (2) of the Table below, the functions as the proper officers in relation to issue of SCN and orders under sections 73 and 74 of the CGST Act, 2017 and section 20 of the IGST Act, 2017 (read with sections 73 and 74 of the CGST Act), up to the monetary limits as mentioned in columns (3), (4) and (5) respectively of the Table below: –

Sl. No.	Officer of Central Tax	Monetary limit of the amount of central tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act	Monetary limit of the amount of integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to matters in relation to integrated tax vide section 20 of the IGST Act	Monetary limit of the amount of central tax and integrated tax (including cess) not paid or short paid or erroneously refunded or input tax credit of central tax and integrated tax wrongly availed or utilized for issuance of show cause notices and passing of orders under sections 73 and 74 of CGST Act made applicable to integrated tax vide section 20 of the IGST Act
(1)	(2)	(3)	(4)	(5)
1	Superintendent of Central Tax	Not exceeding Rupees 10 lakhs	Not exceeding Rupees 20 lakhs	Not exceeding Rupees 20 lakhs
2	Deputy or Assistant Commissioner of Central Tax	Above Rupees 10 lakhs and not exceeding Rupees 1 crore	Above Rupees 20 lakhs and not exceeding Rupees 2 crores	Above Rupees 20 lakhs and not exceeding Rupees 2 crores
3	Additional or Joint Commissioner of Central Tax	Above Rupees 1 crore without any limit	Above Rupees 2 crores without any limit	Above Rupees 2 crores without any limit

*Please refer Circular No. 1/1/2017-GST dated 26th June, 2017, Circular No. 3/3/2017 – GST dated 5th July, 2017, Circular No. 31/05/2018 – GST (F. No. 349/75/2017-GST) dated 09 February 2018 and Circular No. 169/01/2022-GST 12-2-2022.

Determination of tax and adjudication of demand by Proper Officer under Section 73 of CGST Act, 2017 (in case of n charge of fraud or any wilful-misstatement or suppression of facts).

Provisions in respect of raising SCN demanding tax, interest and penalty have been made in section 73 of CGST Act, 2017 in case where there is no charge of suppression of facts, wilful mis-statement or fraud. Section 73 of CGST Act, 2017, provides for determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilful-misstatement or suppression of facts. This section further provides that the adjudication order will be issued within three years from the due date of filing of annual return for the year to which the discrepancy is noticed. This section also provides that the SCN is required to be issued at least three months prior to the time limit for issuance of adjudication order. It has also been provided that SCN need not be issued if tax along with interest is paid before issue of such notice. This section also provides that where any person chargeable with tax pays the tax along with interest within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the notice shall be deemed to be concluded.

The steps for demand under Section 73 of the CGST Act, 2017 are summarised as under:

1. First, it is to be determined by the Proper Office in his opinion whether the tax not/short paid etc. is for reason other than on account of fraud, wilful misstatement, suppression of fact.

2. If answer to question number 1 is affirmative, the Proper Officer shall proceed under Section 73 of the CGST Act, 2017, else under Sec 74 of this Act.

3. Pre-SCN intimation to the defaulting taxable person to reduce litigation. The Proper Officer shall ascertain and compute the details of tax, interest and penalty payable and also communicate the same to the defaulting tax payer, in Part A of Form GST DRC-01A. [Rule 142(1A) of the CGST Rules, 2017].

4. A taxpayer, on receipt of intimation in FORM DRC-01A, may use the second part of the said form i.e. Part B, to communicate to the officer, if he (taxable person) has made whole or part payment of the ascertained liability, or if the liability is not acceptable by him.

5. In case the taxable person pays the full amount mentioned as mentioned above and informs the Proper Officer, the proceedings under Section 73(1) shall stand concluded and there would be no need for issue of SCN.

6. When the amount paid as per the ascertainment of the assessee falls short, the proper officer shall issue a SCN for the amount of shortfall under Section 73(1) of the CGST Act, 2017. However, the provision of pre-notice is optional e.f. 15-10-2020 and not mandatory.

7. Thereafter, the Proper office shall issue a notice under section 73(1) in the following situation involving payment of tax has arisen in cases other than fraud, wilful misstatement or suppression of facts-

- Tax not paid; or
- Tax short paid; or
- Tax erroneously refunded; or
- Input tax credit wrongly availed or utilised.

8. The notice under section 73(1) of the CGST Act, 2017 shall be in Form GST DRC-01 [Rule 142(1)(a) of CGST Rules, 2017].

9. The proper office may issue a statement under section 73(3) of the CGST Act, 2017 in lieu of SCN, if SCN on same grounds was issued for earlier period, in Form GST DRC-02 [Rule 142(1)(b) of CGST Rules, 2017].

10. Where the tax payer makes the payment of tax along with interest within 30 days of issuance of SCN and intimates the proper officer of such payment in FORM GST DRC-03, the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice and subsequently no penalty shall be payable. [Sub-section 8 of Section 73 & Rule 142(3)].

11. Where the person files a reply or representation, the proper officer after considering the representation, shall issue an order in FORM GST DRC-06, consisting of the amount of tax, interest and penalty [Sub-section 9 of Section 73 & Rule 142(4)].

12. The amount of penalty shall be higher of 10% of tax or Rs.10,000 (Sub-section 9 of Section 73).

13. A summary of such order shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax. Such summary of order in Form GST DRC-07 shall be treated as a notice for recovery. [Rule 142(5) & (6)].

14. Time limit for issue of the determination order: As per Section 73(10), the Proper Officer is required to pass the order within three years from:

a. the due date of filing of Annual Return under Section 44 for the year to which the short payment or non-payment or input tax credit wrongly availed or utilised relates or

b. date of erroneous refund.

15. Time limit for issue of SCN: The Proper Officer is required to issue notice at least three months prior to the time limit specified under Section 73(10) for issuance of an order. [Sub-section 2 of Section 73].

16. Notwithstanding anything contained in Section 73(6) and Section 73(8), penalty under Section 75(9) shall be payable where any amount of:

a. Any amount of Self-assessed tax or

b. Any amount collected Tax collected as tax

has not been paid within a period of thirty days from the due date of payment of such tax.

Pre-SCN intimation to the defaulting taxable person to reduce litigation: –

Text of statutory provisions-

“(5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3), pay the amount of tax along with interest payable thereon under section 50 on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer and inform the proper officer in writing of such payment.

(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the tax so paid or any penalty payable under the provisions of this Act or the rules made thereunder.

(7) Where the proper officer is of the opinion that the amount paid under sub-section (5) 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.”

Provision for pre-notice consultation has been made in section 28(1) of Custom Act and similar provision has been made in CGST Act, 2017 also. This provision of pre-notice communication has been incorporated to promote voluntary compliance and reduce litigation. However, the provision of pre-notice is optional w.e.f. 15-10-2020 and not mandatory and hence is not likely to be used much by department.

The provision of pre-notice communication has been made to enable the taxable person to make the payment on own before receipt of proper SCN. Sub-section 5 of section 73 of the CGST Act, 2017 provides that if any person chargeable with tax wants to pay the amount of tax along with interest under section 50 on his own ascertainment of such tax, or the tax as ascertained by the proper office, then he can deposit tax along with interest and inform the proper office in writing of such payment. The basis of payment must be:

Either on the basis of assessee’s own ascertainment of tax, or
On the basis of tax ascertained by the proper officer.

This payment can be made on own or on the basis of communication made by proper officer under Rule 142(1A) of CGST Rules, 2017 (pre-notice communication). The proper officer may, before issue of SCN under section u/s 73(1), communicate details of tax, interest and penalty ascertained by him in Part A of Form GST DRC-01A.

Text of Rule 142(1A) of CGST Rules, 2017-

“(1A) The proper office may, before service of notice to the person chargeable with tax, interest and penalty, under sub-section (1) of Section 73 or sub-section (1) of Section 74, as the case may be, communicate the details of any tax, interest and penalty as ascertained by the said officer, in PART A of FORM GST DRC-01A.”

The taxable person shall inform department in Form GST DRC-03. On receipt of such information, the proper officer shall issue an acknowledgement for accepting the payment made by the said person in Form GST DRC-04 [Rule 142(2) of the CGST Rules, 2017] and shall not serve any notice or statement with respect to the tax so paid. The proper office, on receipt of such information, shall not serve any SCN in respect of the tax so paid or any penalty leviable under the provisions of CGST Act, 2017 or the rules made thereunder [Section 73(6) of the CGST Act, 2017].

Text of Rule 142(2) of CGST Rules, 2017-

“(2) Where, before the service of notice or statement, the person chargeable with tax makes payment of the tax and interest in accordance with the provisions of sub-section (5) of section 73 or, as the case may be, tax, interest and penalty in accordance with the provisions of sub-section (5) of section 74, or where any person makes payment of tax, interest, penalty or any other amount due in accordance with the provisions of the Act, whether on his own ascertainment or, as communicated by the proper officer under sub-rule (1A), he shall inform the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an acknowledgment, accepting the payment made by the said person in FORM GST DRC-04.”

Please note that the word ‘shall not serve SCN’ under Section 73(6) of CGST Act, 2017 means it is a mandatory provision, so that the issue should be closed. However, it is to be noted that prosecution under section 132 of CGST Act, 2017 can continue, as Explanation (1)(i) to section 74 of CGST Act, 2017 provides that the expression “all proceedings in respect of the said notice” shall not include proceedings under section 132.”

Further, the taxable person can make partial payment or make submission against proposed liability, he can make submission in Part B of Form GST DRC-01A [Rule 142(2A) of the CGST Rule, 2017].

Text of Rule 142(2A) of CGST Rules, 2017-

“(2A) Where the person referred to in sub-rule (1A) has made partial payment of the amount communicated to him or desires to file any submissions against the proposed liability, he may make such submission in PART B of FORM GST DRC-01A.”

Also, as per sub-section (7) of Section 73 of the CGST Act, 2017, where the proper officer is of opinion that the amount paid under section 73(5) falls short of the amount actually payable, he shall proceed to issue the notice (SCN) under section 73(1), in respect of such amount which falls short of the amount actually payable.

Issuance of SCN if pre-notice communication fails between taxable person and proper officer. [Section 73(1) of the CGST Act, 2017].

Text of statutory provisions-

“73. (1) Where it appears to the proper officer that 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, he shall serve notice on the person chargeable with tax which has not been so paid or which has been so short paid or to whom the refund has erroneously been made, or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why he should not pay the amount specified in the notice along with interest payable thereon under section 50 and a penalty leviable under the provisions of this Act or the rules made thereunder.”

Section 73 of CGST Act, 2017 can be invoked or applied where it appears to the Proper Officer that following situation involving payment of tax has arisen in cases other than fraud, wilful misstatement or suppression of facts-

Tax not paid; or
Tax short paid; or
Tax erroneously refunded; or
Input tax credit wrongly availed or utilised.

The notice under section 73(1) of the CGST Act, 2017 shall be in Form GST DRC-01 [Rule 142(1)(a) of CGST Rules, 2017].

Text of Rule 142(1)(a) of CGST Rules, 2017-

“(1) The proper office shall, along with the-

(a) notice issued under section 52 or section 73 or section 74 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130, a summary thereof electronically in FORM GST DRC-01.

(b) XXX”

It is to be noted that section 73 of the CGST Act, 2017 also applies for recovery of interest payable which is not paid or partly paid or interest erroneously refunded. But interest cannot be demanded by issuing notice under section 50 of CGST Act, 2017. Form GST DRC-01 notice is required to be served with notice issued under section 52, 73, 74, 76, 122,123,124,125,127,129 or 130 of CGST Act, 2017. This does not cover notice under section 50 of CGST Act, 2017. Hence, for demand of interest, notice should be issued under GST DRC-07, as per rule 142(5) of CGST Rules, 2107-Rajkamal Builder Infrastructure v. UOI (2021) 127 taxman.com 150 (Guj HC).

Time Limit for issuance of SCN [Section 73(2) of the CGST Act, 2017].

The notice required to be issued under section 73(1) shall be issued by proper officer as per time limit given in sub-section (10) i.e., three months before issuance of the time limit for issuance of order. The proper officer shall issue show cause notice at least 3 months prior to the time limit of 3 years for issuance of order i.e.

Before completion of 3 years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to, or
Within 3 years from the date of erroneous refund, as the case may be.

Statement instead of SCN, if SCN on same grounds was issued for earlier period [Section 73(3) of the CGST Act, 2017].

Text of statutory provisions-

“(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 with 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 (1) are the same as are mentioned in the earlier notice.”

Where a SCN has been issued for any earlier period under section 73(1) of the CGST Act 2017, the proper office 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 earlier SCN, on the person chargeable with tax. The service of such statement shall be deemed to be service of SCN on the person chargeable with tax.

The statement under section 73(3) of the CGST Act, 2017 shall be in Form GST DRC-02 [Rule 142(1)(b) of CGST Rules, 2017]. This provision has been enabled only to save paper work at department, where SCN on same grounds was issued for earlier period.

Text of Rule 142(1)(b) of CGST Rules, 2017-

“(1) The proper office shall, along with the-

(a) XXX.

(b) statement under sub-section (3) of section 73 or sub-section (3) of section 74, a summary thereof electronically in FORM GST DRC-02, specifying therein the details of the amount payable.”

No Penalty if tax with interest paid within 30 days from issue of SCN.

Text of statutory provisions-

“(8) Where any person chargeable with tax under sub-section (1) or sub-section (3) pays the said tax along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said notice shall be deemed to be concluded.

Where any person chargeable with tax under section 73(1) [in case of issuance of SCN] or section 73(3) [in case of issuance of statement], pays the tax along with interest payable u/s 50 within 30 days of issuance of SCN, no penalty shall be payable and all the proceedings in respect of said tax as contained in show cause notice will be deemed to be concluded. However, it is to be noted that prosecution under section 132 of CGST Act, 2017 can continue, as Explanation (1)(i) to section 74 of CGST Act, 2017 provides that the expression “all proceedings in respect of the said notice” shall not include proceedings under section 132.”

Further the taxable person shall inform department about such payment in Form GST DRC-03. The proper office shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice [Rule 142(3) of the CGST Rule, 2017].

Text of Rule 142(3) of CGST Rules, 2017-

“(3) Where the person chargeable with tax makes payment of tax and interest under sub-section (8) of section 73 or, as the case may be, tax, interest and penalty under sub-section (8) of Section 74 within thirty days of the service of a notice under sub-rule (1), or where the person concerned makes payment of the amount referred to in sub-section (1) of section 129 within seven days of the notice issued under sub-section (3) of section 129 but before the issuance of order under the said sub-section (3), he shall intimate the proper officer of such payment in FORM GST DRC-03 and the proper officer shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice.”

Demand order with maximum 10% penalty under section 73(9) of the CGST Act, 2017.

Text of statutory provisions-

“(9) The proper officer shall, after considering the representation, if any, made by person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and issue an order.”

This sub-section provides for determination of demand and issuance of order for determining the amount of tax, interest and penalty. However, such an order should be issued after considering the representation. As a principle of natural justice, an opportunity of personal hearing should be provided before issuance of an order to a taxable person. However, no such opportunity needs to be provided before issuance of SCN. The proper officer can levy a penalty for an amount not exceeding 10% of the tax or Rs. 10,000/- whichever is higher.

A summary of such order shall be uploaded electronically in FORM GST DRC-07 specifying therein the amount of tax, interest and penalty payable by the person chargeable with tax. Such summary of order shall be treated as a notice for recovery. [Rule 142(5) & (6) of the CGST Rule, 2017].

Text of Rule 142(5) & (6) of CGST Rules, 2017-

“(5) A summary of the order issued under section 52 or section 62 or section 63 or section 64 or section 73 or section 74 or section 75 or section 76 or section 122 or section 123 or section 124 or section 125 or section 127 or section 129 or section 130 shall be uploaded electronically in FORM GST DRC-07, specifying therein the amount of tax, interest and penalty, as the case may be, payable by the person concerned.

(6) The order referred to in sub-rule (5) shall be treated as the notice for recovery.”

Time Limit for issue of demand order [Section 73(10) of the CGST Act, 2017].

Text of statutory provisions-

“(10) The proper officer shall issue the order under sub-section (9) within three years from the due date for furnishing of annual 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 three years from the date of erroneous refund.”

The proper officer shall issue an order within

3 years from the due date for furnishing of annual return for the financial year to which the tax not paid or short paid or input tax credit wrongly availed or utilized relates to, or
within 3 years from the date of erroneous refund, as the case may be.

It is to be noted that in case the proceedings were started under section 73 of the CGST Act, 2017, but no order was issued within the prescribed time period of 3 years of date of filing of annual return of relevant year, the proceedings will come to an end due to reason of expiry of limitation period. Any order issued after the expiry of limitation period of 3 years will be treated as defective order thus ineffective.

Normally, due date for filing return is nine months from close of financial year i.e. 31^st December. However, in initial stages of GST, the due dates were extended as follows-

*Sr No.*	*Period*	*Last date to file Annual Return*
1.	FY 2017-18	5^th and 7^th February, 2020 (Notification No. 06/2020-Central Tax) dated 03.02.2020
2.	FY 2018-19	31^st December, 2020 (Notification No. 08/2020-Central Tax) dated 28.10.2020
3.	FY 2019-20	31^st March, 2021 (Notification No. 04/2021-Central Tax) dated 28.02.2021

These dates should be considered for calculating period of 3/5 years for issuing SCN and confirming Demand. CBI&C Instruction No. 2/2021-GST-Investigation dated 22-09-2021.

Mandatory Penalty [Section 73(11) of the CGST Act, 2017]

Text of statutory provisions-

“(11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty under sub-section (9) shall be payable where any amount of self-assessed tax or any amount collected as tax has not been paid within a period of thirty days from the due date of payment of such tax.”

Sub-section (11) of CGST Act, 2017 is an overriding provision and over rides sub-section (6) and (8) in respect of penalty. This sub-section overrides sub-section (6) and (8) and states that penalty under sub-section (9) (10% of tax or ₹ 10,000/- whichever is higher) shall still be payable were amount of tax which is self-assessed or amount of tax is not paid within thirty days from the due date of payment of such tax. Thus, it appears that this is the mandatory penalty payable.

*****

Disclaimer: Nothing contained in this document is to be construed as a legal opinion or view of either of the author whatsoever and the content is to be used strictly for informational and educational purposes. While due care has been taken in preparing this article, certain mistakes and omissions may creep in. the author does not accept any liability for any loss or damage of any kind arising out of any inaccurate or incomplete information in this document nor for any actions taken in reliance thereon.