172.            The following demand was confirmed to Mr. A on non-payment of which recovery proceedings were initiated by the department on 20th September 2017.

Tax: 3 lacs

Interest u/s 50

penalty: 50,000

Discuss the mode of recovery if:

(i)                 Amount Rs.10,000 was owing to Mr A, which was under the control of department

(ii)             The department had goods worth Rs.20,000 under detention.

(iii)              The department has seized an immovable property of A costing Rs.5 lakh.

As per section 79 of the CGST Act, The amount due  can be recovered by the department in the following manner::

(i)                  Amount owing to A under the control of officer= Rs.10,000, which will be approppriated.

(ii)                Selling the detained goods Rs.20,000

(iii)               Selling the immovable property  and retain Rs.3,20,000 along with interest u/s 50 and pay the balance to the taxable person.