231.            The assistant commissioner issued a show cause notice on 1.4.2017 to the taxable person demanding:

 

Tax not levied= 30,000

Interest u/s 50

Penalty =100% tax or if paid within 30 days then 10% of tax or 10,000 (whichever is more)

 

Representations were made by the taxable person & the proper officer re-calculated the tax liability as follows:

Tax = 20,000

 

What shall be the liability of the taxable person if he has made the payment in the following manner:

 

(i) tax = 20,000, interest thereon on 25.4.2017

(ii) tax = 12,000, interest thereon on 25.4.2017

 (iii) tax = 20,000, interest = nil on 27.4.2017

(iv) tax = nil

 

As per section 73(8),(9) of the CGST Act, where a taxable person, after making representation, does not pays the amount of tax & interest in full within 30 days of issue of SCN, then proper officer shall after giving an opportunity of being heard, issue an order demanding penalty= 10% tax or 10,000 (whichever is higher).

 

 (i) The taxable person has discharged full amount of tax & interest thereon u/s 50. the proceeding is said to be concluded.

 

(ii) the taxable person has paid tax = 12000 along with interest. The proper officer shall after giving an opportunity of being heard, issue an order demanding :

Tax = 8,000

Interest u/s 50

Penalty = 10% of (8,000) or 10,000 (whichever is more), to be paid within 30 days of order

 

(iii) the taxable person has paid full tax amount but not interest. The proper officer shall after giving an opportunity of being heard, issue an order demanding:

Interest on 20,000 payable u/s 50 and 100% penalty amount.

(iv) the taxable person has after making representation not paid any amount due. The proper officer shall after giving an opportunity of being heard, issue an order demanding:

Tax=20,000

Interest on 20,000 payable u/s 50

Penalty=10% of (20,000)or 10,000 (whichever is more), to be paid within 30 days of order.