Section 79 of CGST Act,2017 -Recovery oftax

Section 79 of CGST Act,2017 -Recovery oftax Section 79 of CGST Act,2017 from bare act : (1) Where any amount payable by a person to the Government under any of theprovisions of this Act or the rules made thereunder is not paid, the proper officer shallproceed to recover the amount by one or more of the following modes, namely:

(a) the proper officer may deduct or may require any other specified officer todeduct the amount so payable from any money owing to such person which may beunder the control of the proper officer or such other specified officer;

(b) the proper officer may recover or may require any other specified officer torecover the amount so payable by detaining and selling any goods belonging to suchperson which are under the control of the proper officer or such other specified officer;

(c)

(i) the proper officer may, by a notice in writing, require any other person fromwhom money is due or may become due to such person or who holds or maysubsequently hold money for or on account of such person, to pay to the Governmenteither forthwith upon the money becoming due or being held, or within the time specifiedin the notice not being before the money becomes due or is held, so much of the moneyas is sufficient to pay the amount due from such person or the whole of the moneywhen it is equal to or less than that amount;

(ii) every person to whom the notice is issued under sub-clause (i) shall bebound to comply with such notice, and in particular, where any such notice is issuedto a post office, banking company or an insurer, it shall not be necessary to produceany pass book, deposit receipt, policy or any other document for the purpose of anyentry, endorsement or the like being made before payment is made, notwithstandingany rule, practice or requirement to the contrary;

(iii) in case the person to whom a notice under sub-clause (i) has been issued,fails to make the payment in pursuance thereof to the Government, he shall be deemedto be a defaulter in respect of the amount specified in the notice and all the consequencesof this Act or the rules made thereunder shall follow;

(iv) the officer issuing a notice under sub-clause (i) may, at any time, amend orrevoke such notice or extend the time for making any payment in pursuance of thenotice;

(v) any person making any payment in compliance with a notice issued undersub-clause (i) shall be deemed to have made the payment under the authority of theperson in default and such payment being credited to the Government shall be deemedto constitute a good and sufficient discharge of the liability of such person to theperson in default to the extent of the amount specified in the receipt;

(vi) any person discharging any liability to the person in default after service onhim of the notice issued under sub-clause (i) shall be personally liable to the Governmentto the extent of the liability discharged or to the extent of the liability of the person indefault for tax, interest and penalty, whichever is less;

(vii) where a person on whom a notice is served under sub-clause (i) proves tothe satisfaction of the officer issuing the notice that the money demanded or any partthereof was not due to the person in default or that he did not hold any money for oron account of the person in default, at the time the notice was served on him, nor is themoney demanded or any part thereof, likely to become due to the said person or beheld for or on account of such person, nothing contained in this section shall bedeemed to require the person on whom the notice has been served to pay to theGovernment any such money or part thereof;

(d) the proper officer may, in accordance with the rules to be made in this behalf,detain any movable or immovable property belonging to or under the control of suchperson, and detain the same until the amount payable is paid; and in case, any part ofthe said amount payable or of the cost of the distress or keeping of the property,remains unpaid for a period of thirty days next after any such distress, may cause thesaid property to be sold and with the proceeds of such sale, may satisfy the amountpayable and the costs including cost of sale remaining unpaid and shall render thesurplus amount, if any, to such person;

(e) the proper officer may prepare a certificate signed by him specifying theamount due from such person and send it to the Collector of the district in which suchperson owns any property or resides or carries on his business or to any officerauthorised by the Government and the said Collector or the said officer, on receipt ofsuch certificate, shall proceed to recover from such person the amount specifiedthereunder as if it were an arrears of land revenue;

(f) Notwithstanding anything contained in the Code of Criminal Procedure,1973, the proper officer may file an application to the appropriate Magistrate and suchMagistrate shall proceed to recover from such person the amount specified thereunderas if it were a fine imposed by him.

(2) Where the terms of any bond or other instrument executed under this Act or anyrules or regulations made thereunder provide that any amount due under such instrumentmay be recovered in the manner laid down in sub-section (1), the amount may, withoutprejudice to any other mode of recovery, be recovered in accordance with the provisions ofthat sub-section. (3) Where any amount of tax, interest or penalty is payable by a person to theGovernment under any of the provisions of this Act or the rules made thereunder and whichremains unpaid, the proper officer of State tax or Union territory tax, during the course ofrecovery of said tax arrears, may recover the amount from the said person as if it were anarrears of State tax or Union territory tax and credit the amount so recovered to the account ofthe Government. (4) Where the amount recovered under sub-section (3) is less than the amount due tothe Central Government and State Government, the amount to be credited to the account ofthe respective Governments shall be in proportion to the amount due to each suchGovernment.

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CHAPTER XV

DEMANDS AND RECOVERY

Chapter XV of the CGST Act,2017 covers twelve sections relating toDEMANDS and RECOVERYunder GST. All thesesections from the CGST Act,2017 are available for your ready reference. Section 73 :Determinationof tax notpaid or shortpaid orerroneouslyrefunded orinput taxcredit wronglyavailed orutilised forany reasonother thanfraud or anywillful misstatementor suppressionof facts Section 74 :Determinationof tax notpaid or shortpaid orerroneouslyrefunded orinput taxcredit wronglyavailed orutilised byreason offraud or any willfulmisstatementor suppressionof facts Section 75 :Generalprovisionsrelating todeterminationof tax Section 76 :Tax collectedbut not paid toGovernment Section 77 :Taxwrongfullycollected andpaid toCentralGovernmentor StateGovernment Section 78 :Initiation ofrecoveryproceedings Section 79 :Recovery oftax Section 80 :Payment oftax and otheramount ininstallments Section 81 :Transfer ofproperty tobe void incertain cases Section82:Tax to befirst chargeon property Section 83 :Provisionalattachment toprotectrevenue incertain cases Section 84 :Continuationand validationof certainrecoveryproceedings