Tax collected but not paid requires immediate payment to Government, with interest, notice and hearing, and possible penalty. Every person who has collected tax amounts and not paid them to the Government must forthwith pay those amounts irrespective of taxability of supplies; the proper officer may issue a show cause notice to require payment and propose a penalty equivalent to the specified amount, determine the amount after considering representations, and the person must pay the determined amount. The person is also liable for interest from collection until payment, has a right to a hearing on written request, and the proper officer must issue an order within one year, stating facts and reasons. Payments are adjustable against tax liability and any surplus is credited or refunded.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax collected but not paid requires immediate payment to Government, with interest, notice and hearing, and possible penalty.
Every person who has collected tax amounts and not paid them to the Government must forthwith pay those amounts irrespective of taxability of supplies; the proper officer may issue a show cause notice to require payment and propose a penalty equivalent to the specified amount, determine the amount after considering representations, and the person must pay the determined amount. The person is also liable for interest from collection until payment, has a right to a hearing on written request, and the proper officer must issue an order within one year, stating facts and reasons. Payments are adjustable against tax liability and any surplus is credited or refunded.
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