TaxTMI 
TaxTMI 
2026 (5) TMI 1082
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....ed by the respondent authorities which renders the impugned order unsustainable in law and that; even the procedure adopted by the respondent to recover the dues demanded through the impugned order dated 14.01.2026 is illegal because the said recovery was made on 14.01.2026, that is, on the very day of the passing of the impugned order by debiting the input tax credit (for short-ITC) lying in the petitioner's Electronic Cash Ledger, which is in violation of Section 78 of the Act, as per which provision, no recovery can be made within a period of three months from the date of raising of the demand without recording of reasons in writing by the concerned proper officer, which, in the case in hand, was not done. 3. Learned State counsel submits that prior to raising the demand through order dated 14.01.2026, the petitioner was duly served a notice by way of affixation which is a valid mode of service as per Section 169 of the Act but he fairly concedes that before effecting recovery from the petitioner, within the period of three months from the date of passing of the impugned demand order, in terms of Section 78 of the Act, no reasons were recorded by the proper officer. 4.....
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....roneously refunded, or where input tax credit has been wrongly availed or utilised,-- (i) for any reason, other than the reason of fraud or any wilfulmisstatement or suppression of facts to evade tax, shall be equivalent to ten percent of tax due from such person or ten thousand rupees, whichever is higher; (ii) for the reason of fraud or any wilful-misstatement or suppression of facts to evade tax shall be equivalent to the tax due from such person. (6) The proper officer shall, after considering the representation, if any, made by the person chargeable with tax, determine the amount of tax, interest and penalty due from such person and issue an order. (7) The proper officer shall issue the order under sub-section (6) within twelve months from the date of issuance of notice specified in sub-section (2): Provided that where the proper officer is not able to issue the order within the specified period, the Commissioner, or an officer authorised by the Commissioner senior in rank to the proper officer but not below the rank of Joint Commissioner of Central Tax, may, having regard to the reasons for delay in issuance of the order under sub-....
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.... tax along with interest payable thereon under section 50 and a penalty equivalent to fifty per cent. of such tax within sixty days of communication of the order, and on doing so, all proceedings in respect of the said notice shall be deemed to be concluded. (10) Where the proper officer is of the opinion that the amount paid under clause (i) of sub-section (8) or clause (i) of sub-section (9) falls short of the amount actually payable, he shall proceed to issue the notice as provided for in subsection (1) in respect of such amount which falls short of the amount actually payable. (11) Notwithstanding anything contained in clause (i) or clause (ii) of sub-section (8), penalty under clause (i) of subsection (5) 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. (12) The provisions of this section shall be applicable for determination of tax pertaining to the Financial Year 2024- 25 onwards. Explanation 1.--For the purposes of this section,-- (i) the expression "all proceedings in respect of the said notice" shall n....
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....king it available on the common portal; or (e) by publication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carried on business or personally worked for gain; or (f) if none of the modes aforesaid is practicable, by affixing it in some conspicuous place at his last known place of business or residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board of the office of the concerned officer or authority who or which passed such decision or order or issued such summons or notice. (2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which it is tendered or published or a copy thereof is affixed in the manner provided in sub-section (1). (3) When such decision, order, summons, notice or any communication is sent by registered post or speed post, it shall be deemed to have been received by the addressee at the expiry of the period normally taken by such post in transit unless the contrary is proved." 6. Section 74A of the Act provides that before....