Section 73 - Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other than fraud or any wilfulmisstatement or suppression of facts of CGST ACT, 2017


              73. (1) Where it appears to the proper officer that any tax has not been paid or short
paid or erroneously refunded, or where input tax credit has been wrongly availed or utilised
for any reason, other than the reason of fraud or any wilful-misstatement or suppression of
facts to evade tax, he shall serve notice on the person chargeable with tax which has not been
so paid or which has been so short paid or to whom the refund has erroneously been made,
or who has wrongly availed or utilised input tax credit, requiring him to show cause as to why
he should not pay the amount specified in the notice along with interest payable thereon
under section 50 and a penalty leviable under the provisions of this Act or the rules made
thereunder.
                    (2) The proper officer shall issue the notice under sub-section (1) at least three months
prior to the time limit specified in sub-section (10) for issuance of order.
                    (3) Where a notice has been issued for any period under sub-section (1), the proper
officer may serve a statement, containing the details of tax not paid or short paid or erroneously
refunded or input tax credit wrongly availed or utilised for such periods other than those
covered under sub-section (1), on the person chargeable with tax.
                    (4) The service of such statement shall be deemed to be service of notice on such
person under sub-section (1), subject to the condition that the grounds relied upon for such
tax periods other than those covered under sub-section (1) are the same as are mentioned in
the earlier notice.
                     (5) The person chargeable with tax may, before service of notice under sub-section (1)
or, as the case may be, the statement under sub-section (3), pay the amount of tax along with
interest payable thereon under section 50 on the basis of his own ascertainment of such tax
or the tax as ascertained by the proper officer and inform the proper officer in writing of such
payment.
                      (6) The proper officer, on receipt of such information, shall not serve any notice under
sub-section (1) or, as the case may be, the statement under sub-section (3), in respect of the
tax so paid or any penalty payable under the provisions of this Act or the rules made
thereunder.
                      (7) Where the proper officer is of the opinion that the amount paid under
sub-section (5) falls short of the amount actually payable, he shall proceed to issue the
notice as provided for in sub-section (1) in respect of such amount which falls short of the
amount actually payable.
                      (8) Where any person chargeable with tax under sub-section (1) or sub-section (3)
pays the said tax along with interest payable under section 50 within thirty days of issue of
show cause notice, no penalty shall be payable and all proceedings in respect of the said
notice shall be deemed to be concluded.
                       (9) The proper officer shall, after considering the representation, if any, made by
person chargeable with tax, determine the amount of tax, interest and a penalty equivalent to
ten per cent. of tax or ten thousand rupees, whichever is higher, due from such person and
issue an order.
                       (10) The proper officer shall issue the order under sub-section (9) within three years
from the due date for furnishing of annual return for the financial year to which the tax not
paid or short paid or input tax credit wrongly availed or utilised relates to or within three
years from the date of erroneous refund.
                       (11) Notwithstanding anything contained in sub-section (6) or sub-section (8), penalty
under sub-section (9) 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.

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