Section 11E: Assessment of tax and recovery of tax not levied or short levied or

11E. Assessment of tax and recovery of tax not levied or short levied or erroneously refunded.-302(1) Where due to any reason, any tax or charge has not been levied or short levied or where the officer of Inland Revenue not below the rank of Assistant Commissioner suspects on the basis of audit or otherwise that due to any reason a person has- (a) not paid or short paid due sales tax; (b) claimed input tax credit or refund which is not admissible;or (c) has obtained an amount of refund not due, the officer of Inland Revenue after issuing a show cause notice to the person shall pass an order to determine and recover the amount of tax unpaid or short paid, inadmissible input tax or refund, or unlawful refund obtained and shall also impose penalty and default surcharge in accordance with sections 33 and 34: Provided that this section shall not be applicable to the extent of proceedings initiated under section 37A of the Act. (2) For the purposes of sub-section (1), the officer of Inland Revenue may also disallow input tax on goods or services if the taxpayer is unable, without reasonable cause, to provide a receipt, or invoice or other record or evidence of the transaction or circumstances giving rise to such claim. (3) Where a tax or charge has not been levied under clause (a) of sub- section (1), the amount of tax shall be recovered as tax fraction of the value of supply.

Effective date: 1990-11-01

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