Demands and Recovery – CA Final IDT Study Material is designed strictly as per the latest syllabus and exam pattern.
Demands and Recovery – CA Final IDT Study Material
Question 1.
Everest Technologies Private Limited has been issued a show cause notice (SCN) on 31.01.2023 under section 73(1) of the CGST Act, 2017 on account of short payment of tax during the period between 01.07.2019 and 31.12.2019. Everest Technologies Private Limited contends that the show cause notice issued to it is time-barred in law.
You are required to examine the technical veracity of the contention of Everest Technologies Private Limited.
If in the above case SCN is issued under section 74(1) of the CGST Act, 2017, what is the last date by which SCN can be issued? [MTP, May 18, 6 Marks]
Answer:
ISSUE OF SCN
| NATURE OF CASE | TIME FOR ISSUANCE OF NOTICE | TIME FOR ISSUANCE OF ORDER |
| 1. Normal Cases [Section 73(1)] | Within 2 years and 9 months from the due date of filing Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund | Within 3 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund |
| 2. Fraud Cases [Section 74(1)] | Within 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund | Within 5 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund |
I. The SCN has been issued for the period between 01.07.2019 to 31.12.2019 which falls in the financial year (FY) 2019-20. Due date for furnishing annual return for the FY 2019-20 is 31.12.2020 and 3 years’ period from due date of filing annual return lapses on 31.12.2023. Thus, SCN under section 73(1) ought to have been issued latest by 30.09.2023. Since in the given case, the notice has been issued on 31.01.2023, notice is not time-barred.
II. The 5 years’ period from due date of filing annual return lapses on 31.12.2025. Thus, SCN under section 74(1) ought to have been issued latest by 30.06.2025.
Question 2.
Mr. X, registered under GST Act, had made short payment of GST for the month of July 2020. He does not want a show cause notice to be served on him by proper officer. Advice Mr. X, if :
(i) Short payment of tax is on account of reasons other than fraud
(ii) Short payment of tax is on account of fraud. [Nov 2018, Old, 4 Marks]
Answer:
(i) Short payment of tax is on account of reasons other than fraud
As per section 73 of the CGST Act, 2017, the show cause notice will not be issued by the proper officer, if Mr. X pays the amount of tax short paid along with interest payable thereon on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer, before the service of notice and inform the proper officer in writing of such payment.
(ii) Short payment of tax is on account of fraud
As per section 74 of the CGST Act, 2017, the show cause notice will not be issued by the proper officer, if Mr. X pays the amount of tax short paid along with interest payable thereon and a penalty equal to 15% of such tax on the basis of his own ascertainment of such tax or the tax as ascertained by the proper officer, before the service of notice and inform the proper officer in writing of such payment.
Examiner’s Comment
Some examinees failed to highlight substantial points that for averting the issuance of show cause notice, under section 73 of the CGST Act, 2017. Interest also needs to be paid along with the amount of tax short period before the service of notice and under Section 74, interest and penalty equal to 15% of tax short period also need to be paid along with the amount of such tax before the service of notice.
Question 3.
A taxpayer has suppressed certain facts resulting in short payment of tax. The mistake is pointed out by the Department, but no Show-Cause Notice (SCN) has been issued. As per the taxpayer, suppression is accepted at, ₹ 12,00,000 and he agrees that the suppression has taken place in the month of January, 2019. He clears the dues on 20th April, 2019. However, the Department, on verification, identifies additional suppression of ₹ 2,00,000 in the same month of January, 2019. SCN is issued and the taxpayer represents before the proper officer, which results into an adverse order against the taxpayer. The order is passed on 25.05.2019 and the taxpayer complies with the adverse adjudication order on 27.06.2019.
Determine the tax, interest and penalty payable at each stage. [Nov 2019, 5 Marks]
Answer:
Note:
In the given question, suppression accepted at ₹ 12 lakh may be assumed to be
- Alternative 1: the value
- Alternative 2: the tax amount.
Further, where the amount of ₹ 12 lakh is assumed to be the value of suppression, rate for tax payable would also need to be assumed.
Further, as per explanation 2 to section 74 of the CGST Act, 2017, the expression “suppression” means non-declaration of facts or information which a taxable person is required to declare in the return, statement, report or any other document furnished under this Act or the rules made thereunder, or failure to furnish any information on being asked for, in writing, by the proper officer.
Therefore, the question can be answered
Alter 1
by assuming that the information has been suppressed in the return/statement/ report filed IN the month of January (interest would become payable from 21st January in this case)
Alter 2
by assuming that suppression activity has taken place in January and the same has been reported in the return/statement/report filed IN the month of February (interest would become payable from 21 st February in this case).
In view of the above assumptions, following alternative answers are possible:
Alternative 1- Where amount of ₹ 12 lakh is assumed to be the value of suppression and tax rate assumed to be 18% (Any other tax rate may also be assumed. Answer will change accordingly.)
Tax, interest and penalty payable before the issue of the SCN:
In case of short payment of tax by reason of suppression of facts, if the taxpayer pays such short-paid tax and applicable interest before the issuance of show cause notice, penalty equal to 15% of such tax is payable.
Value suppressed = ₹ 12,00,000 Tax @ 18% = ₹ 2,16,000
Calculation of Interest
= ₹ 2,16,000 × 18% × 90/365 = ₹ 9,587 (rounded off) [From 21st January to 20th April] (It has been assumed that the information has been suppressed in the return/statement/report filed in the month of January and thus, interest would become payable from 21st January in this case.)
OR
= ₹ 2,16,000 × 18% × 59/365 = ₹ 6,285 (rounded off) [From 21st February to 20th April] (It has been assumed that suppression activity has taken place in January and the same has been reported in the return/statement/report filed in the month of February and thus, interest would become payable from 21st February in this case.)
Penalty = ₹ 2,16,000 × 15% = ₹ 32,400
Tax, interest and penalty payable after the adjudication order:
In case of short payment of tax by reason of suppression of facts, if the taxpayer pays such short-paid tax and applicable interest after 30 days of communication of the adjudication order penalty equal to 100% of such tax is payable.
Value suppressed = ₹ 2,00,000 Tax @ 18% = ₹ 36,000
Calculation of Interest
Interest = ₹ 36,000 × 18% × 158/365 = ₹ 2,805 (rounded off) [From 21st January to 27th June] (It has been assumed that the information has been suppressed in the return/statement/report filed in the month of January and thus, interest would become payable from 21st January in this case)
OR
Interest = ₹ 36,000 × 18% × 127/365 = ₹ 2,255 (rounded off) [From 21st February to 27th June] (It has been assumed that suppression activity has taken place in January and the same has been reported in the return/statement/report filed in the month of February and thus, interest would become payable from 21st February in this case.)
Penalty = ₹ 36,000 × 100% = 36,000
Alternative 2- Where amount of ₹ 12 lakh is assumed to be the suppressed amount of tax
Tax, interest and penalty payable before the issue of the SCN:
In case of short payment of tax by reason of suppression of facts, if the taxpayer pays such short-paid tax and applicable interest before the issuance of show cause notice, penalty equal to 15% of such tax is payable.
Tax payable – ₹ 12,00,000
Calculation of Interest
Interest = ₹ 12,00,000 × 18% × 90/365 = ₹ 53,260 (rounded off) [From 21st January to 20th April] (It has been assumed that the information has been suppressed in the return/statement/ report filed in the month of January and thus, interest would become payable from 21st January in this case.)
OR
= ₹ 12,00,000 × 18% × 59/365 = ₹ 34,915 (rounded off) [From 21st February to 20th April] (It has been assumed that suppression activity has taken place in January and the same has been reported in the return/statement/report filed in the month of February and thus, interest would become payable from 21st February in this case.)
Penalty = ₹ 12,00,000 × 15% = ₹ 1,80,000
Tax, interest and penalty payable after the adjudication order:
In case of short payment of tax by reason of suppression of facts, if the taxpayer pays such short-paid tax and applicable interest after 30 days of communication of the adjudication order penalty equal to 100% of such tax is payable.
Tax payable = ₹ 2,00,000 Calculation of Interest
Interest = ₹ 2,00,000 × 18% × 158/365 = ₹ 15,584 (rounded off) [From 21st January to 27th June] (It has been assumed that the information has been suppressed in the return/statement/ report filed in the month of January and thus, interest would become payable from 21st January in this case.)
OR
Interest = ₹ 12,00,000 × 18% × 127/365 = ₹ 12,526 (rounded off) [From 21st February to 27th June] (It has been assumed that suppression activity has taken place in January and the same has been reported in the return/statement/report filed in the month of February and thus, interest would become payable from 21st February in this case.)
Penalty = ₹ 2,00,000
Question 4.
Inoba Bhave is engaged in supply of taxable services. He supplies some services in the month of April and collects IGST of ₹ 15,50,000 on said supply on 18th April. However, he fails to pay the tax so collected within 30 days from the due date of payment of such tax.
No Show Cause Notice (SCN) has been issued to him so far. Inoba Bhave decides to discharge his tax liability, before the SCN is issued to him. He is of the view that no penalty is leviable if the payment of tax is made before issue of SCN.
Therefore, he self-assesses his tax liability at ₹ 15,50,000 and pays the same on 26th June. Determine the interest and penalty, if any, payable by Inoba Bhave. [RTP May 2020]
Answer:
Calculation of Interest:
Due date for payment of tax collected on 18th April is 20th May. However, since tax is actually paid on 26th June, interest @18% p.a. is payable for the period for which the tax remains unpaid [37 days] in terms of section 50 of CGST Act, 2017 read with Notification No. 13/2017 CT dated 28.06.2017.
Amount of interest = ₹ 15,50,000 × 18% × 37/365 = ₹ 28,282 (rounded off).
Calculation of Penalty:
As per section 73(11) of the CGST Act, 2017, where self-assessed tax/any amount collected as tax is not paid within 30 days from due date of payment of tax, then, inter alia, option to pay such tax before issuance of SCN to avoid penalty, is not available.
Consequently, penalty equivalent to
- 10% of tax, viz., ₹ 1,55,500 or
- ₹ 10,000, whichever is higher, is payable in terms of section 73(9) of the CGST Act, 2017. Therefore, penalty of ₹ 1,55,500 will have to be paid by Inoba Bhave.
Question 5.
Richmond has self-assessed tax liability under IGST Act, 2017, as ₹ 80,000. He fails to pay the tax within 30 days from the due date of payment of such tax.
Determine the interest and penalty payable by him explaining the provisions of law, with the following particulars available from his records:
Date of collection of tax 18th December, 2019, Date of payment of tax 26th February, 2020.
No Show Cause Notice (SCN) has been issued to him so far, while he intends to discharge his liability, even before it is issued to him, on the assumption that no penalty is leviable on him as payment is made before issue of SCN. [MTP, Nov. 18, 4 Marks]
Answer:
Calculation of Interest:
Due date for payment of tax collected on 18.12.2019 is 20.01.2020. However, since tax is actually paid on 26.02.2020, interest @18% p.a. is payable for the period for which the tax remains unpaid [37 days] in terms of section 50 of CGST Act, 2017.
Amount of interest = ₹ 80,000 × 18% × 37/365 = ₹ 1,460 (rounded off)
Calculation of Penalty:
As per section 73(11) of CGST Act, 2017, where self-assessed tax/any amount collected as tax is not paid within 30 days from due date of payment of tax, then, inter alia, option to pay such tax before issuance of SCN to avoid penalty, is not available.
Consequently, penalty equivalent to
- 10% of tax, viz., ₹ 8,000, or
- ₹ 10,000,
whichever is higher, is payable in terms of section 73(9) of CGST Act, 2017. Therefore, penalty of ₹ 10,000 will have to be paid by Richmond.
Question 6.
Discuss briefly the procedure for issue of adjudication order under section 74(9) & (11) and the time limit for passing adjudication order under section 74(10) of the CGST Act, 2017. [May 2018, Old, 4 Marks]
Answer:
The procedure for issue of adjudication order [Section 74 of CGST Act, 2017] :-
Where a show cause notice/statement is issued to a person chargeable with tax, he may furnish a representation to the proper officer in his defence, if he is of the view that he is not so liable to pay whole/part of the amount mentioned in the show cause notice.
As per Section 74(9) of CGST Act, 2017 :- The proper officer after considering the representation, if any, made by the person chargeable with tax, pass an order determining the amount of tax, interest and penalty due from such person [Section 74(9)].
As per Section 74(11) of CGST Act, 2017 :- Where any person served with an adjudication order pays the tax along with interest payable thereon under section 50 and a penalty equivalent to 50% of such tax within 30 days of communication of the order, all proceedings in respect of the said notice shall be deemed to be concluded [Section 74(11)].
As per Section 74(10) of CGST Act, 2017 :- The proper officer shall issue the adjudication order within 5 years from the due date for furnishing of Annual Return for the financial year to which the tax not paid/short paid/input tax credit wrongly availed/utilised relates to or within 5 years from the date of erroneous refund.
Question 7.
Enlist the circumstances for which a show cause notice can be issued by the proper officer under section 73 of the CGST Act, 2017. Specify the time limit for issuance of such show cause notice as also the time period for issuance of order by the proper officer under section 73. [RTP, May 19]
Answer:
As per section 73 of the CGST Act, 2017, a show cause notice can be issued by the proper officer if it appears to him that:
- tax has not been paid; or
- tax has been short paid; or
- tax has been erroneously refunded; or
- input tax credit has been wrongly availed or utilized,
for any reason other than the reason of fraud or any wilful misstatement or suppression of facts to evade tax.
| NATURE OF CASE | TIME FOR ISSUANCE OF NOTICE | TIME FOR ISSUANCE OF ORDER |
| 1. Normal Cases [Section 73(1)] | Within 2 years and 9 months from the due date of filing Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund | Within 3 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund |
| 2. Fraud Cases [Section 74(1)] | Within 4 years and 6 months from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund | Within 5 years from the due date of filing of Annual Return for the Financial Year to which the demand pertains or from the date of erroneous refund |
Question 8.
Discuss briefly the time limit for passing adjudication order under section 74(10) of the CGST Act, 2017.
Answer:
As per section 74(10) of CGST Act, 2017: – The proper officer shall issue the adjudication order within 5 years from the due date for furnishing of Annual Return for the financial year to which the tax not paid/short paid/input tax credit wrongly availed/utilised relates to or within 5 years from the date of erroneous refund.
Question 9.
Rakesh has been issued a show cause notice (SCN) on 31.12.2021 under section 73(1) of the CGST Act, 2017 on account of short payment of tax during the period between 01.08.2017 and 01.01.2018. He has been given an opportunity of personal hearing on 15.01.2022.
Advice Rakesh as to what should be the written submissions in the reply to the show cause notice issued to him.
Answer:
The written submissions in reply to SCN issued to Rakesh are as follows:
i. The show cause notice (SCN) issued for normal period of limitation under section 73(1) of the CGST Act, 2017 is not sustainable.
ii. The SCN under section 73(1) of the CGST Act, 2017 can be issued at least 3 months prior to the time limit specified for issuance of order under section 73(10) of the CGST Act, 2017. The adjudication order under section 73(10) of the CGST Act, 2017 has to be issued within 3 years from the due date for furnishing of annual return for the financial year to which the short-paid tax relates to.
The due date for furnishing annual return for a financial year is on or before the 31st day of December following the end of such financial year [Section 44 of the CGST Act, 2017]. Thus, SCN under section 73(1) of the CGST Act, 2017 can be issued within 2 years and 9 months from the due date for furnishing of annual return for the financial year to which the short-paid tax relates to.
iii. The SCN has been issued for the period between 01.08.2017 to 01.01.2018 which falls in the financial year (FY) 2017-18. Due date for furnishing annual return for the FY 2017-18 is 31.12.2018 and 3 years’ period from due date of filing annual return lapses on 31.12.2021. Thus, SCN under section 73(1) ought to have been issued latest by 30.09.2021.
iv. Since the notice has been issued after 30.09.2021, the entire proceeding is barred by limitation and deemed to be concluded under section 75(10) of the CGST Act, 2017.
Question 10.
A show cause notice was issued demanding GST of ₹ 1,80,180 for the month of July, 2020 on 1st October, 2020. However, adjudicating authority after the personal hearing found that there was a typographical error while mentioning the amount of GST and he confirmed the demand for ₹ 10,80,180. Assessee seeks your advice.
What would be your advice if:
(a) Assessee comes to you after issue of order or
(b) A corrigendum revising the amount to ₹ 10,80,180 on 15th November, 2020, is issued. [Nov. 2018, Old, 4 Marks]
Answer:
Advice after issue of order:
It has been assumed that order demanding higher tax has been made, but the rectification of show cause notice
has not been done.
- As per section 75(7) of the CGST Act, 2017, inter alia, the amount of tax, Interest and penalty demanded in the order cannot exceed the amount specified in the notice.
- Since, in the given case, the amount of tax demanded in the order exceeds the amount of tax demanded in the show cause notice, the assessee can file an appeal against the adjudication order within the prescribed time limit.
Advice after issue of corrigendum
It has been assumed that corrigendum has been issued in respect of show cause notice.
Any authority, who has issued, inter alia, any notice, may rectify any error which is apparent on the face of record in such notice, inter alio., on its own motion within a period of 6 months from the date of issue of such notice except where the rectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission [Section 161 of the CGST Act, 2017].
In the given case, since the corrigendum has been issued to rectify a typographical error in the show cause notice, which is an error apparent on the face of the record, the rectification is correct in law. Further, being rectification of a clerical error, the time limit of 6 months will not apply.
Therefore, the assessee should reply to the show cause notice considering the revised amount of demand.
Examiner’s Comment
Many examinees provided wrong and vague answers simply stating that the amount of tax demanded in the order needs to be paid. They were not aware of the relevant statutory provisions.
Question 11.
On 05.07.2020, a show cause notice for ₹ 5,00,000 was issued to Mr. Vijay Kumar Sharma demanding short payment of GST of ₹ 4,50,000 for the month of January, 2020 and also interest of ₹ 50,000.
Mr. Sharma raised objections and after personal hearing on 30.08.2020, adjudicating authority passed the final order for ₹ 3,50,000 for GST, without any reference with regard to payment of interest.
Mr. Sharma deposited the tax of ₹ 3,50,000 on 02.09.2020 and informed the department on the same day. Subsequently, on 15.09.2020, department demanded payment of interest of ₹ 60,000 on GST of ₹ 3,50,000.
Mr. Vijay Kumar Sharma is not ready to pay any interest. His contention is that he is not liable for interest because he deposited all the amount specified in the final adjudication order.
Examine with a brief note the validity of the action taken by the Department with reference to provisions of the CGST Act, 2017. [May 2019, Old, 4 Marks]
Answer:
As per section 75 of the CGST Act, 2017: – The interest on the tax short paid has to be paid whether or not the same is specified in the order determining the tax liability.
Thus, in view of the same, Mr. Vijay Kumar Sharma will have to pay the interest even though the same is not specified in the final adjudication order. His contention that he is not liable for interest because he deposited the entire amount specified in the final adjudication order is not valid in law.
- However, the amount of interest demanded in the order cannot be in excess of the amount specified in the notice.
- Therefore, in the given case, Department cannot demand the interest in excess of the amount specified in the notice, which will be ₹ 50,000.
Question 12.
Subharti Enterprises collected GST on the goods supplied by it from its customers on the belief that said supply is taxable. However, later it discovered that goods supplied by it are exempt from GST.
The accountant of Subharti Enterprises advised it that the amount mistakenly collected by Subharti Enterprises representing as tax was not required to be deposited with Government. Subharti Enterprises has approached you for seeking the advice on the same. You are required to advise it elaborating the relevant provisions. [MTP, May 19/RTP, Nov. 18, 6 Marks]
Answer:
As per section 76 of the CGST Act, 2017 Every person who has collected from any other person any amount as representing the tax under this Act, and has not paid the said amount to the Government, shall forthwith pay the said amount to the Government, irrespective of whether the supplies in respect of which such amount was collected are taxable or not.
If registered person fails to do so (not followed above provision) then, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause as to why the said amount as specified in the notice, should not be paid by him to the Government and why a penalty equivalent to the amount specified in the notice should not be imposed on him under the provisions of this Act.
The proper officer shall, determine the amount due from such person and such person shall pay the amount so determined.
The person who has collected any amount as representing the tax, but not deposited the same with the Government shall in addition to paying the said amount determined by the proper officer shall also be liable to pay interest thereon. Interest is payable at the rate specified under section 50. Interest is payable from the date such amount was collected by him to the date such amount is paid by him to the Government.
The proper officer shall issue an order within 1 year [excluding the period of stay order] from the date of issue of the notice. The proper officer, in his order, shall set out the relevant facts and the basis of his decision.
Question 13.
A taxable person has mistakenly paid CGST and SGST for an inter-State supply. Subsequently, when he discovers the same, can he adjust the IGST liability against the wrongly paid CGST and SGST? [MTP, Nov. 19, 3 Marks]
Answer:
As per section 77 of CGST Act, 2017 A registered person who has paid the Central tax and State tax or, as the case may be, the Central tax and the Union territory tax on a transaction considered by him to be an intra-State supply, but which is subsequently held to be an inter¬state supply, shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed.
The IGST liability cannot be adjusted against the CGST and SGST wrongly paid.
Question 14.
Briefly discuss the modes of recovery of tax available to the proper officer. [MTP, Nov. 19, 4 Marks]
Answer:
As per Section 79 of CGST Act :- The proper officer may recover the dues in following manner:
(a) Deduction of dues from the amount owned by the tax authorities payable to such person;
(b) Recovery by way of detaining and selling any goods belonging to such person;
(c) Recovery from other person, from whom money is due or may become due to such person or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central or a State Government;
(d) Distrain any movable or immovable property belonging to such person, until the amount payable is paid. If the dues not paid within 30 days, the said property is to be sold and with the proceeds of such sale the amount payable and cost of sale shall be recovered;
(e) Through the Collector of the district in which such person owns any property or resides or carries on his business, as if it was an arrear of land revenue;
(f) By way of an application to the appropriate Magistrate who in turn shall proceed to recover the amount as if it were a fine imposed by him;
(g) By enforcing the bond/instrument executed under this Act or any rules or regulations made thereunder;
(h) CGST arrears can be recovered as an arrear of SGST and vice versa.
Question 15.
Explain the process of provisional attachment to protect revenue?
Answer:
Provisional Attachment [Section 83 of CGST Act, 2017]
SEC. 83(1): Where during the pendency of any proceedings under,
- Best Judgment Assessment for non-filers of return (Sec. 62) or
- Best Judgment Assessment for unregistered person (Sec. 63) or
- Summary Assessment in special cases (Sec. 64) or
- Inspection, Search, Seizure (Sec. 67) or
- SCN and DO for a cases other than fraud etc. (Sec. 73) or
- SCN and DO for a cases of fraud etc. (Sec. 74)
the Commissioner is of the opinion that for the purpose of protecting the interest of the Government revenue, it is necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to the taxable person in such manner as may be prescribed.
SEC. 83(2): Every such provisional attachment shall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (1).
Rule 159 Provisional attachment of property –
(1) Where the Commissioner decides to attach any property, including bank account in accordance with the provisions of section 83, he shall pass an order in FORM GST DRC- 22 to that effect mentioning therein, the details of property which is attached.
(2) The Commissioner shall send a copy of the order of attachment to the concerned Revenue Authority or Transport Authority or any such Authority to place encumbrance on the said movable or immovable property, which shall be removed only on the written instructions from the Commissioner to that effect.
(3) Where the property attached is of perishable or hazardous nature, and if the taxable person pays an amount equivalent to the market price of such property or the amount that is or may become payable by the taxable person, whichever is lower, then such property shall be released forthwith, by an order in FORM GST DRC-23, on proof of payment.
(4) Where the taxable person fails to pay the amount referred to in sub-rule (3) in respect of the said property of perishable or hazardous nature, the Commissioner may dispose of such property and the amount realized thereby shall be adjusted against the tax, interest, penalty, fee or any other amount payable by the taxable person.