assessee to makesuo motu payment of unpaid or under-paid service tax along with interest

Indian Service Tax

Clarification

Point No.5

Section 73 is amended to allow the assessee to makesuo motu payment of unpaid or under-paid service tax along with interest and before issuing show cause notice by the authorities. However, this is not to apply to hitherto unpaid or under paid service tax before the finance bill receives the President's assent. Does it mean that this will not apply to the undisclosed taxable services or service tax before the date? A similar provision to restrict penalty to 25% is made applicable for prior date.

Also a clarification is "required that whether this will apply to all the cases or only those which are registered and returns filed.

Reply

Section 73 has been amended so as to provide forsuo motudropping of proceedings and non-issuance of show cause in a case where the amount of service tax short paid or not paid is paid voluntarily along with interest thereon by the assessee except cases covered under Section 73(1)(a) of Finance Act, 1994. These provisions will not apply to such cases where the duty becomes payable or ought to have been paid before the date on which Finance Bill, 2003, receives the assent of the President. In such cases, show cause notices are required to be issued.

Yes in cases covered under Section 78 where tax is paid by the assessee alongwith interest within thirty days of communication of adjudication order, the penalty would be 25% of the service tax involved, provided that said amount of penalty is also paid within the said period of 30 days.

Amendment made in Section 73 is not applicable to cases where registration is not obtained or returns are not filed. However, amendment made in Section 78 is applicable to cases where registration is not obtained and returns are not filed.

(Authority: RAC on 27/3/2003, Mumbai-II Commissionerate)

Cir. No. 13/7/96, Dated: 20/9/1996

Sub:- Service Tax - Revised format for notice under Section 70(2) and 77 of Finance Act, 1994.

I am directed to refer to Board's Service Tax Circular No. 8/2/96, dated 11/3/1996 prescribing proforma for notices required to be issued under Section 70(2) of Finance Act, 1994, The said proforma has been revised to incorporate penal provision of Section 77 of Finance Act, 1994 and will avoid extra work of issuance of another show cause notice for levy of penalty. A copy of the revised proforma is enclosed.

Office Of The Commissioner Of Central Excise (Service Tax Cell)

S. No. ________________

Dated ________________

Notice Under Section 70(2) And 77 Of Chapter V Of The Finance Act, 1994 (32 Of 1994)

To

M/s __________________

__________________

M/s ________________________ are holders of certificate of Registration Form ST 2 under Section 69 of the Finance Act, 1994 (32 of 1994) No. _____________ dated _________ and having undertaken to comply with the conditions prescribed in the Service Tax Rules, 1994.

And, whereas it appears that M/s ________________ have Contravened the provisions of Section 70 of Chapter V of the Finance Act, 1994 (32 of 1994) in as much as:

M/s. have failed to furnish quarterly return in the prescribed Form ST 3 to the Central Excise Officer within 15 days of the end of the preceding quarter i.e. _____________________

The said M/s.are also directed to furnish quarterly return in Form ST 3 within 30 days from the receipt of this notice and to show cause to the Assistant Commissioner Service Tax Cell _____________________

having his office at ______________ as to why the penalty should not be imposed upon them under the provision of Section 77 of Chapter V of the Finance Act, 1994 (32 of 1994) for contravention of provisions of Section 70 of Chapter V of the Finance Act, 1994 (32 of 1994) for every day during which the failure continues.

The said M/s. _______________________ are further directed to produce at the time of showing cause all the evidence upon which they intend to rely upon in support of their defence.

M/s __________________________ are also required to state whether they would like to avail of the opportunity to be heard in person before the case is adjudicated. If no mention is made in the written explanation, it would be presumed that they do not desire a personal hearing.

If no cause is shown against the action proposed to be taken within 30 days of the receipt of the notice or they do not appear before the adjudicating officer when the case is posted for hearing, the case will be decidedex-parteon its own merits.

This show cause notice is issued without prejudice to any other action that may be taken against the recipients of the notice or any other persons concerned with the act, commissions as mentioned in this notice or any other law for the time being in force in India.

Superintendent (Service Tax)