seeks to amend Section 73 of the said Act so as to provide forsuo motudropping of proceeding

Indian Service Tax

Show Cause Notice

Note:-As per Section 79, failure to comply with Notice attracts a penalty of not less than 10% but not more than 50% of the amount of Service Tax. This is in addition to any Service Tax and interest, if any.

Clause 151 (d) of Finance Bill, 2003 seeks to amend Section 73 of the said Act so as to provide forsuo motudropping of proceeding and non-issuance-of show cause notice in a case where the amount of service tax short-paid or not paid, is paid voluntarily along with interest thereon by the assessee within one year, except cases involving mis-statement or suppression of facts.

The Department can recover the Service Tax relating to a period upto five years in a situation where the Central Excise Officer has reason to believe that by reason of omission or failure on the part of the assessee, to make a return under Section 70 for any prescribed period to disclose wholly and truly all material facts necessary for his assessment for any prescribed period, the value of taxable service for that prescribed period has escaped assessment or has been under-assessed.