By Puloma Dalal, Bakul B. Mody, Chartered Accountants
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3. Time limits for issue of SCN :
A major amendment was made under Service Tax, relating to
recovery of Service Tax not levied or short levied, not paid or short paid or
erroneously refunded whereby Provisions of S. 11A of Central Excise Act, 1944 (CEA)
have been incorporated in Service Tax law by amending S. 73 of the Act. The time
limit for issue of SCN under the amended S. 73(1) of the Act is as under :
(a) Within one year of the relevant date : Where
Service Tax has not been levied or paid or has been short levied or short paid
or erroneously refunded, AA is required to serve a notice on the person
chargeable with Service Tax which has not been paid or levied or short paid,
requiring him to show cause as to why he is not liable to pay the amount
specified in the SCN.
(b) Within five years of the relevant date : If any
Service Tax has not been levied or paid or has been short levied or short paid
or erroneously refunded under specified circumstances.
The extended period of 5 years can be invoked in terms of
proviso to S. 73(1) of the Act, if any Service Tax has not been levied or has
been short levied or short paid by reason of :
- any wilful mis-statement or
with an intent to evade payment of tax.
Hence existence of any of the circumstances specified above
is absolutely essential and a pre-requisite for invocation of extended period in
terms of proviso to S. 73(1) of the Act. The reasons for invoking the extended
period are required to be specified in the SCN.
