No. 97 / 8
Delhi, the 23rd August,
F. No. 137/85/2007-CX.4
(Central Board of Excise and Customs)
Subject:- Procedural issues in Service Tax-circular-reg.
Since the inception of the
levy of service tax vide Chapter V of the Finance Act, 1994 (hereinafter called
the Act) and rules made thereunder from time to time, a number of
circulars/clarifications/instructions have been issued, for clarifying the scope
of statutory provisions; providing legal interpretation of the provisions of the
Act, the rules and the notifications; and clarifying as well as prescribing the
procedures to be followed for administration of service tax. Over a period of
time, there have been significant changes in law and procedures relating to
service tax. While certain circulars/clarifications/ instructions have become
redundant and anachronistic, new issues have arisen on account of changes in law
and procedure. This circular aims to consolidate the procedural issues relating to service tax, including those relating
to availment and utilization of CENVAT credit. This circular supersedes
all previous circulars/clarifications/instructions
issued on these subjects. It is, however, clarified that this circular is
intended only to clarify the scope of the Act and the rules, and therefore, in
the event of any inadvertent inconsistency or contradiction between this
circular and the provisions of the Act or the rules, the latter shall prevail.
As per the provisions of
section 69 of the Act and rule 4 of the Service Tax Rules, 1994 (hereinafter
called the Rules), every person providing a taxable service and liable to pay
service tax is required to register with the Central Excise / Service Tax
department (hereinafter called the department).
Further, in a few cases liability to pay service tax has been shifted to
the service receiver or other specified person, in terms of section 68(2) of the
These cases are: -
insurer in case of service provided by insurance agent;
person making payment of freight in such cases where a goods transport agency
provides taxable service to a specified consignor and consignee;
asset management company or mutual fund, in case of service provided by a
distributor to them;
where the service is provided to a person in India by any person from a country
other than India; and
body corporate or a firm located in India receiving sponsorship service.
all these cases, the person liable to pay service tax shall be obliged to
register with the department.
The turnover limit, i.e., the aggregate value of taxable service for
threshold based exemption is, currently, Rs. 8 lakh in a year. However, a person
availing of this exemption is required (under section 69 of the Act, read with
notification no.26/2005-ST) to register with the department on achieving a
turnover of Rs 7 lakh in a financial year in respect of all taxable services
provided by him. The expression “aggregate value not exceeding the threshold
value of Rs 8 lakh” has been defined in notification No. 6/2005-ST.
An ‘input service
distributor’ is an office or establishment of a manufacturer of excisable
goods or provider of taxable service. It receives tax paid invoices/bills of
input services procured (on which CENVAT credits can be taken) and distributes
such credits to its units providing taxable services or manufacturing excisable
goods. The distribution of credit is subject to the conditions that,- (a) the
credit distributed against an eligible document shall not exceed the amount of
service tax paid thereon, and (b) credit of service tax attributable to services
used in a unit either exclusively manufacturing exempted goods or exclusively
providing exempted services shall not be distributed. An input service
distributor is required (under section 69 of the Act, read with notification
no.26/2005-ST) to take a separate registration.
for registration is required to be made in Form ST-1 to the jurisdictional
superintendent of Central Excise/Service tax within 30 days of levy of service
tax on such service or, in case of an existing taxable service, within 30 days
of the commencement of provision of such service. A person providing more than
one taxable service is required to take only one single registration. He should
indicate all taxable services provided by him in Form ST-1.
Any person liable to pay service tax, who,-
provides taxable service from more than one premises;
(b) receives taxable services in more than one premises; or
(c) has more than one premises engaged in relation to such
seek centralised registration, provided he does centralised billing or maintains
centralised accounting in respect of such taxable services in a premises.
In certain cases the centralization can be at the zonal/regional level. In such case, each of such offices is to be registered
individually. Such registrations are to be granted by the jurisdictional
Commissioner where such offices/establishments are located.
The registration certificate will be granted by the department, in Form
ST-2, within seven days of filing of an application complete and properly filled
up. In case registration certificate is not issued within seven days, the
registration is deemed to have been granted. Registration No., also known as
‘Service Tax Code (STC)’ is a fifteen digit PAN based number. First 10
digits of this number are the same as the PAN of such person. Next two digits
are ‘ST’. Next three digits are serial numbers indicating the number of
registrations taken by the service taxpayer against a common PAN. In addition to
PAN, another number, namely, ‘premises code’ is also given (mentioned at Sl.
No. 5 of the Form ST-2). This number indicates the code of the jurisdictional
Commissionerate, division, range and Sl. No. within the range. This number is
issued for easy identification of location of registration of the service
In case an existing registrant wishes to add any new premises to the
centralized registration or wishes to add new taxable services in his
registration certificate or amend it as regards any other details, he may
provide such details to the jurisdictional Superintendent in Form ST-1,
indicating only the amendment/rectification required to be made in the
registration certificate, along with a copy of the original registration
certificate. In case the changes relate to deletion of any premises or taxable
service, the registrant may file an intimation on plain paper along with copy of
the registration certificate.
Payment of service tax:
In terms of rule 6 of the Rules read with section 68 of the Act, the
service tax is required to be paid on monthly basis by all service taxpayers,
other than individuals or proprietary/partnership concerns who are required to
pay service tax on quarterly basis. Service tax liability for a particular month
or quarter is to be discharged on the payments towards the value of taxable
service received during that month or quarter, as the case may be. It is to be
deposited by the 5th day
of the month following the month or quarter for which service tax is paid.
However, for the month/quarter ending March, the payment is required to
be made by the 31st March itself by all taxpayers.
e-payment of service tax: The
service tax can be paid electronically. For this, the service taxpayer should
have an account in any branch of the designated banks. For availing of the
facility of e-payment, the service taxpayer shall obtain a user-ID and password
from the designated bank in which he has the account. For e-payment, the service
taxpayer should log on to the web-site of the bank with his user-ID and
password. He should then choose the
option of e-payment of service tax. On choosing this option, the service
taxpayer would be guided to the e-payment portal wherein he would fill the
challan for payment of service tax and would authorize payment of service tax by
way of debit to his account. Thereafter, a copy of the acknowledgement would be
generated for the records of the service taxpayer. Subsequently, the bank would
generate copies of challan and send a copy each to the Pay and Accounts Officer
(PAO) and the department.
Mandatory e-payment of service tax
of service tax has been made mandatory w.e.f . 1.10.2006, (vide sub-rule (2) of
rule 6 of the Rules), for all assessees who have paid (in cash plus through
CENVAT Credit) a service tax amounting
to Rs. 50 lakh or more in the preceding financial year or in the current
financial year. The latter type of service taxpayers shall make any further
payment of service tax in cash (i.e. other than through credit), only through
In case a taxpayer faces any procedural problems, he may contact the
jurisdictional service tax/ central excise office or the jurisdictional
Commissioner, who would advise and extend all possible help to the taxpayers to
comply with the requirement of mandatory e-payment. At the same time, such
taxpayers should expeditiously complete the procedural formalities required at
their end for availing of internet banking facility from designated banks and
complying with this requirement.
For a person providing taxable service from more than one premises and
where each of such premises has been separately registered with the department,
the criterion of Rs 50 lakh would apply to each of the registered premises
individually in view of its separate legal identity. The same procedure would
apply to a person paying service tax on taxable services received by him.
However, in case of a Large Taxpayer (those taxpayers associated with LTU), the
cumulative service tax paid by all registered premises will be taken into
account for working out the of service tax amount of Rs 50 lakh.
Similarly, if a person providing taxable service also receives taxable
services on which he is liable to pay service tax and has a single registered
premises, the service tax amount of Rs 50 lakh would be the total amount of
service tax paid by him.
of invoices, bills, challans, consignment notes and other documents:
In terms of the provisions of rules 4A and 4B of the Rules, every
taxable service provider is required to issue a document (i.e. invoice, bill or
challan) within 14 days from either the date of completion of provision of
service or receipt of any service charges (whichever is earlier).
Such document should be serially numbered and should contain the name,
address of the service provider and the service receiver, description,
classification and value of service provided and service tax payable thereon.
For complying with the requirements of CENVAT Credit Rules, (i.e., to facilitate
availment of credit by the recipient of taxable service), the amount of
‘education cess’ and ‘secondary and higher education cess’ should be
shown separately on the invoice. Further, STC
no./registration no. of the service provider should also be mentioned on the
invoice for this purpose.
service distributor is also required to issue such a document in favour of the
recipient of the credit so distributed.
This document should also be serially numbered and should give the
details of the invoices under which the taxable service has been received and
the name, address and registration no. of the input service distributor as well
as of the recipient of the credit. The
amount of credit distributed shall also be mentioned.
service providers providing ‘banking & other financial services’,
certain relaxations are available. For
such service providers, the invoice need not be serially numbered. They are also
exempted from mentioning the address of the service receiver. Similar dispensation is available for input service
distributors of such type of service providers.
of taxable service of transport of goods by road (i.e. goods transport agency)
the invoice/bill/challan should, in addition to the general information required
(i.e. as mentioned in para 5.1), also contain the consignment note number, date
and gross weight of the consignment.
of the Rules prescribes that the goods transport agency shall issue a
consignment note, which would be serially numbered and would contain the names
of the consignor and consignee, the vehicle registration number, details of
goods transported, details of place of origin and destination, and the person
(consignor / consignee/goods transport agency) liable to pay service tax.
In case of less container load (LCL) cargo, where the goods transport
agent is not aware of the vehicle registration number at the time when he
receives the goods and issues consignment note, he may mention the
non-availability of vehicle registration number on the copy issued to the
consignor. However, after he comes
to know about the vehicle registration number, he should mention the same,
consignment note-wise, in the records maintained by him and produce the same in
case of verification. Similarly, in case of trans-shipment of goods en-route
(i.e. where the goods covered under a consignment note are shifted from one
vehicle to another), the records of registration numbers of the vehicles
carrying such goods under a consignment note must be recorded as soon as the
said information is available to the goods transport agent. These procedural
relaxations are provided for such special cases only and, in all other cases,
mention of vehicle registration number on the consignment note, at the time of
its issue would continue to remain a mandatory requirement.
Service tax return
The service tax return is required to be filed under Section 70 of
the Act read with rule 7 of the Rules, by 'any person liable to pay the service
tax'. This return is required to be
filed on a half yearly basis, in Form ST-3. For the periods from April to
September and October to March, it must be filed by the 25th October
and the 25th April respectively. Further, ‘Input Service
Distributor’ is also required to file this return. Persons who are not liable to pay service tax
(because of an exemption including turnover based exemption), are not
required to file ST-3 return.
single service tax return should be filed (in Form ST-3) in respect of all
taxable services provided by an assessee. Detailed
instructions for filling the return are given in the return form itself.
e-filing of return- The
service tax return can be filed electronically after logging into the website www.servicetaxefiling.com.
For this purpose, the assessee shall obtain user-ID and log-in password from the
department. A simple application
may be made to the jurisdictional Central Excise Officer, giving details of STC
no., and an ‘e-mail ID’. The department would communicate the ‘User ID’,
and ‘password’ along with technical details required for accessing the
relevant site and the procedure for making entries and other guidance as may be
necessary to the taxpayer by e-mail. While
filing the return electronically, the service taxpayer must file details as
contained in Form ST-3 and that of duty paying challans.
On submission of the completed return, a key number and an
acknowledgement would be generated by the system along with a copy of Form ST-3
and Challan, which could be printed by the service taxpayer for his records.
In case of any difficulty faced in e-filing, the service taxpayer may
send an e-mail to the address specified by the Commissioner, explaining the
difficulties and if a reply is not received within two days, he may send an
e-mail to email@example.com
6.4 Delay in filing of
return: The return is required to be filed by the stipulated date as
mentioned at para 6.1 above. Delay in filing of return attracts late fee.
The late fee presently prescribed vide rule 7C of the Rules, is
(a) Rs 500 for delay upto 15 days; (b) Rs 1000 for delay between 15 days
and 30 days; and (c) Rs 1000 plus Rs 100 per day beyond 30 days, till the filing
of return, not exceeding Rs 2000/-. To
avoid late fee, the taxpayer must ensure timely filing of return. In case of
returns filed late, the appropriate late fees should be paid at the time of
filing the return, without waiting for any communication or notice from the
department. Mere non-submission of evidence of payment of late fee along with
the return is, however, not a ground for refusal to allow filing of the return.
Filing of revised return: Rule 7B of the Rules prescribes that an
assessee can submit a revised return within 60 days of filing of original return
to rectify any mistake or omission. It
may be noted that in such cases where an assessee files a revised return, the
limitation period for initiating any action for demanding the service tax not
paid/ short paid/ not levied/short levied would be computed from the date of
filing of revised return.
Normally, under self assessment scheme, the service taxpayer assesses his
tax liability himself and pays the same. However, if a service taxpayer is not
in a position to determine the service tax liability, say, for the reason that
valuation or classification of taxable service or issue of admissibility of an
exemption notification cannot be determined (or any such other reason) at the
time of filing the return, he may opt for assessment of service tax on
provisional basis after obtaining an order from the jurisdictional Deputy
Commissioner/ Assistant Commissioner. The assessment shall be made in terms of
the said order and would continue to be provisional till the issue is finalized.
Upon finalization, there may be additional tax liability or refund.
In such cases, the taxpayer would have to either pay the differential
amount of tax with interest or claim refund, as the case may be.
With effect from 10.9.2004, under CENVAT Credit Rules, 2004, CENVAT
Credit across goods and services has been allowed. This circular deals only with
certain commonly raised issues relating to certain provisions of these rules
that relate to service tax credit. The following are the issues which have been
examined in this circular,-
ISSUE: Whether a manufacturer or taxable service provider having
credit balance in his account can utilize that credit for payment of service tax
on goods transport by road, as a consignor or as a consignee?
In terms of rule 3 (4) of the Rules, CENVAT credit can be utilized for the
any duty of excise payable on any final product;
service tax on any output
terms of the CENVAT Credit Rules, ‘output service’ means any taxable service
provided by the provider of taxable service to the service receiver. Further,
the definition of ‘provider of taxable service’ includes a person liable to
pay service tax. Therefore, reading the two definitions in conjunction, it is
clear that, to form ‘output service’, taxable service has to be actually
provided by the ‘provider of taxable service’. Even if due to a legal
fiction, a consignor or a consignee qualifies to fall under the definition of
‘a person liable to pay service tax’ (and consequently a ‘provider of
taxable service’), it cannot be said that he has actually provided any taxable
service. The service provided by a Goods Transport Agent (GTA) for which the
consignor or the consignee is made liable to pay service tax does not become an
‘output service’ for such consignor or the consignee. Therefore, the service
tax payable by the consignor or consignee on transportation of goods by road
cannot be paid through credit accumulated by such consignor or consignee. For
example, a manufacturer of steel sheets procures duty paid steel ingots as input
and avails CENVAT credit of the excise duty paid on ingots.
He clears his finished goods, i.e., steel sheets on payment of excise
duty and sends the same to his customer, engaging the service of a goods
transport agency. In this case, he
pays service tax on service received by him for transportation of the goods.
However, the input credit taken on steel ingots cannot be used for
payment of service tax applicable to goods transport agency.
The reason is that the such manufacturer ( consignor) is not the service
provider. The transport service is being provided by the ‘goods transport
agency’ and the excise assessee pays the service tax only for the
reason that the liability for payment of service tax has been shifted to the
service receiver. Accordingly,
the consignor or the consignee has to be pay service tax in cash on goods
transport by road service.
ISSUE: Whether a consignee can take credit of the amount paid as
service tax either by himself (as consignee) or by the consignor or by the Goods
COMMENTS: As per Rule 3 of the CENVAT Rules, 2004, CENVAT Credit
of, inter alia, service tax leviable and paid on any ‘input
services’ can be taken. The rule does not distinguish as to who (i.e. the GTA,
the consignor or the consignee himself) has paid the aforesaid tax. The only
condition required to be satisfied is that the consignee must be a manufacturer
of excisable goods or a provider of taxable service and the service must be in
the nature of ‘input service’ for such activity. In case of inward
transportation of inputs or capital goods, such service (being specifically
mentioned under the definition of ‘input service’) would qualify to be
called as ‘input service’ and, thus, the service tax paid (by any of the
persons mentioned above) on it would be eligible as credit to the receiver if he
is either a manufacturer of excisable goods or a provider of taxable service.
ISSUE: Up to what stage a manufacturer/consignor can take credit
on the service tax paid on goods transport by road?
COMMENTS: This issue has been examined in great detail by the
CESTAT in the case of M/s
Gujarat Ambuja Cements Ltd. vs CCE, Ludhiana [2007 (006) STR 0249 Tri-D]. In
this case, CESTAT has made the following observations:-
sale transport of manufactured goods is not an input for the
manufacturer/consignor. The two clauses in the definition of ‘input
services’ take care to circumscribe input credit by stating that service used
in relation to the clearance from the place of removal and service used for
outward transportation upto the place of removal are to be treated as input
service. The first clause does not mention transport service in particular. The
second clause restricts transport service credit upto the place of removal. When
these two clauses are read together, it becomes clear that transport service
credit cannot go beyond transport upto the place of removal. The two
clauses, the one dealing with general provision and other dealing with a
specific item, are not to be read disjunctively so as to bring about conflict to
defeat the laws’ scheme. The purpose of interpretation is to find harmony and
reconciliation among the various provisions”.
in the case of M/s Ultratech Cements Ltd vs CCE Bhavnagar
2007-TOIL-429-CESTAT-AHM, it was held that after the final products are cleared
from the place of removal, there will be no scope of subsequent use of service
to be treated as input. The above observations and views explain the scope of
the relevant provisions clearly, correctly and in accordance with the legal
provisions. In conclusion, a
manufacturer / consignor can take credit on the service tax paid on outward
transport of goods up to the place of removal and not beyond that.
In this connection, the phrase ‘place of removal’ needs determination
taking into account the facts of an individual case and the applicable
provisions. The phrase ‘place of removal’ has not been defined in CENVAT
Credit Rules. In terms of sub-rule (t) of rule 2 of the said rules, if any words
or expressions are used in the CENVAT Credit Rules, 2004 and are not defined
therein but are defined in the Central Excise Act, 1944 or the Finance Act,
1994, they shall have the same meaning for the CENVAT Credit Rules as assigned
to them in those Acts. The phrase ‘place of removal’ is defined under
section 4 of the Central Excise Act, 1944. It states that,-
a factory or any other place or premises of production or manufacture of
the excisable goods ;
a warehouse or any other place or premises wherein the excisable goods
have been permitted to be stored without payment of duty ;
depot, premises of a consignment agent or any other place or premises from where
the excisable goods are to be sold after their clearance from the factory;
from where such
goods are removed.”
is, therefore, clear that for
a manufacturer /consignor,
the eligibility to avail credit
of the service tax paid on the transportation during removal of excisable goods
would depend upon
the place of removal as per the definition.
In case of a factory gate sale, sale from a non-duty paid warehouse, or
from a duty paid depot (from where the excisable goods are
sold, after their clearance from the factory), the determination of the
‘place of removal’ does not pose much problem. However, there may be
situations where the manufacturer /consignor may claim that the sale has taken
place at the destination
point because in terms of the sale contract /agreement (i) the ownership of
goods and the property
in the goods remained with the seller of the goods till the delivery of the
goods in acceptable condition to the purchaser at his door step; (ii) the seller
bore the risk of loss of or damage to the goods during transit to the
destination; and (iii) the freight charges were an integral part of the price of
goods. In such cases, the credit of the service tax paid on the transportation
up to such place of sale would be admissible if it can be established by the
claimant of such credit that the sale and the transfer of property in goods (in
terms of the definition as under section 2 of the Central Excise Act, 1944 as
also in terms of the provisions under the Sale of Goods Act, 1930) occurred at
the said place.
8.3 A doubt has been raised regarding
admissibility of CENVAT credit on service tax paid in respect of mobile phones.
In the Service Tax Credit Rules, 2002, it was prescribed that credit of service
tax was admissible only on telephone connection installed in the business
premises. A clarification to this effect was also issued vide circular No.
59/8/2003-ST, dated 20.6.2003, in the context of the Service Tax Credit Rules,
2002. However, in the CENVAT Credit Rules, 2004 no such condition has been
prescribed. Therefore, w.e.f. 10.9.2004, credit of service tax paid in respect
of mobile telephone service is admissible, provided the mobile phone is used for
providing output service or used in or in relation to manufacture of finished
Input service distributor is an office or premises of the manufacturer or
taxable service provider which receives bills/invoices etc., of input services.
The input service distributor can distribute the eligible credit to any unit of
the manufacturer or any premises/office of taxable service provider.
Delay in payment of service tax
Delay in payment of service tax, including a part thereof, attracts
simple interest in terms of section 75 of the Act. The rate of interest is as
prescribed from time to time, in accordance with this section.
At present, the rate of interest is 13% per annum (notification No.
26/2004-ST, dated 10.9.2004).
Further, failure to pay service tax also attracts a penalty under Section
76 of the Act, which shall not be less than Rs 200 for every day during which
such failure continues or at the rate of 2% of such tax per month, which ever is
higher, starting with the first day after the due date till the date of actual
payment of the outstanding amount of service tax.
However, such penalty would not exceed the service tax payable.
Any amount recovered by any person as service tax
Any amount collected by a person as service tax from any other person,
even if it was not permissible in terms of the service tax law, is required to
be deposited with the Central Government. In
other words, no amount collected as service tax shall be retained by the person
who has collected such amount. Any delay in depositing such amount attracts
simple interest at the rate prescribed under section 73 B of the Act. At
present, the rate of interest is 13% per annum (notification No. 8/2006-ST,
The selective audit of service taxpayers and other assessees like input
service distributors, may be done by the jurisdictional central excise officer
(authorized for the purpose) or by an audit party deputed by the Comptroller and
Auditor General of India. Rule 5 of
the Rules makes it mandatory for every assessee to make available the records,
on demand, for inspection and examination to such authorized person/audit party.
Adjudication of cases
Section 73 of the Act deals with adjudication of cases of short-levy or
non-levy of service tax or service
tax short paid or not paid or erroneously refunded. For quick settlement of
disputes, this section prescribes that (i) in other cases involving fraud,
collusions, wilful misstatement and suppression of facts etc., the dispute could
be settled by making payment of the service tax amount specified in the notice
along with interest and penalty equal to 25% of service tax amount, within
thirty days of issue of show cause notice; (ii) and in any other case the person
chargeable to service tax, or to whom service tax has been erroneously refunded,
may make payment suo moto along with
interest, as applicable, and, consequently no Show Cause Notice will be served
in respect of the amount so paid.
Section 83A confers powers on the Central Excise Officer for adjudging a
penalty under the provisions of the said Act or the rules made there under.
Board has specified monetary limits for adjudication of cases under section 83A
of the said Act vide notification No. 30/2005- Service Tax dated 10th August,
2005. The monetary limits are as follows:
of service tax or CENVAT credit specified in a notice for the purpose of
adjudication under section 83A
Commissioner of Central Excise or Deputy Commissioner of Central Excise
exceeding Rs. 5 lakh
Commissioner of Central Excise
Rs. 5 lakh but not exceeding Rs. 20 lakh
Commissioner of Central Excise
Rs. 20 lakh but not exceeding Rs. 50 lakh
of Central Excise
monetary limits specified in the above tables for adjudication of service tax
cases are irrespective of whether or not such cases involve fraud,
collusion, wilful mis-statement, suppression of facts or contravention of any of
the provisions of the Act or the rules made thereunder with an intent to
evade payment of service tax and whether or not extended period has been
invoked. Cases not involving
non-payment of service tax or mis-utilization of CENVAT credit are to be
adjudicated by the Assistant Commissioner of Central Excise or Deputy
Commissioner of Central Excise.
Where different cases involving the same issue are due to be adjudicated
in a Commissionerate, all such cases may be adjudicated by the Central Excise
Officer competent to decide the case where the service tax or CENVAT credit
involved is of the highest amount.
For cases where the appellate authority remands the case for de-novo
adjudication, specifically mentioning the authority that has to adjudicate the
case, then such authority specified in the said appellate order should
adjudicate such cases. Where the appellate authority does not specifically
mention any adjudicating authority, it should be decided by the authority
competent in terms of the monetary limits mentioned in para 12.1.
Central Board of Excise & Customs (CBEC) has directed that in respect
of demands for an amount upto one thousand rupees towards short
payment/non-payment of service tax, if the service provider, on the default
being pointed out, pays the service tax along with interest within a period of
one month of the default in payment, the penalty should be waived, taking
recourse to the provisions under section 80 of the Act.
In other cases, i.e. where amount of service tax involved is
Rs one thousand, penal action prescribed under sections 76, 77 and 79 would be
Revision of orders:
The adjudication order passed by the officers subordinate to the
Commissioner of Service Tax can be revised by the Commissioner after causing
such inquiry as he deems fit, in terms of section 84 of the Act. The limitation
period for issuing such revisional order is two years from the date on which the
original order was passed. However, any issue
against which an appeal has been filed by the service taxpayer before
Commissioner (Appeals) cannot be revised. Thus, if an order deals with several
issues and the party files an appeal only in respect of a few issues, the
Commissioner may pass revisional order in respect of only such remaining issues
against which an appeal has not been filed by the party.
The principles of natural justice shall be followed while passing an
order in revision.
A service taxpayer aggrieved by any order passed by an adjudicating
authority lower than the Commissioner, may file an appeal before the
Commissioner (Appeals). Such appeal shall be filed within three months of the
communication of the original order to the party.
An appeal against an order of the Commissioner, including an order in
revision, and against an order of the Commissioner (Appeals) lies with the
Appellate Tribunal (CESTAT).
Other frequently asked question on procedural issues
For other frequently asked questions on procedural issues, the
information available on web-site www.cbec.gov.in
(FAQ in Service Tax) may be referred to.
Trade and field formations may be informed accordingly.
Hindi version will follow.