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Clarification reg. the provision of Section 73, 76 and 78 of Finance Act, 1994 and Section 11AC of the Central Excise Act, 1944 after amendments made vide Finance Act, 2015
|Date||:||03 Sep 2015|
|Department / Organisation||:||Dept. of Revenue|
|Name Of the Ministry||:||Ministry of Finance|
|Notification / Public Notice /Circular Number||:||F.No.137/46/2015-Service Tax/ New Delhi dt.18.08.2015|
Sub: Clarification reg. the provision of Section 73, 76 and 78 of Finance Act, 1994 and Section 11AC of the Central Excise Act, 1944 after amendments made vide Finance Act, 2015.
Issuance of a Show Cause Notice (SCN):
If an assessee pays the service tax/central excise duty, interest and penalty equal to 15% of the tax/duty, he can request for an informed waiver of a written SCN and the same can be oral in cases of extended period limitation, as the principals are equally applicable to SCNs issued under other statues as maintained in the case of the Commissioner of Customs, Mumbai versus Virgo Steels.
No order confiscating any goods or imposing any penalty shall be made, unless the owner of the goods is given a notice in writing, for making a representation in writing and a reasonable opportunity of being heard as provided in Section 124 of the Customs Act, 1962, where also the notice of representation made at the request of the person concerned can be oral. This provision also applies to Central Excise Act as well as Service Tax.
The asseessee may make payment of the tax, duty, interest of reduced penalty of 15% within 30 day period from the date of service of the notice and 30 day period can be computed from the date of receipt of a letter by the department in case he makes a request for waiver of a written SCN. There is no bar for making payment before 30 day period.
Conclusion of proceedings:
The conclusion of proceedings may be approved by an officer of DGCEI/Executive Commissionerate/Audit Commissionerate as the case may be. If multiple issues involving different monetary values arise from the same proceedings then the sum total involved in all the issues arising from the same proceedings should be considered for conclusion of the proceedings. The conclusion of the proceedings should invariably be intimated to the assessee in writing. There is no need to issue adjudication order. Further, there is no need to undertake review of such conclusion of proceedings.
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