Service tax- show cause notice/penalty ?

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Rohit Sidana

Finance Controller

21 Points Posted on 25 October 2015

Dear Sir, Madam.

Kindly advice in below case, if Service tax department can issue Show cause notice or levy penalty :

Assessee was issued summons in June 2014 & further notice for enquiry u/s 14(3) was issued in April 2015, requesting for copies of service tax returns & calculation of liability.

Assessee paid all tax & interest in Oct 2015 & sent intimation to Service tax department that all tax & interest is paid before issuance of show cause notice. Assessee further requested not to levy penalty or issue show cause notice considering provisions of sec 73(3) & case laws of :

1.SHREE RAMA MULTI-TECH LTD. Versus COMMR. OF SERVICE TAX, AHMEDABAD [2012 (25) S.T.R. 596 (Tri. - Ahmd.)]

2. Bhoruka Aluminum Ltd. Vs Commissioner of Central Excise Mysore 2008-TIOL-1281-CESTAT-BANG

3. EDC Ltd. Vs CCE, Goa 2008-TIOL-277-CESTAT-MUM equivalent 2008(10) STR 254 (Tri.-Mumbai)

Service tax department is not saying that they will issue show cause letter & levy penalty. The query is – Can Service tax department now issue Show cause notice or levy penalty, considering above facts, when tax & interest is already deposited ?

Many thanks in advance for your kind advice & help.

Thanks

Rohit Sidana

B.Com( H) ;FCA ;DISA

Ph: 98180 55994

Replies (3)

Harshal Fifadra

Chartered Accountant

1249 Points Posted on 28 October 2015

Yes, the service tax department can issue a show cause notice for any issue which it may feel that service tax must have been evaded by the assessee. The fact that the assessee has made all the service tax payments along with interest does not absolve the service tax department to not issue a SCN. The department may issue a SCN for an issue like turnover not included in the returns, however, shown as a turnover in the financials.

Ashvin Bhanderi

ACCOUNTANT

84 Points Posted on 23 January 2016

Show cause notice received for non filing of service tax return for 01.10.14 to 31.03.15. i had not started business yet 31.03.15. So can i give reply to service tax department that i had not started business yet?