Time limit for reply to Show-cause notice
WE received this mail from a Service Tax assessee -
I am in receipt of a show-cause notice demanding Service Tax and seeking imposition of penalty and interest. The SCN contains the following paragraph towards the end –
“XX. If no cause is shown against the action proposed to be taken within 30 days from the receipt of this notice or if they fail to appear before the adjudicating authority when the case is posted for hearing, the case will be decided ex-parte on the basis of the evidence available on record.”
Incidentally, I am aware that in terms of section 33A of the Central Excise Act, 1944 as applicable to Service Tax matters, the adjudicating authority can (and is required to) in the matter of personal hearing grant me an adjournment for three times during the proceedings.
So, I fail to understand as to how the show-cause notice can threaten me with dire consequences of the matter being decided ex-parte if I do not appear for the hearing.
Similarly, the requirement of me showing “cause” within thirty days is apparently without any legal sanction. However, I find that the CBEC in its website http://cbec.gov.in/info-act/s-tax/service_tax.htm mentions the following -
“5. Adjudication - Departmental action against an assessee starts with a Show Cause Notice by the department. Normally thirty days time is given to reply to the Show Cause Notice.”
Admittedly, even I am eager to ease the burden of the show cause notice from my shoulders and ensure that the same is decided as soon as possible.
However, when I was unable to file a reply to the SCN within the “directed period”, I was asked by the department to seek an extension for filing the same. I find this a pressure tactic. Moreover, there is nothing in the law which requires me to seek such an “extension” and which to the best of my knowledge would be a discretionary power that would be exercised by the adjudicating authority. Assuming that the adjudicating authority does not allow me an extension to file a reply can I treat it as an appealable order?
I also find that the provisions of 73 of the Finance Act, 1994 do not lay down that the adjudicating authority is required to determine the amount of tax (where it is possible to do so) within a period of six months/one year as is the requirement in section 11A of the CEA, 1944.
Last but not the least, the Citizens Charter brought out by the CBEC mentions the following –
“OUR COMMITMENT
We shall strive to:
+ carry out our tasks with:
- courtesy and understanding ”
Hope the CBEC responds positively.