Service Tax – Powers of adjudications
Précis writing was once upon a time, part of the test for becoming a civil servant and may be that is the reason why communications from the bureaucrats used to be precise.( Do I sound ancient?) Yesterday DDT had told you about the notification regarding the powers of adjudication under Service Tax. Board had also issued a circular explaining the notification. The table of powers of adjudication are reproduced twice in the circular. Board clarifies that
1. the monetary limits specified in the Tables for adjudication of service tax cases shall be irrespective of whether or not such cases involve fraud, collusion, willful mis-statement, suppression of facts or contravention of any of the provisions of the Act or the rules
2. Those cases where there is no alleged failure to pay or evasion/avoidance of service tax or utilization of CENVAT credit shall be adjudicated by the Assistant Commissioner of Central Excise or Deputy Commissioner of Central Excise. (Is avoidance of tax a crime?)
3. Notice to show cause shall be approved in writing and signed by the Central Excise Officer competent to adjudicate the notice.
4. Where simultaneously 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. (How will they know this and who will monitor this? Should an Assistant Commissioner before adjudicating a case ask his Commissioner whether any such case is pending in the Commissionerate)
5. 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 the authority who has to adjudicate the case, then it should be decided by the authority who passed the said remanded order. The monetary limits will not be applicable in such cases.
6. All pending notices shall be disposed of in terms of this Circular. However, in those cases where the personal hearing has been completed, orders will be passed by the adjudicating authority before whom the hearing has been held. Such orders should normally be issued within a month of the date of completion of the personal hearing. (Incidentally why can’t departmental adjudicators decide the case immediately after hearing – on the same day when Tribunals and Courts can do it?)
CIRCULAR NO. , Dated: August 10, 2005