Service Tax – publication of names – rules and procedure not applicable in Delhi Commissionerate
The fact is that the Board is not taken seriously by its own Commissioners. You may request the Commissioners to be obedient, but they just don't bother. DDT 817 - 04.03.2008 and DDT 825 14.03.2008 had highlighted that the Delhi Service Tax Commissionerate has the names of alleged offenders. And this is patently illegal as per the Rules and the Board's instructions. DDT had noted that, “But brazen publication of names by the Government in its own website against the LAW is totally illegal and a government that shows scant respect for its own laws is an offender!” Do you think it had any effect? It did! The website now has some more names!
The release carried by the official website of the Delhi Commissionerate states brazenly,
The major demands issued by the Commissionerate includes an amount of service tax demanded are Ms M S decorators Private Limited for Rs. 11.20 crores , M/s MCM constructions & Real Estate Private Limited for Rs. 5.2 crores , M/s Odean Builders Private Limited for Rs. 9.50 crores , M/s S. Sony and Co. for Rs. 2.12 crores , M/s Space India Constructions for Rs. 0.55 crores , M/s United Builders for Rs. 0.65 crores .
In a case against M/s IES Made Easy, SCN has been issued for demanding service tax of Rs. 8 lakhs. The party was rendering commercial coaching services and had suppressed income (taxable service) amounting to Rs. 75 lakhs, thus evading service tax as well as income tax.
As per the Board's Circular No. 100/3/2008 – ST dated 12.3.2008, for the names to be published, the Commissioner has to send a proposal to the Chief Commissioner who should examine it and send the proposal to the Board, which will send it to a Committee and the Committee will send its recommendation to the Member (ST) and then the Board will take a decision on publication of names. And this will apply only in cases where the evasion is more than a Crore of Rupees and after the appeal period is over.
Either the Commissioner is not aware of the rules and procedure or he simply does not bother about the Board and its illogical directions.
In Service Tax, perhaps, one is treated guilty unless proved innocent!
Maybe the Board can now send another letter to his Chief Commissioner requesting him to request the Commissioner to show a little more consideration and respect for the Rules and Board instructions. Click on the link to see the list of offenders published by the Delhi Service Tax Commissioner. http://servicetaxdelhi.gov.in/readnews.asp?nid=97