DEPARTMENTAL INSTRUCTIONS

 

Appointment of Director General (Service Tax)

 

The Central Board of Excise and Customs has appointed the Director General (Service Tax) as Central Excise Officer and invests him with all the powers to be exercised by him throughout the territory of India as are exercisable by the Chief Commissioner of Central Excise [vide Notification No. 46/98‑ST GSR 59(E) (F. No. 137/13/97‑CX.4), dated 28‑1‑1998 (appended as Annexure 1)].

 

Appointment of Officer under Rule 3 of Service Tax Rules, 1994

 

The Central Board of Excise and Customs has appointed the Central Excise Intelligence Officers as Central Excise Officer and invests him with all the powers to be exercised by him throughout the territory of India regarding any taxable service as are exercisable by Central Excise officer of corresponding rank [vide Notification No. 3/2004‑ST, dated 11‑3‑2004 (appended as Annexure VIII)].

 

Address of the Directorate of Service Tax

 

As per the Trade Notice No. 91/2000(ST), dated 28‑8‑2000 (vide Annexure II) issued by the Commissioner of Central Excise and Customs, Cochin I, w.e.f. 17‑8‑2000, the office of the Directorate of Service Tax, Mumbai has been shifted. The new address and telephone numbers are as under:

 

Director of Service Tax,

9th Floor, Piramal Chambers,

Jijibhoy Lane, Lalbagh, Parel,

Mumbai‑400021

Telephone No. 022‑ 4103585 DGST (Direct)

022‑4102584/4102586/4102589

Fax No. 022‑ 4102587 or 022‑ 4178515

Email: dstmbi@gnbom.global.net.in

Email: dgst@bom5.vsnl.net.in

 

Monetary limits and powers of adjudication of officers

 

The Central Board of Excise and Customs has issued Circular No. 75/5/ 2004‑ST, dated 3rd March, 2004 (appended as Annexure IX) in supersession of Circular No. Circular No. 30/1/2000, dated 5‑6‑2000 (appended as Annexure III) and Circular No. 11/5/96, dated 22‑4‑1996 and now it has been been decided by the Board that adjudication of all the cases (irrespective of monetary limit) relating to Service Tax may be carried out only by the jurisdictional ACs/DCs of the Central Excise as per section 73 of the Finance Act, 1994.

 

Earlier, the C.B.E. & C. by its Circular No. 30/1/2000, dated 5‑6‑2000 (appended as Annexure III) had modified its earlier Circular No. 11/5/96, dated 22‑4‑1996 and laid down the monetary limits for powers of adjudication of Central Excise Officers of different ranks for service tax assessment as under

 

Additional Commissioner                                                                    without limit

 

Joint Commissioner                                                                            Rs.20lakhs

Assistant Commissioner/ Deputy Commissioner                              Rs. 5 lakhs

 

Board in its Circular No. 752/68/2003, dated 1st October, 2003 (appended as Annexure VI) has prescribed a uniform monetary limit to different categories of officers for the purpose of deciding the competence of adjudication of cases under section 33 and section 11A (both section though not applicable to service tax assesses, but in the case of Mark Auto Industries Ltd. v CCE, New Delhi (2003) 161 ELT 473 (Tri.‑Del) it was held that non‑mention of section 11A in section 83 of the Finance Act, 1994 does not debar the Deputy Commissioner to issue notice for the recovery of service tax) without differentiating whether or not cases involve fraud, collusion, any wilful misstatement, suppression of facts or contravention of Central Excise Act/Rules with intent to evade duty and/or where extended period has been invoked including classification and valuation of excisable goods and CENVAT credit cases. The Board has also enhanced the monetary limit of the amount of duty involved from the present level for different categories of officers for adjudicating cases.

 

Board has decided that the powers of adjudication and determination of duty shall be exercised based on the monetary limit (duty involved in a case as under).

 

Central Excise Officers

Powers of Adjudication

(Amount of duty involved)

Deputy/ Assistant Commissioners

Up to Rs. 5 Lakhs

Joint Commissioners

Above Rs. 5 Lakhs and up to Rs. 20 Lakhs

Additional Commissioners

Above Rs. 20 Lakhs and up to Rs. 50 Lakhs

Commissioners

Without Limit

 

Note.‑‑Cases related to issues mentioned under first proviso to section 35B(1) of Central Excise Act, 1944 would be adjudicated by the Additional/Joint_ Commissioners without any monetary limit.

 

PS. Please note that in Circular No. 75/5/2004‑ST, dated 3rd March, 2004, there are two places where date 6th June has been given instead of 5th June.

 

Instruction regarding accountability of officers

 

The Raipur Commissionerate's Standing Order No. 1/98 (Service Tax), dated 12‑1‑1998 (appended as Annexure IV) has issued instructions to have proper control over the service tax assessees, the augmentation and accountability of the officers. As per the aforesaid instruction, all documents and return received in the Departments should be diarised. The Superintendent of Central Excise has been instructed to maintain the records of service wise registration of service tax assessee in the prescribed Proforma, the copy of the same is appended with the aforesaid Order No. 1/98.

 

Constitution of separate Service Tax Cell to deal with all administrative and policy matters

 

The Commissioner of Central Excise, Calcutta‑II, has constituted a separate cell to deal with all administrative and policy matters. The Trade Notice No. 112/97‑ST, dated 2‑12‑1997‑CCE, Calcutta‑II, is appended as Annexure V.

 

CBEC decision to allocate the Service Tax Exemption work to TRU

 

The CBEC in its Circular No. 69/18/2003‑ST, dated 15th December, 2003 (appended as Annexure VII) has decided that the work relating to "Service Tax Exemption under section 93 of the Finance Act, 1994" being handled by the CX4 Section of CBEC shall henceforth be handled by the TRU (Tax Research Unit).

 

Annexure I

Director General (Service Tax) notified as Central Excise Officer under section 65(4)

 

[Notification No. 46198‑ST GSR 59(E) [F. No. 137/13/97‑CX.4], dated 28‑1‑1998]

 

In exercise of the powers conferred by clause (b) of section 2 of the Central Excise Act, 1944 (1 of 1994) and rule 3 of the Service Tax Rules, 1994 read with clause (4) of section 65 of the Finance Act, 1994 (32 of 1994), the Central Board of Excise and Customs hereby appoints the Director General (Service Tax) as Central Excise Officer and invests him with all the powers to be exercised by him throughout the territory of India as are exercisable by the Chief Commissioner of Central Excise, such powers being the powers of a Central Excise Officer conferred under the Finance Act, 1994 (32 of 1994) and the Service Tax Rules, 1994 regarding any taxable service.

 

Annexure II

Service Tax ‑ Communication of new address of Directorate

 

[Commissioner of Central Excise and Customs, Cochin I, Trade Notice No. 91/2000(S. T.), dated 28‑8‑2000]

 

All concerned are hereby informed that the Directorate of Service Tax Mumbai, has been shifted from New Central Excise Building, Churchgate, Mumbai to 9th Floor of Piramal Chambers at Parel, Mumbai with effect from 17‑8‑2000. The new address and telephone numbers are as under:

 

Directorate of Service Tax,

9th Floor, Piramal Chambers,

Jijibhoy Lane, Lalbaug, Parel,

Mumbai‑400 021.

Tel. No. 4102585 DGST (Direct)

4102584/4102586/4102589

Fax No. 4102587

 

Further correspondences to the Directorate may be made in the new address

 

Annexure III

Service Tax ‑ Monetary limits and powers of adjudication of officers of Central Excise in relation to Service Tax Rules

 

[C.B.E. & C. Service Tax Circular No. 30/1/2000, dated 5‑6‑2000]

 

I am directed to refer to Service Tax Circular No. 11/5/96, dated 22‑4‑1996 whereby monetary limits for powers of adjudication of Central Excise Officers of different ranks had been laid down for Service Tax assessment. In pursuance of CEGAT decision in the case of M/s. Bharati Cellular Ltd. wherein it was held that the adjudication order passed by the Commissioner of Central Excise under section 73 are not appealable in the Tribunal, the matter has been re‑examined and it had now been decided to make following changes in the column relating to "Designation of Officers" and "Amount of Service Tax involved" in the Table given in the said circular:

 

(i)         Addl. Commissioner                                                               without limit

(ii)        Jt. Commissioner                                                                   Rs.20lakhs

(iii)       ACs./DCs                                                                                Rs. 5 lakhs

 

2.         There is no change in remaining contents of the Circular.

 

Annexure IV

Proper Control Over Assessees ‑ Accountability of the Officers

 

[Raipur Commissionerate's Standing Order No. 1198 (Service Tax), dated 12‑1‑1998]

 

1.         Due to gradual enlargement of service tax, and to have proper control over the service tax assessees, the augmentation and accountability of the officers, it is felt necessary to prescribe the records and periodical returns in respect of levy, collection and assessment of service tax.

 

2.         In order to streamline the procedure, the following instructions are issued for compliance.

 

(i)         As soon as the documents including the quarterly returns are received in the assessment range the same should be diarised. Repeat, no document including quarterly shall escape the entry in daily dak receipt register. This procedure mutatis mutandis applies to despatch of daily dak also.

 

(ii)        For the purpose of registration each Superintendent, Central Excise, responsible to collect Service Tax shall maintain the service tax‑wise and Tehsil‑wise record of registration of service tax assessees in the following proforma.

 

PROFORMA

Village .........

______________________________________________________________________________________

S.         Full name and complete                     Location of the Business                    Description

No.       postal address of the                          premises with brief                             of services

            assessee showing Shop/                   particulars such as name

            House No., Ward No.                          of the House owner,

            etc.                                                      House No. Ward No.

                                                etc. and dimensions of

                                                                        the premises and

                                                            geographical situation

                                                                        as per the map approved

______________________________________________________________________________________

1                      2                                                          3                                                          4

______________________________________________________________________________________

Year     Inward Diary No. and                          Date of issue of                                   Registration

            date of receipt of                                 registration certificate

            application                                           Number

_____________________________________________________________________________________

5                      6                                                          7                                                          8

_____________________________________________________________________________________

How registration certificate                             Date of cancellation of                        Remarks

was sent and despatch No.                            or suspension or surrender

and date                                                          of registration certificate

_____________________________________________________________________________________

9                                                                                  10                                                        11

_____________________________________________________________________________________

 

RECORD OF ASSESSMENT OF SERVICE TAX (Service Tax‑wise)

_____________________________________________________________________________________

Name and address of             Quarter ending                        Date of receipt                        Value of

the assessee alongwith                                                          of the return                             service tax

registration No. of the

assessee

____________________________________________________________________________________

1                                                          2                                              3                                              4

____________________________________________________________________________________

 

____________________________________________________________________________________

Amount of service                  Amount of service                   Amount of service                   Particulars

tax paid                                    tax assessed                          tax paid short/                         of demand

                                                                                                excess                                    issued/refund

___________________________________________________________________________________

5                                                          6                                              7                                              8

___________________________________________________________________________________

 

___________________________________________________________________________________

___________________________________________________________________________________

Particulars of payment of                    Progressive total of duty                                             Initial of the

demands or refund                             assessed since 1st April                                            assessing officer

                                                            to 31st March                                                              with name in

                                                                                                                                                block letters

___________________________________________________________________________________

9                                                                      10                                                                                11

___________________________________________________________________________________

(iii) Records of Misc. Receipts                                   Month……….. Year ………. Tax on: ………….

___________________________________________________________________________________

S. No.              Date                Demand                                              Misc. Demands

                        No.                                                       ________________________________________

                                                                                    Nature i.e.                    Name and                   Amount

                                                                                    Fine/P.P./                    address

                                                                                    interest                        of the party

___________________________________________________________________________________

1                      2                      3                                  4                                              5                      6

___________________________________________________________________________________

 

___________________________________________________________________________________

PARTICULARS OF CHALLANS

___________________________________________________________________________________

Name of the Bank                   Number                       Date                Amount                        Remarks

___________________________________________________________________________________

            7                                  8                                  9                      10                                            11

___________________________________________________________________________________

As soon as the demand is confirmed the details may be entered in Col. No. 1 to 6 and after the payment is made the details of payments may be mentioned in Col. No. 7 to 10.

 

(iv)       The assessing Superintendent will complete the assessment of quarterly returns of service tax and send a copy of the quarterly return to the jurisdictional Assistant Commissioner and the Chief Accounts Officer, Central Excise, Raipur.

 

Annexure V

Administrative machinery for collection ‑ Investigation, etc.

 

[CCE, Calcutta‑II, Trade Notice No. 112/97‑S.T., dated 2‑12‑1997]

 

The Commissioner of Central Excise, Calcutta‑II has constituted a Cell in the Head quarter's Office of the Commissionerate to deal with all administrative and policy matters relating to Service Tax.

 

2.         The Cell is headed by an Assistant Commissioner of Central Excise. The functions and powers of the Cell will be:

 

3.         (a)        Application for registration in Form ST‑1 received from the assessee shall be acknowledged by             an officer of the rank of Superintendent of Central Excise.

 

(b)        Certificate of registration to be issued in Form ST‑2 will be issued under the name and signature of the Assistant Commissioner.

 

(c)        Quarterly return will be assessed by the Superintendent.

 

(d)        For the purpose of provisional assessment whenever a request is received, the Assistant Commissioner will make ‑an order for provisional assessment for the tax.

 

(e)        The powers of assessment under sections 72, 73, 74 of the Finance Act dealing with best judgment assessment, value of taxable service, escaping assessment, rectification of mistakes will be exercised by the Assistant Commissioner. However, whenever period of 5 years or more is involved under section 73 of the Finance Act, ' 1994 (32 of 1994), Commissioner will be required to exercise the powers.

 

Only these Officers designated for the purpose of collection of Service Tax will be in charge of collection of Service Tax for this Commissionerate.

 

It may be noted that there shall be no routine visit/checks to the premises of the assessees of Service Tax.

 

However, the Assistant Commissioners in case of necessities for verification or investigation will authorise officers subordinate in rank to him to visit such premises.

 

Again, the power of search will be exercised by the Assistant Commissioners of Central Excise with the approval of the Commissioner. Copy of Notification No. 1/94‑Service Tax, dated 28‑6‑1994, Notification No. 3/94Service Tax, dated 30‑6‑1994 and 7/96‑Service Tax, dated 31‑10‑1996 already circulated vide T.N. No. 105/ST‑1/CE/PRO/Cal‑11/96, dated 9‑12‑1996 for information.

 

This Trade Notice supersedes the earlier Para 5 of T. Notice No. 105/ST1/CE/PRO/Cal‑II/1996 of 9‑12‑1996.

 

Annexure VI

Power of Adjudication of Central Excise Officers under section 33 and section 11A of the Central Excise Act, 1944 ‑ Instruction ‑ Regarding

 

Circular No. 752/68/2003‑CX, dated 1‑10‑2003

 

I am directed to say that the Board has decided to review the Power of Adjudication of the Central Excise officers and the monetary limit prescribed under section 33 and section 11A of the Central Excise Act, 1944 with the objective of expeditious adjudication of cases. For this purpose, the Board has decided to prescribe the uniform monetary limit to different categories of officers for the purpose of deciding the competence of adjudication of cases without differentiating whether or not cases involve fraud, collusion, any wilful misstatement, suppression of facts or contravention of Central Excise Act/Rules with an intent to evade duty and/or where extended period has been invoked. It has also been decided by the Board to enhance the monetary limit of the amount of duty involved from the present level for different categories of officers for adjudication cases.

 

2.         Accordingly, the Board has decided to

 

(i)         Have uniform monetary limits for adjudication of Central Excise cases under section 11A and/or section 33 of the Central Excise Act, 1944, whether or not the cases involve fraud, collusion or any wilful misstatement or suppression of facts, or contravention of any of the provisions of the Act or of the Rules made thereunder with intent to evade payment of duty and whether or not extended period has been involved.

 

(ii)        Prescribe monetary limits for adjudication of show casue notices relating to classification and valuation of excisable goods to different categories of officers. Prior to this circular, Deputy/ Assistant Commissioners were competent to adjudicate show cause notices relating to determination of classification and valuation without any monetary limit of the amount of duty involved.

 

(iii)       Prescribe monetary limits for adjudication of show cause notices relating to CENVAT credit cases for different categories of officers. Prior to this Circular Deputy/ Assistant Commissioenrs are competent to adjudicate show cause notices relating to CENVAT credit without any monetary limit of the amount of credit involved.

 

3.         Attention is invited to sub‑para 2.1 of Part II (Adjudication) of the Central Excise Manual issued on 1st September, 2001. To give effect to the proposed changes, for the said sub‑para 2.1 of Part‑II (Adjudication) of the Central Excise Manual, the following shall be substituted, namely:

 

2.1       Adjudication of confiscation and penalty has to be done by Officers specified in section 33 of the Central Excise Act, 1944. Central Excise Officers have the power to determine duty short paid or not paid, erroneously refunded under section 11A of the said Act. For this purpose, the Board has decided that the powers of adjudication and determination of duty shall be exercised, based on monetary limit (duty involved in a case) as under:

 

A.         All cases involving fraud, collusion, any wilful mis‑statement, suppression of facts or contravention of Central Excise Act/Rules with an intent to evade duty and/or where extended period has been invoked in show cause notices (including classification and valuation of excisable goods and CENVAT credit cases) will be adjudicated as follows:

 

Central Excise Officers

Powers of Adjudication

(Amount of duty involved)

Deputy/ Assistant Commissioners

Upto Rs. 5 lakhs

 

 

Joint Commissioners

Above Rs. 5 lakhs and upto Rs. 20 laklas

Additional Commissioners

Above Rs. 20 lakhs and upto Rs. 50 lakhs

Commissioners

Without limit

 

B.         Cases which do not fall under the Category (A) above including all cases relating to determination of classification and valuation of excisable goods and CENVAT credit will be adjudicated as follows:

 

Central Excise Officers

Powers of Adjudication

(Amount of duty involved)

Deputy/ Assistant Commissioners

Upto Rs. 5 lakhs

Joint Commissioners

Above Rs. 5 lakhs and upto Rs. 20 lakhs

Additional Commissioners

Above Rs. 20 lakhs and upto Rs.50lakhs

Commissioners

Without limit

 

C.        Cases related to issues mentioned under first proviso to section 35B(1) of Central Excise Act, 1944 would be adjudicated by the Additional/joint Commissioners without any monetary limit.

 

4.         It is clarified that in view of the above modifications, all cases including cases relating to determination of classification and valuation and cases pertaining to CENVAT credit whether or not involving fraud, collusion, wilful mis‑statement, suppression of fact or contravention of Central Excise Act/Rules with intent to evade duty and/or where extended period has been invoked will be treated uniformly and the prescribed monetary limit is applicable to all cases for the purpose of adjudication.

 

5.         All previous Board's Circular relating to adjudication of show cause notices are hereby rescinded/modified to above extent.

 

6.         In case different show cause notices have been issued on the same issue answerable to different adjudicating authorities, attention is invited to CBEC's Circular No. 362/78/97‑CX, dated 9‑12‑1998 (1998 (97) ELT T3), whereby it has been clarified that all the show cause notices involving the same issue will be adjudicated by the adjudicating authority competent to decide the cases involving the highest amount of duty.

 

7.         The value of goods/ conveyance liable to confiscation will not alter the above powers of adjudication, which shall solely depend upon the amount of duty/CENVAT credit involved in the offending goods.

 

8.         Regarding issue of show cause notices, it is clarified that in respect of all cases, whether or not fraud, collusion, wilful mis‑statement, suppression of fact or contravention of Central Excise Act/Rules with intent to evade duty and/or where extended period has been invoked i.e. cases falling under any category (A), (B) or (C) of Para 3 above, the show cause notice shall be approved in writing and singed by the officer comptent to adjudicate the said show cause notice. This instruction will come into effect prospectively i.e. from the date of issue of this Circular.

 

9.         All previous Board's Circulars relating to issue of show cause notices are hereby rescinded/ modified to the above extent.

 

10.       It is clarified that notwithstanding this revision, in all 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,

 

11.       In all cases where personal hearing is yet to be commenced, the adjudications should be done by the appropriate level of officers as per the revised instructions. An immediate exercise should be undertaken to take stock of the present pendencies and the transfer of relevant files and records to respective adjudicating authorities and the exercise of transfer of case records should be completed by 20th October, 2003, under proper receipt. The recast figures should be reflected in the Monthly Technical Report of October, 2003, which is to be submitted in November, 2003.

 

12.       The Chief Commissioners are requested to report the number of cases, which will go out of the jurisdiction of officers of different levels as a result of these modifications.

 

Annexure VII

Distribution of work amongst various sections of CBEC regarding

 

Circular No. 69/18/2003‑ST [F. No 137/8/2001‑CX‑4(Pt)], dated 15‑12‑2003

 

Please refer to Circular No. 661/52/2002‑CX, dated 11‑9‑2002 issued under File No. 137/8/2001‑CX‑4 on the subject mentioned above.

 

2.         It has been decided by the Board that the work relating to "Service Tax exemptions under section 93 of the Finance Act 1994" being handled by the CX4 Section shall henceforth be handled by the TRU.

 

Annexure VIII

 

Notification No. 3/2004‑ST [F. No. 137/14/2003‑CX‑4], dated 11‑3‑2004, as corrected by corrigendum, dated 29th March, 2004* 

 

In exercise of powers conferred by clause (b) of section 2 of the Central Excise Act, 1944 (1 of 1944) and rule 3 of the Service Tax Rules, 1944, read with clause (4) section 65 of the Finance Act, 1994 (32 of 1994), the Central Board of Excise and Customs hereby appoints the officers mentioned in the column (2) of the Table below as Central Excise Officers and invests them with all the powers to be exercised by them throughout the territory of India as are exercisable by the Central Excise Officer of the corresponding rank as specified in the column (3) of the said Table, such powers being the powers of a Central Excise Officer conferred under the Finance Act, 1994 (32 of 1994) and the Service Tax Rules, 1994 regarding any taxable service.

 

S. No.

Designation

Jurisdiction

(1)

(2)

(3)

1.

Director General, Central Excise Intelligence

Chief Commissioner of Central Excise for whole of India

2.

Additional Director General, Central Excise Intelligence

Commissioner of Central Excise for whole of India

3.

Additional Director, Central Excise Intelligence

Additional Commissioner of Central Excise for whole of India

4.

Joint Director, Central Excise Intelligence

joint Commissioner of Central Excise for whole of India

5.

Deputy Director, Central Excise Intelligence

Deputy Commissioner of Central Excise for whole of India

6.

Assistant Director, Central Excise Intelligence

Assistant Commissioner of Central Excise for whole of India

7.

Superintendent, Central Excise Intelligence

Superintendent Central Excise for whole of India

8.

Inspector, Central Excise Intelligence

Inspector of Central Excise

 

 

Annexure IX

Monetary limits and powers of adjudication of officers of Central Excise in relation to Service Tax Rules, 1994 ‑ Regarding

 

Circular No. 75/5/2004‑ST [F. No. 137/11/2004‑CX‑4], dated 3‑3‑2004

 

Kindly refer to Board's Circular Nos. 11/5/96, dated 22nd April, 1996 and 30‑1‑2000, dated 6th June, 2000 on the above mentioned subject.

 

1.         Any orders passed by Addl. Commissioners/joint Commissioners can neither be revised (under section 84) nor can it be appealed before any appellate authority (under section 85 and under section 86). Therefore, in order to avoid problems of appeals against the orders passed by Joint Commissioners/ Additional Commissioners/ Commissioners of Central Excise, an amendment was carried out in section 73 of the Finance Act, 1994 on 16‑7‑2001, which limited the authority to ACs/DCs of Central Excise for issuing the Show Cause Notices for short levy of service tax and also determination of such short levy by way of adjudication.

 

2.         In view of the above, the matter of power of adjudication of officers of Central Excise in relation to Service Tax Rules, 1994 was re‑examined and it has now been decided by the Board that adjudication of all the cases relating to Service Tax may be carried out only by the jurisdictional ACs/DCs of the Central Excise as per section 73 of the Finance Act, 1994.

 

3.         The above referred circulars, dated 22‑4‑1996 and 6‑6‑2000 stand withdrawn and superceded.

 

4.         The field formations may suitably be informed.

 


 [K1]The above notification was earlier issued under Central Excise No. 7/2004‑CE, dated 11‑32004, which is now by corrigendum dated 29‑3‑2004 changed to Notification No. 3/2004-ST, dated 11‑3‑2004.