REGISTRATION UNDER SERVICE TAX PROVISIONS

[Mr. M. GOVINDARAJAN]

     Registration is an identification of an assessee. Identification is necessary to deposit service tax, file returns and undertake various processes ordained by law relating to service tax. As per Sec. 65(7) of the Finance Act, 1994 assessee means a person liable to pay service tax and includes his agent.

     Sec. 69 of the Finance Act, 1994 ('Act' for short) provides that every person liable to pay the service tax under Chapter V of the Act shall, within such time and in such manner and in such form as may be prescribed, make an application for registration to the Superintendent of Central Excise.  The Central Government is given power to notify such other person or class of persons who shall make an application for registration within such time and in such form as may be prescribed.

     The word 'person' has not been defined under service tax provisions.  The word 'person' shall include any company or association or body of individuals, whether incorporated or not, Hindu undivided family, proprietary firm or partnership firm, trust, institution, society etc.,

     Rule 4 of Service Tax Rules, 1994 ('Rules' for short) provides the procedure of registration for service tax.  

Registration Requirement:

§         Every person liable for paying the service tax shall make an application to the concerned Superintendent of Central Excise in Form ST-1 for registration within a period of thirty days from the date on which the service tax under Sec. 66 of the Finance Act, 1994 is levied;

§         Where a person commences the business of providing a taxable service after such service has been levied, he shall make an application for registration within a period of thirty days from the date of such commencement;

§         In case service tax is extended to a new service, an existing service provider must register himself, unless he is eligible for exemption under any notification, within a period of thirty days from the date of new levy.

§         In case a recipient is liable to pay service tax he is also to obtain registration;

§         The 'Input Service Distributors' are also required to register them;

§         Every person who has provided a taxable service of value exceeding Rs.9 lakhs in the preceding financial year is required to register with the Central Excise or Service Tax office having jurisdiction over the premises or office of such service provider;

§         When a registered assessee transfers his business to another person, the transferee shall obtain a fresh certificate of registration.

Centralized Registration:

     Where a person, liable for paying service tax on a taxable service-

§         Provides such service from more than one premises or offices; or

§         Receives such service in more than one premises or offices; or

§         Is having more than one premises or offices, which are engaged in relation to such service in any manner, making such person liable for paying service tax

And has centralized billing system or centralized accounting system in respect of such service, and such centralized billing or centralized accounting systems are located in one or more premises, he may, at his option, register such premises or offices from where centralized billing or centralized accounting systems are located. The registration shall be granted by the Commissioner of Central Excise in whose jurisdiction the premises or offices, from where centralized billing or accounting is done, are located.

Multiple Services Registration:

     Where an assessee is providing more than one taxable service, he may make a single application, mentioning therein all the taxable services provided by him, to the concerned Superintendent of Central Excise.  However, while making application for registration all taxable services provided by the person should be mentioned.

Procedure for registration:

§         A service provider or service receiver or Input service distributor seeking registration should file an application in Form ST- 1 in duplicate before the Jurisdictional Central Excise/Service Tax Officer;

§         To verify the correctness of declaration of the said form certain documents such as copy of PAN card, proof of address of business premises, constitution of the business may be required by the registering authority. PAN card is essential because the service tax code/Registration number is generated based on the PAN issued by the Income Tax Department. The copy of the said certificates may be self certified.  In select cases in case of doubts, original documents may have to be presented for verification;

§         Where there is a change in any information or details furnished by an assessee in Form St - 1 at the time of registration or he intends to furnish any additional information or detail, such change or information or details shall be intimated, in writing, by the assessee to the Jurisdictional Assistant Commissioner or Deputy Commissioner of Central Excise, as the case may be, within a period of thirty days of such change.

§         The Registration certificate in Form ST - 2 should be issued within a period of seven days from the date of submission of application of ST-1 along with all relevant details/documents;

§         In case the registration certificate is not issued within seven days, the registration applied for is deemed to have been granted.

Surrender of Certificate of Registration:

     Every registered assessee, who ceases to provide the taxable service for which he is registered, shall surrender his registration certificate immediately to the Superintendent of Central Excise. On receipt of the certificate, the Superintendent of Central Excise shall ensure that the assessee has paid all monies due to the Central Government under the provisions of service tax and the rules and the notifications issued there under and thereupon cancel the registration certificate.

Other Points:

1.      Any change in premises/office, as provided in Form ST -1 should be intimated to the jurisdictional Central Excise Officer.

2.      The assessee is required to make written request for duplicate registration certificate in case a registration certificate issued by the Department is lost. The same will be issued by the Department after such entry in the registers/records of the office.

3.      In the event of transfer of the business the transferee should obtain a fresh certificate and the transferor should surrender his certificate of Registration.

4.      A person liable to pay service tax must apply for registration before he starts paying service tax and filing of return.

Penalty:

     Failure of registration may attract a penalty under Sec. 77(1)(a) of the Act up to Rs.5000/- or Rs.200/- for every day during which such failure continues, whichever is higher.  However, such penalty may be waived in case the assessee proves that there was reasonable cause for such failure.

CASE LAWS:

1.      Vivek Mukund Modhe V. Commissioner of Central Excise, Nasik - 2008 (9) STR 98 (Tri. Mumbai) = [2008 -TMI - 2531 - CESTAT, MUMBAI]

The appellant was running a second hand taxi he sold the taxi and surrendered the service tax registration and paid the tax amount together with interest. Penalty as imposed by the Assistant Commissioner is sufficient. There is no ground existing for enhancement of penalty imposed by the Commissioner (Appeals).

2.      Raaj Khosle & Co., V. Commissioner of Central Excise, New Delhi - 2008 (10) STR 600 (Tri. Del) = [2008 -TMI - 4424 - CESTAT NEW DELHI]

The invoices were in the name of the appellant. However the address is different that the registration certificate. Subsequently the registration certificate was got amended by the appellant and office address on the invoices were also included in the registration certificate. In these circumstances the denial of credit is not sustainable and hence set aside.

3.      Commissioner of Central Excise, V. Renee Telephone - 2008 (10) STR 414 (Tri.Del) = [2008 -TMI - 4317 - CESTAT, NEW DELHI]

Under Sec.75A penalty of Rs.500/- can be imposed for failure to apply for Registration.

4.      Febin Advertisers V. Commissioner of Central Excise, Calicut - 2008 (10) STR 50 (Tri. Bang) = [2008 -TMI - 3572 - CESTAT, BANGALORE]

Since the amount had been collected in the form of service tax even without taking out service tax registration the appellants are liable for penalties and interest.

5.      Industrial Security Agency V. Commissioner of Central Excise, Allahabad - 2008 (11) STR 347 (Tri. Del) = [2008 -TMI - 30138 - CESTAT NEW DELHI]

In the instant case penalty under Sec. 77 has been imposed on the appellant for its failure to obtain registration. It is common ground that no penalty is separately provided for failure to obtain registration.

6.      Karam Chand Thapar & Bros (Coal Sales) Ltd., V. Union of India - 2008 (11) STR 459 (Cal. HC) = [2008 -TMI - 30988 - HIGH COURT CALCUTTA]

There is provision for deemed registration if the registration certificate is not granted within a period of seven days. The petitioner's grievance is that there has been no rejection of that application but on the other hand after twenty two months of making of the application the petitioner has been registered in the different service. Since the authorities are willing to re examine the case the court directed that no effect shall be given to the registration.

7.      Commissioner of Central Excise V. Tata Tech., Ltd., - 2008 (11) STR 449 (SC) = [2008 -TMI - 30985 - SUPREME COURT]

Registration certificate is issued by competent authority. The Assistant Commissioner as adjudicating authority is not empowered to go beyond the registration certificate.

8.      Soldiers Indus. Security Agencies V. Commissioner of Central Excise &Customs, Nasik - 2007 (7) STR 283 (Mumbai)

The appellant relied upon extra ordinary tax payers friendly scheme under which if an assessee is registered up to 30.10.2004 and deposits the service tax along with interest no penalty is to be imposed upon him. However the Commissioner (Appeals) did not apply the provision of the above scheme on the ground that the appellants were registered prior to the introduction of the scheme and as such will not be covered by the same.   The tribunal held that the assessee having paid service tax along with interest prior to 30.12.04 is not liable for penalty.

9.      Ballarpur Industries Ltd., V. Commissioner of Customs and Central Excise, Nagpur - 2008 (11) STR 141 (Tri. Mumbai) = [2008 -TMI - 30019 - CESTAT, MUMBAI]

There is a delay in grant of registration certificate beyond seven days of the application not due to any query raised by department. Denial of credit on ground of non registration prima facie found not proper.

10.  Okios V. Commissioner of Central Excise, Bangalore - III - 2007(5) STR 229 (Tri. Bang)

The application filed for registration under service tax was under the category or 'Architect'. The appellant never claimed themselves to be interior decorators.   Since they were wrongly categorized they contested it before the department and their plea was accepted and charged the registration.