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TMI BlogDemand and RecoveryX X X X Extracts X X X X X X X X Extracts X X X X ..... tral excise officer can initiate the recovery proceedings. Therefore in the following circumstances recovery proceedings can be initiated: - - Service tax has not been levied or short levied - Service tax has not been paid or short paid - Service Tax erroneously refunded No recovery proceeding can be initiated without issuing a show cause notice (SCN). Subsequent show cause notices on similar grounds may contain only a statement. One important provision has been introduced vide Finance Act, 2015, w.e.f. 14-5-2015 that in case service tax has been self assessed in the return furnished but not paid or short paid then recovery can be made with out issuing any SCN by any modes specified in section 87. It means no bar of limitation / time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f payment of Service Tax Where service tax is provisionally assessed The date of adjustment of the service tax after the final assessment Where any sum, relating to service tax, has erroneously been refunded Date of such refund ================== D. SCN - Date of issue versus Date of Serve For the purpose of section 73 and recover of service tax, show cause notice must be served to the person within the stipulated time period. Date of issuance of show cause notice is taken for calculation for the purpose of calculating the limitation of period. Instead, the date on which the notice has been received by the person shall be taken to calculate the period. Suppose a Show Cause notice is received by Mr. X alleging short payment of Servi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce tax - Section 73(3) When the assessees before issuance of show cause notice: - - The assessee shall on the basis of his own assessment or on the basis of tax ascertained by a Central Excise Officer - Pays the amount of service tax with interest - Inform the Central Excise Officer of such payment in writing, - Central Excise office shall not issue any show cause notice in respect of the amount so paid: However, there may be some chances that the person even after own ascertainment or ascertained by the Central Excise officer, pays short amount then actually required. In such situation, it has been provided that, the Central Excise Officer shall proceed to recover such amount in the manner specified in this section. In such circums ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer or any officer of customs to deduct the amount so payable from any money owing to such person which may be under the control of the said Central Excise Officer or any officer of customs; Recovery from Third Party - Garnishee Proceedings Clause (b) provides that the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central Government either forthwith upon the money becoming due or being held or at or within the time specified in the notice, not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person; It further provided that the person from whom the service tax or any other sum of any kind, is recoverable, will not transfer or otherwise disposes of his business or trade in whole or part or effects any changes in ownership thereof. In case of any such event, all goods in the custody or possession of the person so succeeding may also be attached & sold. Also see: 196/06/2016-ST - 27-7-2016 Recovery as an arrear of land revenue Clause (d) provides that the Central Excise Officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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