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CHAPTER V
SERVICE TAX
93. In the Finance Act, 1994,— .
(A) in section 65B,—
(i) in clause (11),—
(a) in sub-clause (i), after the words “National Council for Vocational Training”, the words
“or State Council for Vocational Training” shall be inserted;
(b) in sub-clause (ii), the word “or” occurring at the end shall be omitted;
(c) sub-clause (iii) shall be omitted;
(ii) in clause (40), after the words and figures "the Central Excise Act, 1944”, the words, figures
and brackets “or the Medicinal and Toilet Preparations (Excise Duties) Act,1955” shall be inserted;
(B) in section 66B, the Explanation shall be omitted;
(C) after section 66B, the following section shall be inserted, namely:—
“66BA. (1) For the purpose of levy and collection of service tax, any reference to section 66 in
the Finance Act, 1994 or any other Act for the time being in force, shall be construed as reference
to section 66B thereof.
(2) The provisions of this section shall be deemed to have come into force on the 1st day of
July, 2012.”;
(D) in section 66D, in clause (d), in sub-clause (i), the word “seed” shall be omitted;
(E) in section 73, after sub-section (2), the following sub-section shall be inserted, namely:-
“(2A) Where any appellate authority or tribunal or court concludes that the notice issued under
the proviso to sub-section (1) is not sustainable for the reason that the charge of,—
(a) fraud; or
(b) collusion; or
(c) wilful misstatement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or the rules made thereunder with
intent to evade payment of service tax,
has not been established against the person chargeable with the service tax, to whom the notice was
issued, the Central Excise Officer shall determine the service tax payable by such person for the
period of eighteen months, as if the notice was issued for the offences for which limitation of eighteen
months applies under sub-section (1).”;
(F) in section 77, in sub-section (1), for clause (a), the following clause shall be substituted, namely:—
“(a) who is liable to pay service tax or required to take registration, fails to take registration in
accordance with the provisions of section 69 or rules made under this Chapter shall be liable to
a penalty which may extend to ten thousand rupees;”;
(G) after section 78, the following section shall be inserted, namely:—
“78A. Where a company has committed any of the following contraventions, namely:—
(a) evasion of service tax; or
(b) issuance of invoice, bill or, as the case may be, a challan without provision of taxable
service in violation of the rules made under the provisions of this Chapter; or
(c) availment and utilisation of credit of taxes or duty without actual receipt of taxable service
or excisable goods either fully or partially in violation of the rules made under the provisions of
this Chapter; or
(d) failure to pay any amount collected as service tax to the credit of the Central Government
beyond a period of six months from the date on which such payment becomes due,
Amendment of
Act 32 of
1994.
Reference to
section 66 to
be construed
as reference
to section 66B.
1 of 1944.
16 of 1955.
32 of 1994.
Penalty for
offences by
director, etc.,
of company.
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then any director, manager, secretary or other officer of such company, who at the time of such
contravention was in charge of, and was responsible to, the company for the conduct of business
of such company and was knowingly concerned with such contravention, shall be liable to a
penalty which may extend to one lakh rupees.”;
(H) in section 83, for the figure and letter “9A”, the words, brackets, figures and letter "subsection (2) of section 9A” shall be substituted;
(I) in section 86, in sub-section (5), for the word, brackets and figure “sub-section (3)”, the words,
brackets and figures “sub-section (1) or sub-section (3)” shall be substituted;
(J) in section 89,—
(a) in sub-section (1), for clauses (i) and (ii), the following clauses shall be substituted, namely:—
“(i) in the case of an offence specified in clauses (a), (b) or (c) where the amount exceeds
fifty lakh rupees, with imprisonment for a term which may extend to three years:
Provided that in the absence of special and adequate reasons to the contrary to be recorded
in the judgment of the court, such imprisonment shall not be for a term of less than six months;
(ii) in the case of the offence specified in clause (d), where the amount exceeds fifty lakh
rupees, with imprisonment for a term which may extend to seven years:
Provided that in the absence of special and adequate reasons to the contrary to be
recorded in the judgment of the court, such imprisonment shall not be for a term of less
than six months;
(iii) in the case of any other offences, with imprisonment for a term, which may extend to one
year.”;
(b) for sub-section (2), the following sub-section shall be substituted, namely:—
“(2) If any person is convicted of an offence punishable under—
(a) clause (i) or clause (iii), then, he shall be punished for the second and for every
subsequent offence with imprisonment for a term which may extend to three years;
(b) clause (ii), then, he shall be punished for the second and for every subsequent offence
with imprisonment for a term which may extend to seven years.”;
(K) after section 89, the following sections shall be inserted, namely:—
“90.(1) An offence under clause (ii) of sub-section (1) of section 89 shall be
cognizable.
(2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences,
except the offences specified in sub-section (1), shall be non-cognizable and bailable.
91. (1) If the Commissioner of Central Excise has reason to believe that any person has
committed an offence specified in clause (i) or clause (ii) of sub-section (1) of section 89, he may,
by general or special order, authorise any officer of Central Excise, not below the rank of
Superintendent of Central Excise, to arrest such person.
(2) Where a person is arrested for any cognizable offence, every officer authorised to arrest a
person shall, inform such person of the grounds of arrest and produce him before a magistrate
within twenty-four hours.
(3) In the case of a non-cognizable and bailable offence, the Assistant Commissioner, or the
Deputy Commissioner, as the case may be, shall, for the purpose of releasing an arrested person
on bail or otherwise, have the same powers and be subject to the same provisions as an officer
in charge of a police station has, and is subject to, under section 436 of the Code of Criminal
Procedure, 1973.
(4) All arrests under this section shall be carried out in accordance with the provisions of the
Code of Criminal Procedure, 1973 relating to arrests.”;
(L) in section 95, after sub-section (1-I), the following sub-section shall be inserted, namely:—
“(1J) If any difficulty arises in giving effect to section 93 of the Finance Act, 2013, in so far as
it relates to amendments made by the Finance Act, 2013 in Chapter V of the Finance Act, 1994,
the Central Government may, by an order published in the Official Gazette, not inconsistent with
the provisions of this Chapter, remove the difficulty:
32 of 1994.
Cognizance
of offences.
Power to
arrest.
2 of 1974.
2 of 1974.
2 of 1974.
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Provided that no such order shall be made after the expiry of a period of one year from the
date on which the Finance Bill, 2013 receives the assent of the President.”;
(M) after section 98, the following section shall be inserted, namely:—
“99. Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July,
2012, no service tax shall be levied or collected in respect of taxable services provided by the
Indian Railways during the period prior to the 1st day of July, 2012, to the extent notices have
been issued under section 73, up to the 28th day of February, 2013.”.
CHAPTER VI
SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013
94. This Scheme may be called the Service Tax Voluntary Compliance Encouragement Scheme,
2013.
95. (1) In this Scheme, unless the context otherwise requires,—
(a) “Chapter” means Chapter V of the Finance Act, 1994;
(b) “declarant” means any person who makes a declaration under sub-section (1) of section 97;
(c) “designated authority” means an officer not below the rank of Assistant Commissioner of
Central Excise as notified by the Commissioner of Central Excise for the purposes of this Scheme;
(d) “prescribed” means prescribed by rules made under this Scheme;
(e) “tax dues” means the service tax due or payable under the Chapter or any other amount due
or payable under section 73A thereof, for the period beginning from the 1st day of October, 2007
and ending on the 31st day of December, 2012 including a cess leviable thereon under any other
Act for the time being in force, but not paid as on the 1st day of March, 2013.
(2) Words and expressions used herein and not defined but defined in the Chapter or the rules
made thereunder shall have the meanings respectively assigned to them in the Chapter or the rules
made thereunder.
96. (1) Any person may declare his tax dues in respect of which no notice or an order of determination
under section 72 or section 73 or section 73A of the Chapter has been issued or made before the 1st
day of March, 2013:
Provided that any person who has furnished return under section 70 of the Chapter and disclosed
his true liability, but has not paid the disclosed amount of service tax or any part thereof, shall not be
eligible to make declaration for the period covered by the said return:
Provided further that where a notice or an order of determination has been issued to a person in
respect of any period on any issue, no declaration shall be made of his tax dues on the same issue
for any subsequent period.
(2) Where a declaration has been made by a person against whom,—
(a) an inquiry or investigation in respect of a service tax not levied or not paid or short-levied or
short-paid has been initiated by way of —
(i) search of premises under section 82 of the Chapter; or
(ii) issuance of summons under section 14 of the Central Excise Act, 1944, as made applicable
to the Chapter under section 83 thereof; or
(iii) requiring production of accounts, documents or other evidence under the Chapter or the
rules made thereunder; or
(b) an audit has been initiated,
and such inquiry, investigation or audit is pending as on the 1st day of March, 2013, then, the designated
authority shall, by an order, and for reasons to be recorded in writing, reject such declaration.
97. (1) Subject to the provisions of this Scheme, a persom may make a declaration to the designated
authority on or before the 31st day of December, 2013 in such form and in such manner as may be prescribed.
(2) The designated authority shall acknowledge the declaration in such form and in such manner as
may be prescribed.
(3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent. of
the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority.
Special
provision for
taxable
services
provided by
Indian
Railways.
Short title.
Definitions.
Person who
may make
declaration of
tax dues.
32 of 1994.
Procedure for
making
declaration
and payment
of tax dues.
1 of 1944.
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Provided that no such order shall be made after the expiry of a period of one year from the
date on which the Finance Bill, 2013 receives the assent of the President.”;
(M) after section 98, the following section shall be inserted, namely:—
“99. Notwithstanding anything contained in section 66, as it stood prior to 1st day of July,
2012, no service tax shall be levied or collected in respect of taxable services provided by the
Indian Railways during the period prior to the 1st day of July, 2012, to the extent notices have
been issued under section 73, up to the 28th day of February, 2013.”.