Right to Information Act, 2005

Service Tax

 

 

I           The particulars of its organization, functions and duties

 

Service Tax was introduced in India in 1994 by Chapter V of the Finance Act, 1994.  The Central Board of Excise & Customs (CBEC), Department of Revenue, Ministry of Finance, deals with the task of formulation of policy concerning levy and collection of Service Tax. The CBEC is assisted by the Directorate of Service Tax located at Mumbai.  The Service Tax is being administered by various Central Excise Commissionerate spread across the country.  The jurisdiction of each Commissionerate has been specified vide Notf. No. 14/2002-CE(NT) as amended from time to time.  However there are six Commissionerates located at metropolitan cities of Delhi, Mumbai, Kolkata, Chennai, Ahmedabad and Bangalore which deal exclusively with work related to Service Tax.  These Commissionerates are supervised by the jurisdictional Chief Commissionerate of Central Excise.  Each Commissionerate consists of 3 to 5 divisions with each division consisting of a number of range offices.


II         The powers and duties of its officers and employees

 

            The powers and duties of the officers are derived from the Chapter V of the Finance Act 1994 and Service Tax Rules 1994 and are as enumerated below:-

 

Commissioner (Group A)                                                       Head of Department powers

·        Adjudication *

·        Centralized registration in r/o units located within the jurisdiction of the Commissionerate

·        Powers of revision/review

·        Pre audit / post audit of rebate / refund claims.

 

Joint/Addl. Commissioner (Group A)                                                           

·        Adjudication *

·        Administrative supervision over Division

 

 

Asstt. Commissioner/Dy. Commissioner (Group A)            Head of office powers & Statutory powers under the Act 

·        Adjudication *

·        Provisional assessment

·        Sanctioning of rebate / refund claims.

·        Work related to audit / anti evasion.

 

* Adjudication powers are allocated with reference to monetary limits and have been notified vide Notification No. 30/2005-ST dt. 10.8.05 consequent to amendment made in the Finance Act, 2005.

 

Superintendent (Group B, Executive)                                               Registration,

·        scrutiny of return

·        surveys

·        anti evasion checks / enquiries

 

 

Besides Superintendents there are Group C executive officers of the rank of Inspectors, Group B & C ministerial officers and Group D officers in each Commissionerate.

 

III        The procedure followed in the decision making process including channels of supervision and accountability

 

1.  The Commissionerate is headed by the Commissioner who is the supervisory head and final decision making authority with regard to any disputes arising regarding the levy of Service Tax on any service. The Commissioner is assisted by the Joint/Additional Commissioner.  Further, the Commissionerates consists of division headed by the Asstt./Dy.Commissioner.  Each range office of the division is looked after by the Superintendent assisted by the Inspector.

 

2.   Registration- The Service Tax asseessee is required to apply for registration to the jurisdictional range superintendent who is responsible for granting the registration certificate.  However, centralized registration is being granted by the Commissioner to an assessee having two or more offices located within the jurisdiction of the Commissionerate.  The Chief Commissioner of Central Excise. is responsible for granting centralized registration in r/o offices located within two or more Commissionerates and the Director General of Service Tax is responsible for granting centralized registration in r/o offices located within two or more zones.

 

3          The Service Tax returns filed by the assessee after self assessment are checked by the Inspector and put up to the Superintendent.  For any dispute arising a SCN to the asseessee is issued by the Asstt./Dy.Commissioner of the division.

 

 4.        Provisional assessment of service tax liability can be allowed by the Asstt ./ Dy. Commissioner of the division.. The Asstt. / Dy. Commissioner is required to finalized the assessment after calling for such documents or records as he may consider necessary or proper in the circumstances of the case.

 

5.         Adjudication - Departmental action against an assessee starts with a Show Cause Notice by the department.  Normally thirty days time is given to reply to the Show Cause Notice.  Based on the reply and further submissions at a personal hearing which the assessee can demand, the Central Excise Officer (Asstt./Dy Commissiner) passes an order.  This order is called an order-in-original or an adjudication order.  Against this order an appeal can be filed under Section 85, with the Commissioner (Appeals).  The jurisdictional Commissioner can also suo motu or otherwise revise the order of the Assistant Commissioner/Dy.Commissioner under Section 84.  After the Commissioner (Appeals), the next channel is the Customs, Excise and Service Tax Appellate Tribunal (CESTAT).  From the Tribunal on a question of law appeal can be made to the High Court and from there to the Supreme Court.

 

6.         Refund/Rebate- The assessee may also apply for refund wherever he paid the service tax more than the tax assessed or payable.  Such refund can be made in accordance with the provisions of Section 11B of Central Excise Act, 1994 as made applicable to Service Tax by virtue of Section 83 of the Finance Act, 1994.  The Asstt./Dy.Commissioner of the jurisdictional division office is the authority to whom the claim for refund is to be filed and is also the sanctioning authority.  However, all claims above Rs. 5 lakhs are required to be pre-audited and all refund claims are required to be post audited by the Commissioner.

 

7.         Audit-   Audit of the Service Tax assessees is being conducted as per norms prescribed by the Department.  A service tax audit cell is functioning headed by the Joint/Addl. Commissioner under the overall supervision of the Commissioner.  The audit of all units is being conducted by a team of officers comprising of Superintendents and Inspectors.

 

IV        The norms set for the discharge of its functions

 

            The norms are specified in the Act and the citizens’ charter.

 

 

V         The rules, regulations, instructions, manuals and records held by it or under its control or used by its employees for discharging its functions

 

i.          Service tax was introduced in 1994 by chapter V of the Finance Act 1994 and it continues to be administered under the same Act as amended from time to time. The other legal provisions applicable to Service Tax are-

(i)         Service Tax Rules 1994.

(ii)        Cenvat Credit Rules 2004.

(iii)       Service tax (Advance Ruling) Rules 2003.

(iv)       Service tax (removal of difficulty) order.

(v)        Export of services rules 2005.

(vi)       Specific provisions of the Central Excise Act 1944 as adopted  for the purposes of Service Tax..

(vii)      Service Tax (Registration of Special Category of Persons) Rules, 2005.

 

ii           Notifications and circulars issued from time to time are available on web site www.cbec.gov.in.

 

 

VI        A statement of the categories of documents that are held by it or under its control

 

1.                  Form ST-1-Application for registration under Section 69 of the Finance Act 1994(32 of 1994).

2.                  Form ST-2-Certificate of registration under Section 69 of the Finance Act 1994(32 of 1994).

3.                  Form ST-3-Return of service tax credited to the Government of India.

 

 

VII      The particulars of any arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of it is policy or implementation thereof

 

            As a trade facilitation measure Help Centers have been set up to address specific problems encountered by the assessees. Open house/meetings/seminars are being organized with the help of trade association on regular basis wherein specific problems both administrative/legal, faced by the assessees in implementation of the Act/rules are sorted out in an open forum.  The RAC/PGC is being constituted to discuss and sort out difficulties faced by trade and its associations in implementation of any of the provisions of the Act.

 

VIII     A Statement of the boards, councils, committees and other bodies consisting of two or more persons constituted as its part or for the purpose of its advise, and as to whether meetings of those boards, councils, committees and other bodies are open to the public, or the minute of such meetings are accessible for public.

 

       The advisory bodies at Commissionerate level have been mentioned in (vii) above.  At the central level, the committees are constituted on the orders of the CBEC/Ministry of Finance.

 

IX Directory of its offices and employees

 

This information has been notified by each of the formations separately.

 

X Monthly remuneration received by each of its officers and employees, including the system of compensation as provided in its regulations

 

This information has been notified by each of the formations separately.

 

XI Budget allocated to each of its agency, indicating the particulars of all plans, proposed expenditures and reports on disbursements made

 

This information has been notified by each of the formations separately.

 

XII      The manner of execution of subsidy programmes, including the particulars of all plans, proposed expenditures and reports on disbursements made.

 

          Not applicable

 

XIII     Particulars of recipients of concessions, permits or authorization granted by it.

 

            Section 93(1) of the Finance Act, 1994, empowers the Central Government to grant exemption from payment of Service Tax, in exercise of these powers, the Central Government has granted partial/full exemption to number of services.  Some of these major exemptions are:-

 

I(a)Services provided to the United Nations or an International Organization declared by the Central Government

(a)    Services provided to a developer of Special Economic Zone or to a unit of Special Economic Zone which satisfy certain prescribed conditions.

(b)   Value of goods and materials sold by the service provider to the recipient or service during the course of providing any taxable service provided that no CENVAT credit has been taken on such goods and materials, or, if CENVAT credit has been taken, such credit is paid before effecting the sale.

 

II   Export of Services-As per Rule 4 of the Export of Services Rules, 2005, all taxable services are exportable without payment of Service tax.  Further, as per Rule 5 of the said Rules, rebate of Service tax is also available of the Service tax paid on notified taxable services, input services, or inputs used in providing exported services.

 

 

XIV     Details in respect of the information, available to or held by it, reduced in an electronic form

 

 (a)       Comprehensive information on Service Tax laws and procedures maintained at the http://www.cbec.gov.in web site.

 (b)    Information on electronic filing in Service Tax available at http://www.exciseandservicetax.nic.in

 (c)    Directorate of Data Management is maintaining service-wise revenue  of Service Tax in electronic form.

 

 

XV       The particulars of facilities available to citizens for obtaining information, including the working hours of a library or reading room, if maintain Ned for public use

 

Library is maintained in each office however the facility is available only to the officers of the department and is not meant for public use.

 

XVI     The names, designations and other particulars of the Public information officers.

 

List of CPIO’s/CAPIO’s  is available at website www.cbec.gov.in/info-act/aa-cpio/aa-cpio-idx.htm   

 

XVII    Such other information as may be prescribed.

 

Nil