Time Limit for Enquiry

[Ganeshan Kalyani]

Dear Sir,

As per Section 72A of Finance Act, 1994 talks about Special Audit in the circumstances given in the said section. Section 82 Power to search premises, give authority to department to do search activity in certain circumstances prescribed in the act. Section 83, applicability of certain provisions of Central Excise Act, 1944.

The above section gives power to department to carry out checking of Assesses. I would like to get clarification as regard the power of authority to ask for the details related to other party dealing from the assessee company. Say for eg. The service tax liability on GTA falls on the party paying the freight amount. As agreed the customer is paying the service tax, hence company is out of the purview of service tax liability under GTA. In order to ensure or to check the tax compliance, the Central excise department is asking the details of the customers.

In the frame of Act, is there any section of case laws discussing about the power of authority to call for the details of customer /consignee. kindly through some light in this regards

regards,

ganeshan

[Ganeshan Kalyani]

Dear Sir,

I would further add to the query as regards the number of years the details can be asked for.

regards,

ganeshan

[Mahir S]

Section 14 of Central Excise Act, 1944 (‘CEA’) made applicable to service tax per Section 83 of the Finance Act 1994 (‘Act’), authorises any ‘Central Excise Officer’ empowered by the Central Government to ask for any evidence or to produce a document or any other thing in any inquiry which such officer is making for any of the purposes of this Act. It can be to produce documents or other things; may be for the production of certain specified documents or things or for the production of all documents or things of a certain description in the possession or under the control of the persons summoned/inquired.

Details of customers are called for the purpose of cross checking and verification regarding receipt and clearance of goods and also for availment of cenvat and payment of duty. For any inquiry, records are to be cross tallied with other parties records and therefore such information are called for by the department.

 

AI Summary

Document production powers allow tax authorities to compel customer details for cross verification and cenvat compliance. Section 83 applies Central Excise provisions to service tax inquiries, authorising empowered Central Excise Officers to require production of documents and evidence, including customer or consignee details, for cross checking receipts and clearances and for verifying cenvat availment and tax payment; such third party records are obtained to reconcile and verify the assessee's records during routine checking, special audit or search activities.