Form A2 Non-submission Demand

[Murali Chakravarthi]

I am in receipt of demand notice from ST dept for non-submission of Form A2 for services to SEZ. SEZ customers express their inability to submit Form A2. Request Kindly share non-submission of Form A2 to department is procedural lapse and hence minimum penalty levied.
I am planning to file Com(appeals) in this issue. Pl give expert opinion.

[KASTURI SETHI]

You are required to first exhaust departmental channel. File reply to the demand notice. The case will be decided by the Assistant/Deputy Commissioner. If demand is confirmed along with interest and penalty is imposed, you should file appeal against that Adjudication Order (Order-in-Original) with the Commissioner(Appeals). At this stage you cannot file appeal with the Commissioner(Appeals). Notice is an opportunity to defend yourself with evidence. Do not treat it as procedural lapse.

AI Summary

Party Faces Demand Notice for Not Submitting Form A2 for SEZ Services; Expert Recommends Initial Response Before Appeal. A party received a demand notice from the Service Tax department for not submitting Form A2 related to services provided to SEZ customers, who are unable to submit the form. The party seeks advice on whether this is a procedural lapse and plans to appeal. An expert advises that the party must first respond to the demand notice and the case will be decided by the Assistant/Deputy Commissioner. If the demand is confirmed with penalties, an appeal can be filed with the Commissioner(Appeals). The notice should not be treated as a mere procedural lapse.