Service tax Audit

[Haresh Raithatha]

Dear sir

During the year 2016-17 preventive Department of Service tax has seized books of acccount and relevsnt records and issued show cause notice. We have preffered appeal on receipt of OIO from the Department. The appel is pending with the Authority. Now A.C. Service tax Audit has issued notice to carry out Service tax Audit for the same period...Can He do so?

Pl advise

Regard

[KASTURI SETHI]

Audit and Preventive are different wings of the department. Both have differrent functions assigned to them. Since your books of account and other Service Tax records are in the custody of Preventive Branch of the department, audit cannot be conducted. If the siezed records have been released, the audit will be conducted. Though goal of both is to unearth evasion, yet approach is different.

[DR.MARIAPPAN GOVINDARAJAN]

You may inform the audit party that the books of account have been seized by the preventive wing and seek their advice of the audit party in this regard.

AI Summary

Service tax audit access depends on custody of records; seized records must be released before full audit proceeds. Audit and preventive are distinct wings; when books and records remain seized by the preventive wing, an audit cannot be conducted requiring those documents. The audit should await release of seized records or coordinate with the preventive branch and may limit its scope to matters not needing the seized records.