Short payment of Service tax

[Murari Agrawal]

On the basis of data received from CBDT show cause notice has been issued for the period 2014-15 for recovery of alleged short payment of Service tax. The alleged suppressed taxable value is on account of charges received for manufacturing and supply of goods on Job Work basis. Inputs were received by challans under Rule 4(5)(a) of Cenvat Credit Rules,2004.

My queries are:

1) Am I correct to say that such activity is not liable to service tax being in the Negative List under section 66D of the Finance Act,1994.

2) Service tax return for Oct'14-March'15 period was filed on 17.04.2015 and even if extended period of limitation is invoked, is not the Show cause notice issued on 28.12.2020 barred by limitation.

3) The Show Cause Notice has been issued by the Assistant Commissioner and the direction is for showing cause to the same Officer. Can the notice server be the adjudicator.

Thanks

AI Summary

Notice Issued for Alleged Service Tax Shortfall on Job Work; Exemption and Timeliness Under Finance Act Questioned A show cause notice was issued for alleged short payment of service tax for the period 2014-15, relating to charges for manufacturing and supply on a job work basis. The queries raised were whether such activities fall under the negative list of the Finance Act, 1994, making them exempt from service tax, whether the notice is time-barred, and if the officer issuing the notice can also adjudicate. The reply clarified that if the job work amounts to manufacture, it is exempt, the notice is not time-barred due to COVID-19 extensions, and the issuing officer can adjudicate.