Last day to issue SCN and Order for F.Y. 2015-16

[Vineet Agrawal]

Hello,

Can you please tell me the last day of issue of Service Tax Show Cause Notice and Order for FY 2015-16?

My SCN is dated 27-09-2020 while order is dated 15.11.2023

[KASTURI SETHI]

What is the date of filing ST-3 return for the period from April, 15 to Sept.16 and Oct.15 to March, 16 ?

[KASTURI SETHI]

Dear Querist,

Regarding the time limit for adjudication of SCN, go through the following information :-

(i) TIME LIMIT FOR ADJUDICATION

Section 73 (4B) of the Finance Act, 1994

[(4B) The Central Excise Officer shall determine the amount of service tax due under sub-section (2)—

(a) within six months from the date of notice where it is possible to do so, in respect of cases [falling under] sub-section (1);

(b) within one year from the date of notice, where it is possible to do so, in respect of cases falling under the proviso to sub-section (1) or the proviso to sub-section (4A)].

The wording, "Where it is possible to do so ' is a hurdle for you.

(2) Adjudication — Time limit for finalisation of

Circular No. 20/92-CX.6, dated 21-12-1992

Board's circulars have no statutory force. Instructions are also directory only.

3. De facto, time limit for adjudication does not exist.

4. There are so many instances where SCNs have been adjudicated after a gap of 15-20 years from the date of SCN.

[KASTURI SETHI]

As per Section 73 (6) of the Finance Act, the SCN is NOT time-barred.

AI Summary

Adjudication time limit may be directory; SCNs can be proceeded despite long delays in issuance. Time limit for adjudication of service tax SCNs sets presumptive windows for finalisation but is qualified by the phrase 'where it is possible to do so,' limiting strict application. Board circulars are directory and lack statutory force, so circular timelines do not bar adjudication. In practice, SCNs and orders have been finalised after long delays; return filing dates for the relevant periods remain material. A statutory provision indicates that issuance of an SCN is not per se time barred in specified circumstances, permitting proceedings despite delayed adjudication.