Issue of SCN - Time limit - Taxability of job work

[BAL KRISHAN GARG]

Dear all members , I will be highly oblidge if somebody can clarify the matter related to service tax . Actually , Show cause notice demanding Tax have been served on the assessee during the last week of Sep.,2009 and accordingly reply have been filed duly acknowledged on 9th Nov.,2009 after getting the extension of time . Now the question arise in my mind that Is there any time limit for the disposal of the case within the department as no further question have been asked till date from the assessee .Almost 4 months have already been passed from the date of reply submitted to the department . Further whether there is any responsibility of the department to give its clarification regarding the issue which was not taxable from the service tax angel in my reply submitted to the department. Please clarify the legal position regarding the time limit if exist to further action and whether the department is bound to give it is writing that the alleged job work is not taxable in the service tax at all . Thanks to all members. ( BAL KRISHAN GARG ) e-mail id : [email protected]

[CA SOHRABH JINDAL]

Dear Bal Krishan ji, under service tax law, there is no time limit for disposal of the case. u have filed the reply in time. now a seperate notice will be issued to u ( may be after 6 months or one year) giving u a opportunity of personal hearing. be ready with all your working papers. after personal hearing, a final order will be passed. if u r satisfied with the order then OK and if u not then u may file an appeal.

[RAJESH MANGAL AGRAWAL]

In my opinion there is no hard & first rule for disposal of the case from the date of SCN. However there is some departmental clarification so as to to dispose the case within 1 year from the end of the month of issuance of SCN. Further in my opinion Dept will issue PH (Personal hearing)date invariably if demanded in the reply to SCN and also generally in all the cases. Further Dept. is not bound to communicate its finding during the process of adjudication and is bound to pass a speaking order.

[Surender Gupta]

Department is expected to issue order in original as soon as possible after receiving the reply to the show cause notice and after extended the opportunity of personal hearing. But, there is upper statutory limit. Department may take any time to pass the order in original. Further, the response to your reply and the view of the department on the questions raised in the reply, may be reflected in the order in original. Therefore, you may wait and watch the situation and act accordingly in due course.

[Rakesh Chitkara]

As rightly stated by all the 3 panelists, there is no time limit for passing the final adjudication order. Normally, department goes by seniority in age of the case. Older cases first, unless the amount is quite large, which may be taken out of turn. In case, you are in a hurry to get the final order, write for it. They may then pass it out of turn. But do it only if you are 100% certain that it is going to be in your favour. 95% of such orders passed by authorities are against the party. Are you in a tearing hurry to file appeal before the next appellate authority, that too by making a pre-deposit ?

AI Summary

Time limit for adjudication: no statutory deadline, department may take indefinite time to issue final order after SCN. No statutory deadline governs disposal of a show cause notice in service tax matters; authorities may take an indefinite period to issue a final adjudication order, although some offices aim to process cases within a year as a matter of practice. The department is not required to give interim written findings and typically records its view in the final order. Taxpayers are generally entitled to a personal hearing and a speaking order, may request expedited handling, and may appeal adverse final orders.