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78. Penalty for suppressing value of taxable service
   Provided that where any service tax has not been levied or paid or has been short levied or short paid or erroneously refunded by reason of-
  a) fraud; or
  b) collusion; or
  c) willful mis-statement; or
  d) suppression of facts; or
  e)  contravention of any of the provisions of this Chapter or the rules made there under with intent to evade payment of service tax
  The person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of Section 73, shall also be liable to pay a penalty, in addition to such service tax and interest thereon, if nay, payable by him, which shall not be less than, but which shall not exceed twice, the amount of service tax so not levied, or paid or short levied or short paid or erroneously refunded;
  Provided that where such service tax as determined under sub-section( 2) of section 73 and the interest payable thereon under section (75), is paid within 30 days form the date of communication of order of the Central Excise officer determining such service tax, the amount of penalty liable to be paid by such person shall be twenty five per cent of the service tax so determined;
  Provided further that the benefit of reduced penalty under the first provision shall be available only if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso.
  Provided also that in case where the service tax is determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or as the case may be the Court, then, for the purposes of this section, the service tax as reduced or increased, as the case may be, shall be taken into account.
  Provided also that in case where the service tax is determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or as the case may be the Court, then, for the purposes of this section, the service tax as reduced or increased, as the case may be, shall be taken into account.
  Explanation : For the removal of doubts, it is hereby declared that -
  1) the provisions of this section shall also apply to cases in which an order determining the service tax under sub-section (2) of section 73 relates to notices issued prior to the date on which the Finance Bill, 2003 receives the ascent of the President;
  2) the amount paid to the credit of Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.
79. Omitted***
80. Penalty not to be imposed in certain cases
  Notwithstanding anything contained in the provisions of section 76, section 77, or section 78, no penalty shall be imposable on the assessee for any failure referred to in said provisions, if the assessee proves that there was reasonable cause for the said failure.
81. Omitted****
82. Power to search premise
  1) f the Commissioner of Central Excise has reason to believe that any documents or book or things which in his opinion will be any useful for or relevant to proceedings under this Chapter are secreted in any place, he may authorize any Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise to search for and seize or may himself search for and seize, such documents or books or things.
  2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches, shall, so far as may be, apply or searches under this section as they apply to searches under that Code.
83. Application of certain provisions of Act 1 of 1944
  The provisions of the following section of the Central Excise Act, 1944 ( 1 of 1944), as in force from time to time, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise: -
9C, 9D, 11, 11B, 11BB, 11C, 11D, 12, 12A, 12B. 12C, 12D, 12E, 14, 15, 33A, 35F to 35-O (both inclusive), 35Q, 36, 36A, 36B, 37A, 37B, 37C, 37D and 40.
83A Power of adjudication.
  Where under this Chapter or the rules made thereunder any person is liable to a penalty,such penalty may be adjudged by the Central Excise Officer conferred with such power as the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act,1963, may, by notification in the Official Gazette, specify;
84. Revision of orders by the Commissioner of Central Excise
1) The Commissioner of Central Excise may call for the record of a proceeding under this Chapter in which an adjudicating authority subordinate to him has passed any decision or order and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit.
  2) No order, which is prejudicial to the assessee shall be passed under this section unless the assessee has been given an opportunity of being heard.
  3) The Commissioner of Central Excise shall communicate the order passed by him under sub-section (1) to the assessee, such adjudicating authority and the Board.
  4) No order under this section shall be passed by the Commissioner of Central Excise in respect of any issue if an appeal against such is pending before the Commissioner of Central Excise (Appeals).
  5) No order under this section shall be passed after the expiry of two years from the date on which the order sought to be revised has been passed.
85. Appeals to the Commissioner of Central Excise (Appeals).
  1) Any person aggrieved by any decision or order passed by an adjudicating authority
subordinate to the Commissioner of Central Excise may appeal to the Commissioner of Central Excise (Appeals) 
  2) Every appeal shall be in the prescribed from and shall be verified in the prescribed manner.
  3) An appeal shall be presented within three months from the date of receipt of the decision or order of such adjudicating authority relating to service tax, interest or penalty under this Chapter:
Provided that the Commissioner of Central Excise (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.
  4) The Commissioner of Central Excise (Appeals) shall hear and determine the appeals and, subject to the provisions of this Chapter, pass such orders as he thinks fit and such orders may include an order enhancing the service tax, interest or penalty :
Provided that an order enhancing the service tax, interest or penalty shall not be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement.
  5) Subject to the provisions of this Chapter, in hearing the appeals and making orders under this section, the Commissioner of Central Excise (Appeals) shall exercise the same powers and follow the same procedure as he exercise and follows in hearing the appeals and making orders under the Central Excise Act, 1944 (1 of 1944).
86. Appeals to Appellate Tribunal
1) Any assessee aggrieved by an order passed by a Commissioner of Central Excise under Section 73 or Section 83 or section 84, or an order passed by a Commissioner of Central Excise (Appeals) under section 85, may appeal to the Appellate Tribunal against such order.
2) The Board may, if it objects to any order passed by the Commissioner of Central Excise under Section 73 or Section 83 or section 84, direct the Commissioner of Central Excise to appeal to the Appellate Tribunal against the order.
2A) The Commissioner of Central Excise may, if he objects to any order passed by the Commissioner of Central Excise (Appeals) under section 85, direct any Central Excise Officer to appeal on his behalf to the Appellate Tribunal against the order].
3) Every appeal under sub-section (1) [or sub-section (2) or sub-section (2A)] shall be filed within three months of the date on which the order sought to be appealed against is received by the assessee, the Board or by the Commissioner of Central Excise, as the case may be.
4) The Commissioner of Central Excise or any Central Excise Officer subordinate to him or the assessee, as the case may be, on receipt of a notice that an appeal against the order of the Commissioner of Central Excise or the Commissioner of Central Excise (Appeals) has been preferred under sub-section (1) or sub-section (2) or sub-section (2A) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within forty-five days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Commissioner of Central Excise or the Commissioner of Central Excise (Appeals), and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3).
5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4) if it is satisfied that there was sufficient cause for not presenting it within that period.
6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, irrespective of the date of demand of service tax and interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,-
  a) Where amount of service tax and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is five lakh rupees or less, one thousand rupees;
  b) Where amount of service tax and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates more than five lakh rupees but not exceeding fifty lakh rupees, five thousand rupees
  c) Where amount of service tax and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is more than fifty lakh rupees, ten thousand rupees
    Provided that no fee shall be payable in case of an appeal referred to in sub-section (2) or sub-section (2A) or a memorandum of cross objections referred to in sub-section (4).
6A) Every application made before the Appellate Tribunal,-
  a) In an appeal for grant of stay or for rectification of mistake or any other purpose; or
  b) For restoration of appeal or an application,
  Shall be accompanied by a fee of five hundred rupees:
   Provided that no fee shall be payable in case of an application filed by a Commissioner of Central Excise or Assistant Commissioner of Central Excise or or Deputy Commissioner of Central Excise, as the case may be, under this sub-section
7)Subject to the provisions of this Chapter, in hearing the appeal and making orders under this section, the Appellate Tribunal shall exercise the same powers and follow the same procedure as it exercise and follows in hearing the appeals and making orders under the Central Excise Act, 1944 (1 of 1944).
87. Recovery of any amount due to Central Government.
  Where any amount payable by a person to the credit of the Central Government under any of the provisions of this Chapter or of the rules made thereunder is not paid, the Central Excise Officer shall proceed to recover the amount by one or more of the modes mentioned below:
  a) the Central Excise Officer may deduct or may require any other Central Excise Officer or any officer of customs to deduct the amount so payable from any money owing to such person which may be under the control of the said Central Excise Officer or any officer of customs;
  b)  
    i) the Central Excise Officer may, by notice in writing, require any other person from whom money is due or may become due to such person, or who holds or may subsequently hold money for or on account of such person, to pay to the credit of the Central Government either forthwith upon the money becoming due or being held or at or within the time specified in the notice, not being before the money becomes due or is held, so much of the money as is sufficient to pay the amount due from such person or the whole of the money when it is equal to or less than that amount;
    ii) every person to whom a notice is issued under this section shall be bound to comply with such notice, and in particular, where any such notice is issued to a post office, banking company or an insurer, it shall not be necessary to produce any pass book, deposit receipt, policy or any other document for the purpose of any entry, endorsement or the like being made before payment is made, notwithstanding any rule, practice or requirement to the contrary;
    iii)  in a case where the person to whom a notice under this section is sent, fails to make the payment in pursuance thereof to the Central Government, he shall be deemed to be an assessee in default in respect of the amount specified in the notice and all the consequences of this Chapter shall follow;
  c) the Central Excise Officer may, on an authorisation by the Commissioner of Central Excise, in accordance with the rules made in this behalf, distrain any movable or immovable property belonging to or under the control of such person, and detain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distress or keeping of the property, remains unpaid for a period of thirty days next after any such distress, may cause the said property to be sold and with the proceeds of such sale, may satisfy the amount payable and the costs including cost of sale remaining unpaid and shall render the surplus amount, if any, to such person;
  d) the Central Excise Officer may prepare a certificate signed by him specifying the amount due from such person and send it to the Collector of the district in which such person owns any property or resides or carries on his business and the said Collector, on receipt of such certificate, shall proceed to recover from such person the amount specified thereunder as if it were an arrear of land revenue.
88. ***
89. *** (Omitted)
90. ****
91. *****
92. ******
93. Power to grant exemption from service tax
  1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax levy able thereon.
  2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt any taxable service of any specified description from the payment of whole or any part of the service tax levy able thereon, under circumstances of exceptional nature to be stated in such order.]
94. Power to make rules
  1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.
  2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: -
    a) collection and recovery of service tax under sections 66 and 68;
    aa) the determination of amount and value of taxable service under section 67;
    b) the time and manner and the form in which application for registration shall be made under sub-sections (1) and (2) of section 69;
 
    c) the form, manner and frequency of the returns to be furnished under sub-sections (1) and (2) of section 70;
    cc) the manner of provisional attachment of property under subsection (1) of section 73C;
    ccc) publication of name of any person and particulars relating to any proceeding under sub-section (1) of section 73D;
    d) the form in which appeal under section 85 or under sub-section (6) of section 86 may be filed and the manner in which they may be verified;
    e) the manner in which the memorandum of cross objections under sub-section (4) of section 86 may be verified;
    ee) the credit of service tax paid on the services consumed for providing a taxable service in case where the services consumed and the service provided fall in the same category of taxable service;
    eee) the credit of service tax paid on the services consumed or duties paid or deemed to have been paid on goods used for providing a taxable service;
    eeee) the manner of recovery of any amount due to the Central Government under section 87;
    f) provisions for determining export of taxable services;
    g) grant of exemption to, or rebate of service tax paid on, taxable services which are exported out of India;
    h) rebate of service tax paid or payable on the taxable services consumed or duties paid or deemed to have been paid on goods used for providing taxable services which are exported out of India;
    hh) ebate of service tax paid or payable on the taxable services used as input services in the manufacturing or processing of goods exported out of India under section 93A;
    i) any other matter which by this Chapter is to be or may be prescribed.;
  3) The power to make rules conferred by this section shall on the first occasion of the exercise thereof include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Chapter come into force.
  4) Every rule made under this Chapter and every notification issued under section 93 shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.
95. Power to remove difficulties
  1) If any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance Act,2002, the Central Government may, by order published in the Official Gazette, which is not inconsistent with the provisions of this Chapter remove the difficulty:
    Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of the Finance Act,2002 incorporating such taxable services in this Chapter come into force.
1A) f any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance Act, 2003, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of two years from the date on which the Finance , 2003 incorporating such taxable services in this chapter come into force.
 
  1B) If any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance (No. 2) Act, 2004, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty :
Provided that no such order shall be made after the expiry of a period of two years from the date on which the Finance (No. 2) Bill, 2004 receives the assent of the President.
 
  1c) If any difficulty arises in respect of implementing, classifying or assessing the value of any taxable service incorporated in this Chapter by the Finance Act, 2006, the Central Government may, by order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of one year from the date on which the Finance Bill, 2006 receives the assent of the President.
 
  2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of the Parliament.
96. Consequential amendment
  n the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), in the Schedule, after entry 7 relating to the Central Excise Act, 1944 (1 of 1944), the following entry shall be inserted, namely:-
  7A. Chapter V of the Finance Act, 1994.
96A. Advance Rulings
     Introduction
     Provision for Advance Act, 1994
     Service Tax Rules, 1993
     Application Form

      
 

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