Revision of Monetary limits for issuing Service tax notice by officers

By | October 5, 2016

Revision of Monetary limits for issuing Service tax notice by officers

Central Government vide Notification No. 44/2016-Service Tax, Dated: September 28, 2016 has amended the adjudication power of officers. The revised limits are as under:

S. No. Rank of the Central Excise Officer Amount of service tax or CENVAT credit specified in a notice issued under the Finance Act 1994. (Amended Limits)

w.e.f. 28th September 2016
Amount of service tax or CENVAT credit specified in a notice issued under the Finance Act 1994. (Prior Limits)

Prior to 28th September 2016
(1) Superintendent Not exceeding Rs. 10 lakhs (excluding the cases relating to taxability of services or valuation of services and cases involving extended period of limitation). Not exceeding Rs. 1 lakh (excluding the cases relating to taxability of services or valuation of services and cases involving extended period of limitation.)
(2) Assistant Commissioner or Deputy Commissioner Not exceeding Rs. 50 lakhs(except cases where Superintendents are empowered to adjudicate). Not exceeding Rs. 5 lakhs(except cases where Superintendents are empowered to adjudicate.)
(3) Joint Commissioner or Additional Commissioner Rs. 50 lakhs and above but not exceeding Rs. 2 crores. Above Rs. 5 lakhs but not exceeding Rs. 50 lakhs (JC) & Above Rs. 20 lakhs but not exceeding Rs. 50 Lakhs (AC)
(5) Commissioner Without limit. Without limit.

[Notification No. 44/2016-Service Tax, Dated: September 28, 2016]

Comments: The increase in monetary limits will help in disposal of cases at departmental level itself. E.g. Cases upto Rs. 2 crores will be dealt at AC/ JC level itself. However, this also means insertion of one more stage for adjudication as some of them are expected to go to CESTAT, which means more time for an appeal to reach the Tribunal as well as Pre-deposit impact.

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