Compounded levy scheme was introduced in the Central Excise Law with the duty of Rs. 10000/- per machine per month in the year 1994. The scheme was simple with reasonable amount of duty, as such a no. of manufacturers of stainless steel patta-patti switched to it. Later on this duty was increased to Rs. 15000/- and then to Rs. 30000/-.

Beware if you are the one illicitly holding the government revenue!!! Government is all set to severely punish the people contravening the provisions of Finance Act, particularly, when one collect the service tax and fails to deposit the same to government exchequer.

The concept of reverse charge was also prevailing in the positive list era where certain cases/services were specified where the service recipient was made liable to pay the service tax instead of service provider. However concept of partial reverse charge was introduced w.e.f. 1.7.2012

Section 73 of the Finance Act, 1994 relates to the issue of show cause notice and confirmation of demand. Under existing provisions where the appellate authority finds that the demand is confirmable on merits, however, extended period is not invokable, then the entire demand raised in the show cause notice is quashed.

Even if you are taking an accident victim to hospital, you will have to pay service tax before getting him admitted to hospital. This statement has come true by virtue of the budget, 2013 as announced by hon’ble finance minister on 28.02.2013.

In previous budget, service tax law was shifted to negative list regime. Mega exemption notification no. 25/2012 ST dated 20.6.2012 was issued to prescribe the list of exempted services. In the current year budget, nominal changes have been done in this list. One such change has been done in the serial no. 21 of this notification which exempts certain services provided by a Goods transport agency. This article has tried to look into the implications of this amendment.

Under negative list regime, the service tax was introduced on restaurants, eating joints and mess which have licence to serve the liquor and facility of central heating or Air conditioning at any time during the previous year. However, this budget has removed the condition regarding the licence to serve the liquor.

Section 11A of the Central Excise Act, 1944 prescribes the issuance of show cause notice and other related provisions. In this section, sub-section 7A is inserted by Budget, 2013 to cover the cases of recurring nature where the show cause notices are issued on the exactly same grounds and allegations from time to time to the same assessees.

a new scheme has been introduced for defaulter – service tax assessees named as Service Tax Voluntary Compliance Encouragement Scheme. While announcing this scheme, it was said by hon’ble Finance Minister that there are nearly 17,00,000 registered assessees under service tax,

Exemptions and beneficial amendments are always prone to litigation – whether it is due to ambiguous language or due to creative interpretational skills of Revenue officers. Whatever be the reason, the departmental authorities are always less interested in extending the benefit of exemptions to the assessees. One such beneficial provision is being inserted in the negative list which exempts the processes that amount to manufacture or production from the levy under service tax. This piece of diction is about probable litigation on this item of negative list.