F.No 137/08/2013-Service Tax
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Service lax Wing
New Delhi the 22nd July, 2016
Subject: Permission to pay service tax through non electronic modes
Rule 6(2) of the Service Tax Rules, 1994 stipulate that while every assessee shall pay service tax electronically through internet banking, the jurisdictional Deputy/Assistant Commissioner, may, for reasons to be recorded in writing, allow the assessee to deposit service tax by any other mode.
2. Inspite of these provisions, the Department of Posts have informed that in certain jurisdictions, officers are not allowing them permission to pay by cheque. I am directed to inform you that the Board has taken a serious view of such refusals to exercise discretion, even in deserving cases. The Department of Posts has been refused permission by the Controller General of Accounts to open a current account, which would have enabled electronic payment. Under the circumstances they can make a payment by cheque only. The assessee in question is a Government department and the question of jeopardy to revenue cannot exist. Refusing to give them permission amounts to expecting them to comply with the law while simultaneously preventing them from doing so. The purpose of giving discretion in the law gets defeated.
3. Accordingly whether it is the Department of Posts or any other assessee, it is directed that the discretion vested in the jurisdictional Deputy/Assistant Commissioner under rule 6(2) of the Service Tax Rules, 1994, should be exercised judiciously and rationally. The supervisory officers should, from time to time, check such exercises of discretion so that there are no unwarranted refusals.
(Dr. Gaurav Mittal)
Officer on Special Duty
Service Tax Wing, CBEC