Settlement Commission embraces Service Tax cases
By TIOL News Service
NEW DELHI, MAR 17, 2012: THE art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the least possible amount of hissing – Jean Baptiste Colbert.
Long ago, when Settlement Commission was born, the year 1999 to be precise, a lot many from the intelligentsia asked as to why Service Tax cases were not covered under the purview of this august body.
At that time, the justification offered was that since the mandatory admission of duty liability was Rupees two lakhs and above, not many of the service tax assessees could derive any benefit out of this forum.
Over the years, with the service tax dispute resolution scheme also fading into oblivion and the Service Tax assessees growing manifold coupled with gargantuan service tax evasion cases being reported, it was high time that the doors be thrown open of the Settlement Commission to such delinquent assessees. In fact, today the entry limit to Settlement is an admitted duty/tax liability of Rs.3 lakhs.
The Finance Minister did not let go of this sentiment and, therefore, in his Budget Speech, (page 29), mentioned the following –
“169. Revision Application Authority and Settlement Commission are being introduced in Service Tax to help resolve disputes with far greater ease.”
The legal backing for this coverage is found in clause 143 of the Finance Bill, 2012 and reads thus –
“(j) provide for the settlement of cases, in accordance with sections 31, 32 and 32A to 32P (both inclusive), in Chapter V of the Central Excise Act, 1944 as made applicable to service tax vide section 83.”
Needless to mention, section 83 is being amended too so as to incorporate the aforesaid sections 31, 32, 32A to 32P (both inclusive) under its tutelage. While doing so, the provisions of section 35EE of the CEA, 1944 have also been added so as to import the concept of “Revision by Central Government” in Service Tax matters.
The roller-coaster ride begins in a couple of months!