30 CHAPTER V SERVICE TAX

Amendment of Act 32 of 1994.

93. In the Finance Act, 1994, (A) in section 65B, (i) in clause (11),

(a) in sub-clause (i), after the words National Council for Vocational Training, the words or State Council for Vocational Training shall be inserted; (b) in sub-clause (ii), the word or occurring at the end shall be omitted; (c) sub-clause (iii) shall be omitted; (ii) in clause (40), after the words and figures "the Central Excise Act, 1944, the words, figures 10 1 of 1944. and brackets or the Medicinal and Toilet Preparations (Excise Duties) Act,1955 shall be inserted; 16 of 1955. (B) in section 66B, the Explanation shall be omitted; (C) after section 66B, the following section shall be inserted, namely:
Reference to section 66 to be construed as reference to section 66B.

66BA. (1) For the purpose of levy and collection of service tax, any reference to section 66 in the Finance Act, 1994 or any other Act for the time being in force, shall be construed as reference 15 32 of 1994. to section 66B thereof. (2) The provisions of this section shall be deemed to have come into force on the 1st day of July, 2012.; (D) in section 66D, in clause (d), in sub-clause (i), the word seed shall be omitted; (E) in section 73, after sub-section (2), the following sub-section shall be inserted, namely:(2A) Where any appellate authority or tribunal or court concludes that the notice issued under the proviso to sub-section (1) is not sustainable for the reason that the charge of, (a) fraud; or (b) collusion; or (c) wilful misstatement; or (d) suppression of facts; or (e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of service tax, has not been established against the person chargeable with the service tax, to whom the notice was issued, the Central Excise Officer shall determine the service tax payable by such person for the 30 period of eighteen months, as if the notice was issued for the offences for which limitation of eighteen months applies under sub-section (1).; (F) in section 77, in sub-section (1), for clause (a), the following clause shall be substituted, namely: (a) who is liable to pay service tax or required to take registration, fails to take registration in accordance with the provisions of section 69 or rules made under this Chapter shall be liable to 35 a penalty which may extend to ten thousand rupees;; (G) after section 78, the following section shall be inserted, namely: 25 20

Penalty for offences by director, etc., of company.

78A. Where a company has committed any of the following contraventions, namely: (a) evasion of service tax; or (b) issuance of invoice, bill or, as the case may be, a challan without provision of taxable 40 service in violation of the rules made under the provisions of this Chapter; or (c) availment and utilisation of credit of taxes or duty without actual receipt of taxable service or excisable goods either fully or partially in violation of the rules made under the provisions of this Chapter; or (d) failure to pay any amount collected as service tax to the credit of the Central Government 45 beyond a period of six months from the date on which such payment becomes due,

31 then any director, manager, secretary or other officer of such company, who at the time of such contravention was in charge of, and was responsible to, the company for the conduct of business of such company and was knowingly concerned with such contravention, shall be liable to a penalty which may extend to one lakh rupees.; 5 (H) in section 83, for the figure and letter 9A, the words, brackets, figures and letter "subsection (2) of section 9A shall be substituted; (I) in section 86, in sub-section (5), for the word, brackets and figure sub-section (3), the words, brackets and figures sub-section (1) or sub-section (3) shall be substituted; (J) in section 89, 10 (a) in sub-section (1), for clauses (i) and (ii), the following clauses shall be substituted, namely: (i) in the case of an offence specified in clauses (a), (b) or (c) where the amount exceeds fifty lakh rupees, with imprisonment for a term which may extend to three years: Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for a term of less than six months; 15 (ii) in the case of the offence specified in clause (d), where the amount exceeds fifty lakh rupees, with imprisonment for a term which may extend to seven years: Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for a term of less than six months; 20 (iii) in the case of any other offences, with imprisonment for a term, which may extend to one year.; (b) for sub-section (2), the following sub-section shall be substituted, namely: (2) If any person is convicted of an offence punishable under 25 (a) clause (i) or clause (iii), then, he shall be punished for the second and for every subsequent offence with imprisonment for a term which may extend to three years; (b) clause (ii), then, he shall be punished for the second and for every subsequent offence with imprisonment for a term which may extend to seven years.; (K) after section 89, the following sections shall be inserted, namely:

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2 of 1974.

90.(1) An offence under clause (ii) of sub-section (1) of section 89 shall be Cognizance of offences. cognizable. (2) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, all offences, except the offences specified in sub-section (1), shall be non-cognizable and bailable. 91. (1) If the Commissioner of Central Excise has reason to believe that any person has Power to committed an offence specified in clause (i) or clause (ii) of sub-section (1) of section 89, he may, arrest. by general or special order, authorise any officer of Central Excise, not below the rank of Superintendent of Central Excise, to arrest such person. (2) Where a person is arrested for any cognizable offence, every officer authorised to arrest a person shall, inform such person of the grounds of arrest and produce him before a magistrate within twenty-four hours.

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40

2 of 1974.

(3) In the case of a non-cognizable and bailable offence, the Assistant Commissioner, or the Deputy Commissioner, as the case may be, shall, for the purpose of releasing an arrested person on bail or otherwise, have the same powers and be subject to the same provisions as an officer in charge of a police station has, and is subject to, under section 436 of the Code of Criminal Procedure, 1973. (4) All arrests under this section shall be carried out in accordance with the provisions of the Code of Criminal Procedure, 1973 relating to arrests.; (L) in section 95, after sub-section (1-I), the following sub-section shall be inserted, namely:

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2 of 1974.

32 of 1994.

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(1J) If any difficulty arises in giving effect to section 93 of the Finance Act, 2013, in so far as it relates to amendments made by the Finance Act, 2013 in Chapter V of the Finance Act, 1994, the Central Government may, by an order published in the Official Gazette, not inconsistent with the provisions of this Chapter, remove the difficulty:

32 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, 2013 receives the assent of the President.; (M) after section 98, the following section shall be inserted, namely:
Special provision for taxable services provided by Indian Railways.

99. Notwithstanding anything contained in section 66, as it stood prior to the 1st day of July, 2012, no service tax shall be levied or collected in respect of taxable services provided by the 5 Indian Railways during the period prior to the 1st day of July, 2012, to the extent notices have been issued under section 73, up to the 28th day of February, 2013..

CHAPTER VI

SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013

94. This Scheme may be called the Service Tax Voluntary Compliance Encouragement Scheme, 10 2013. 95. (1) In this Scheme, unless the context otherwise requires, (a) Chapter means Chapter V of the Finance Act, 1994; (b) declarant means any person who makes a declaration under sub-section (1) of section 97; (c) designated authority means an officer not below the rank of Assistant Commissioner of 15 Central Excise as notified by the Commissioner of Central Excise for the purposes of this Scheme; (d) prescribed means prescribed by rules made under this Scheme; (e) tax dues means the service tax due or payable under the Chapter or any other amount due or payable under section 73A thereof, for the period beginning from the 1st day of October, 2007 and ending on the 31st day of December, 2012 including a cess leviable thereon under any other 20 Act for the time being in force, but not paid as on the 1st day of March, 2013. (2) Words and expressions used herein and not defined but defined in the Chapter or the rules made thereunder shall have the meanings respectively assigned to them in the Chapter or the rules made thereunder.
32 of 1994.

Definitions.

96. (1) Any person may declare his tax dues in respect of which no notice or an order of determination 25 Person who may make under section 72 or section 73 or section 73A of the Chapter has been issued or made before the 1st declaration of day of March, 2013: tax dues. Provided that any person who has furnished return under section 70 of the Chapter and disclosed his true liability, but has not paid the disclosed amount of service tax or any part thereof, shall not be eligible to make declaration for the period covered by the said return: 30 Provided further that where a notice or an order of determination has been issued to a person in respect of any period on any issue, no declaration shall be made of his tax dues on the same issue for any subsequent period. (2) Where a declaration has been made by a person against whom, (a) an inquiry or investigation in respect of a service tax not levied or not paid or short-levied or 35 short-paid has been initiated by way of (i) search of premises under section 82 of the Chapter; or (ii) issuance of summons under section 14 of the Central Excise Act, 1944, as made applicable to the Chapter under section 83 thereof; or (iii) requiring production of accounts, documents or other evidence under the Chapter or the 40 rules made thereunder; or (b) an audit has been initiated, and such inquiry, investigation or audit is pending as on the 1st day of March, 2013, then, the designated authority shall, by an order, and for reasons to be recorded in writing, reject such declaration.
Procedure for 97. (1) Subject to the provisions of this Scheme, a persom may make a declaration to the designated 45 making authority on or before the 31st day of December, 2013 in such form and in such manner as may be prescribed. declaration and payment (2) The designated authority shall acknowledge the declaration in such form and in such manner as of tax dues. 1 of 1944.

may be prescribed.

(3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent. of the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority. 50