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Circular No. 76/ 6/ 2004 – ST
 3rd March,  2004

F. No. 137/6/2004-CX-4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

Subject:  Clarification sought by PHD Chamber of Commerce and Industry on various difficulties being faced by Service Tax assessees – Regarding

              The Board has received representation from PHD Chamber of Commerce and Industry with regard to general difficulties        being faced by Service Tax assessees.

              The following points are, therefore, further clarified:-  

1. Penalty for each service under section 75A for delay in taking single registration for more than one taxable service; &
2. Penalty for each service under section 77 for delay in filing of return by assessee providing more than one taxable service
Clarification: As per statutory provisions only one penalty as prescribed can be imposed.
3. Delay in issue of PAN based 15 digit STC/STP Code and difficulties faced by assessees for seeking STC/STP.
Clarification: The forms for registration for issue of 15 digit STC/STP code are very simple and do not create any ambiguity. If the allotment has not been done within three working days in terms of Circular 35/3/2001-CX-4 dated 27/8/2001, the assessees may bring the same to the notice of the jurisdictional Assistant Commissioner / Deputy Commissioner / Commissioner of Central Excise who shall immediately issue necessary directions.
4. Insisting on payment of penalty before registration
Clarification: The circular No. 72/2/2004-ST dated 2nd January, 2004 provides that jurisdictional officer shall accept the declaration given by the assessee and as per the Rule 4(5) of the Service Tax Rules, 1994 grant the registration within seven days.
5. Issue of Show Cause Notice for petty amounts.
  Clarification : The matter has been considered by the Board and it has been decided that for an amount of Rs. One Thousand and below towards short payment/non-payment of service tax, the jurisdictional officer should give an opportunity and allow the assessee to deposit the amount of service tax not paid alongwith interest, if any.   In case the service provider pays the service tax alongwith interest within period of one month of the default in payment being pointed out, recourse should be made to section 80 of Finance Act, 1994 as amended provided the assessee fulfils the conditions therein. However, in other cases of failure on behalf of Service provider to pay the service tax and interest, if any, normal procedure shall be followed.
6. The field formations may suitably be informed.
7. A suitable trade notice may be issued.
8. Hindi version will follow.

Manish Mohan
 Under Secretary to the Government of India