[TO BE PUBLISHED IN
THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)]
Government
of India
Ministry
of Finance
(Department
of Revenue)
New
Delhi, the 29th May, 2012
Notification No.
17/2012 - Service Tax
G.S.R. (E).-
In exercise of the powers conferred by clause (i) of
sub-section (2) of section 94 of the Finance Act, 1994 (32 of 1994)(hereinafter
referred to as “the Act”) read with sub-section (2) of section 9A of the
Central Excise Act, 1944 (1 of 1944), made applicable to service tax vide
section 83 of the Act, the Central
Government hereby makes the following rules, namely :
1. Short title and commencement.-
(1) These rules may be called the Service Tax
(Compounding of Offences) Rules, 2012.
(2) They shall come into force on the date of
publication in the Official Gazette.
2. Definitions.- In these rules,
unless the context otherwise requires,-
(a) “Act” means Chapter V of the Finance Act, 1994
(32 of 1994);
(b) “applicant” means any
assessee or any other person, but shall not include
officers of Central Excise appointed for exercising the powers under the Act
under rule 3 of the Service Tax Rules, 1994;
(c) “compounding
authority” means the Chief Commissioner of Central Excise, having jurisdiction
over the place where the offence under the Act, have been or alleged to have
been committed;
(d) “Excise Act” means the Central Excise Act,
1944 (1 of 1944);
(e) “form” means the form
appended to these rules;
(f) “reporting authority” means, the Commissioner
of Central Excise or Commissioner of Service Tax, having jurisdiction over the
place where the offences under the Act have been or are alleged to have been
committed or any other officer as may be authorised
in this regard by the Chief Commissioner of Central Excise having jurisdiction
over the place where such offences under the Act, have been or are alleged to
have been committed;
(g) “section” means a
section of the Act; and
(h) words and expressions
used in these rules and not defined but defined in the Act or Central Excise
Act, 1944 shall have the respective meanings assigned to them in the Act or
Central Excise Act, 1944, as the case may be.
3. Form and manner of application.- An applicant may,
either before or after the institution of prosecution, make an application
under sub-section (2) of section 9A of
Excise Act, made applicable to service tax vide section 83 of the Act,
in the form appended to these rules, to the compounding authority to compound
the offence.
Explanation.- Where an offence
under the Act has been committed at more than one place falling under the
jurisdiction of more than one compounding authority, then the Chief
Commissioner of Central Excise having jurisdiction over such place where the
amount of service tax evaded is more than the others, shall be the competent
authority.
4. Procedure on receipt of application under rule 3.- (1) On receipt of an
application under rule 3, the compounding authority shall call for a report
from the reporting authority with reference to the particulars furnished in the
application, or any other information, which may be considered relevant for
examination of such application.
(2) Such report shall
be furnished by the reporting authority within a period of one month or within
such extended period as may be allowed by the compounding authority, from the
date of receipt of communication from the compounding authority.
(3) The compounding
authority, after taking into account the contents of the said application, may,
by order, either allow the application indicating the compounding amount in
terms of rule 5 and grant him immunity from prosecution in terms of rule 6 or
reject such application:
Provided
that application shall not be rejected unless an opportunity has been given to
the applicant of being heard and the grounds of such rejection are mentioned in
such order:
Provided
further that application shall not be allowed unless the service tax, penalty
and interest liable to be paid have been paid for the case for which
application has been made.
(4) A copy of every
order under sub-rule (3) shall be sent to the applicant.
(5) The applicant
shall, within a period of thirty days from the date of receipt of order under
sub-rule (3) allowing the compounding of offences, pay the compounding amount,
as ordered to be paid by the compounding authority and shall furnish the proof
of such payment to the compounding authority.
(6) The compounding
amount once paid shall not be refunded except in cases where the court rejects
grant of immunity from prosecution.
(7) The applicant
shall not claim, as of right, that his offence be compounded.
5. Fixation of the
compounding amount.
- For the purpose of compounding of offences under the provisions of the Act,
the compounding amount shall be as provided in the following Table, namely:-
Table
S.No. |
Offence |
Compounding
amount |
(1) |
(2) |
(3) |
1. |
Offence
specified under section 89 (1)(a) of the Act |
Up to
fifty per cent. of the amount of service tax
evasion, subject to minimum of ten per cent. of amount of tax evaded |
2. |
Offence
specified under section 89 (1)(b) of the Act |
Upto fifty per cent. of the amount of CENVAT Credit wrongly taken or utilised, subject to minimum of ten per cent. of said amount. |
3. |
Offence
specified under section 89 (1)(c) of the Act |
Rupees
fifty thousand for the first offence and to be increased by hundred per cent.
of this amount for each subsequent offence |
4. |
Offence
specified under section 89 (1)(d) of the Act |
Upto twenty five per
cent. of the amount of service tax not deposited
subject to a minimum of two per cent. for each month
for which the amount has not been so deposited. |
Provided
that if a person has committed offences falling under more than one category
specified above and where the amount of service tax evasion or amount of CENVAT
Credit wrongly taken or utilised is the same for all
such offences, the compounding amount, in such cases, shall be the amount as
determined for the offence for which a higher compounding amount has been
prescribed.
6. Power of
compounding authority to grant immunity from prosecution. - The compounding
authority, if he is satisfied that any person who has made the application for
compounding of offence under these rules has co-operated in the proceedings
before him and has made full and true disclosure of facts relating to the case,
grant such person, subject to such conditions as he may think fit to impose,
immunity from prosecution for any offence under the Act, with respect to the
case covered by the compounding of offence.
7. Withdrawal of immunity from prosecution in certain
conditions.
- (1) An immunity granted to a person under rule 6 shall stand withdrawn if
such person fails to pay any sum specified in the order of compounding passed
by the compounding authority, under sub-rule (3) of rule 4 within the time
specified in the order or fails to comply with any other condition subject to
which the immunity was granted and thereupon the provisions of the Act, shall
apply as if no such immunity had been granted.
(2) An immunity
granted to a person under sub-rule (1) may, at any time, be withdrawn by the
compounding authority, if he is satisfied that such person had, in the course
of the compounding proceedings, concealed any material particulars, or had
given false evidence, and thereupon the
person may be tried for the offence with respect to which immunity was granted
or for any other offence that appears to have been committed by him in
connection with the compounding proceedings and, thereupon, the provisions of
the Act, shall apply as if no such immunity had been granted.
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FORM
(See
rule 3)
Application for
Compounding of Offence
1. Full Name and
permanent address of the applicant:
2. Address for
communication:
3. (i) Permanent Account Number (PAN):
(ii) Service Tax Registration No:
4. Commissioner of
Central Excise/Service Tax having jurisdiction over the applicant:
5. Specific
provision(s) of
Chapter V of the Finance Act, 1994, against whose violation,
prosecution is instituted or contemplated for which application of compounding
is being filed:
6. Details of
Adjudication Order in relation to the case for compounding:
7. Brief facts of the
case and particulars of the offence (s) charged:
8. Whether Show Cause Notice issued:
9. If yes, details of
service tax demanded:
10. Whether Show Cause Notice has been adjudicated:
11. If yes,
adjudication details:
(a) Amount of service
tax confirmed:
(b) Amount of CENVAT
credit to be recovered/denied:
(c) Penalty imposed:
12. Whether this is
the first offence under Chapter V of the Finance Act, 1994, if not, details of
previous cases:
13. Whether any
proceedings for the same offence contemplated under any other law, if so, the
details thereof:
Name and Signature of the applicant.
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DECLARATION
1. I shall pay the
compounding amount, as may be fixed by the compounding authority under sub-rule
(3) of rule 4 of the Service Tax (Compounding of Offences) Rules, 2012.
2. I understand that
I shall not claim, as of right that the offence committed by me under the Act
be compounded.
Name and Signature of the applicant.
VERIFICATION
I, _______ son/daughter/wife of ____________ residing at __________do solemnly declare
that I am making this application in my capacity as ______ and I am competent
to verify it.
That the contents of
this application are true to the best of my knowledge and belief and no
information relevant to the facts of the case has been suppressed. The
documents accompanying the application are true copies of the originals and the
tables showing financial transactions are correct and are duly attested by me.
Verified today the
_____________ day of (month) __________ (year) at_________.
Name and Signature of the applicant.
Place:
Date:
[F.No. 334/1/ 2012-ST]
(Raj
Kumar Digvijay)
Under
Secretary to the Government of India
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