Section 78A - Penalty for offences by director, etc., of company - Finance Act, 1994

1 [ 78A . Penalty for offences by director, etc., of company. 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 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 beyond a period of six months from the date on which such payment becomes due, 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.] 2 [ Explanation . For the removal of doubts, it is hereby clarified that where any service tax has not been levied or paid or has been short-levied or short-paid or erroneously refunded, and the proceedings with respect to a notice issued under sub-section (1) of section 73 or the proviso to sub-section (1) of section 73 is concluded in accordance with the provisions of clause (i) of the first proviso to section 76 or clause (i) of the second proviso to section 78, as the case may be, the proceedings pending against any person under this section shall also be deemed to have been concluded. ] ************* Notes: 1. Inserted vide Finance Act 2013, w.e.f. 10th May, 2013. 2. Inserted vide THE FINANCE ACT, 2016 w.e.f. May 14, 2016.