Dispute Resolution Scheme, 2008-Reg. - Service Tax - F.No. 137/96/2008-CX.4

F.No. 137/96/2008-CX.4 Government of IndiaMinistry of FinanceDepartment of RevenueCentral Board of Excise CustomsNew Delhi Dated: September 2, 2008 Sub: Dispute Resolution Scheme, 2008-Reg. Please refer your letter C. No. IV/16/169/2008-S Tax (CCO), dated 25.8.2008, on the above subject. 2.1 The Dispute Resolution Scheme, 2008 covers all such cases which satisfy the following conditions: (i) tax arrears, including interest and penalty, were payable or leviable under the Finance Act, 1994, but not paid prior to 1.3.2008; (ii) pending service tax arrears, as on 1.3.2008, was not in excess of Rs.25,000, There is no ceiling for penalty and interest amount; It may also be noted that a case involving arrears of only interest and penalty, without and service tax liability, is also covered by the Scheme. (iii) an order has been passed under the provisions chapter V of the Finance Act, 2004; or, a Show Cause Notice/ order has been issued on or before 1.3.2008; (iv) however, the Scheme does not apply to the SCN or the order issued under section 73A. 2.2 Revisional orders issued under section 84, qualify as orders issued under the provisions of Chapter V of the Finance Act, 1994, the Scheme applies to such orders, subject to satisfaction of other conditions stated above. Further, the affect of a revisional order passed by the Commissioner is that it only revises the order passed earlier by lower authority, therefore, if the revisional order has been issued or before 1.3.2008, the compounding amount would be determined on the basis of the revisional order passed under section 84. 2.3 As regards a notice issued under section 84, giving the assessee an opportunity to be heard and present his case, such a notice does not alter the position of tax arrears, hence such notice does not have any relevance in so far as application of the Scheme is concerned. Therefore, such notice has not to be taken into account for computation of compounding amount under the Scheme. However, in respect of cases where assessee opts for the Scheme, any pending proceeding under section 84 would stand finalized. Yours faithfully, (Gautam Bhattacharya) Commissioner (ST)