Rectification of Mistakes - Service Tax Practice Manual / Ready Reckoner - Service Tax

Rectification of Mistakes Section 74 of the Act provides the manner and procedure for rectification of mistakes apparent from the records / orders etc. Time Limit for rectification of mistake Sub section (1) provides that order can be rectified within two years from the date on which such order was passed. Who can rectify the order? Order can be rectified by the Central Excise officer who passed any order under the Act. Subject matter of Appeal cannot be rectified - 74(2) An order which has been considered and decided in any proceeding by way of appeal or revision relating to an order, the Central Excise Officer passing such order may, can not rectify such order. However, the Central Excise Officer can rectify the other portion of the order which was not considered and decided in any proceeding by way of appeal or revision. Who can point out the mistake? - 74(3) The central excise officer can amend the order: - - on his own motion; or - if any mistake is brought to his notice by the assessee; or - if any mistake is brought to his notice the Commissioner of Central Excise; or - if any mistake is brought to his notice the Commissioner of Central Excise (Appeals). When liability gets enhanced - 74(4) and 74(7) An amendment, which has the effect of enhancing the liability of the assessee or reducing a refund, shall not be made under this section unless the Central Excise Officer concerned has given notice to the assessee of his intention so to do and has allowed the assessee a reasonable opportunity of being heard. Where any such amendment has the effect of enhancing the liability of the assesse or reducing the refund already made, the Central Excise Officer shall make an order specifying the sum payable by the assessee and the provisions of this Chapter shall apply accordingly. Order shall be in Writing - 74(5) Where an amendment is made under this section, an order shall be passed in writing by the Central Excise Officer concerned. When liability gets reduced - 74(6) Subject to the other provisions of this Chapter where any such amendment has the effect of reducing the liability of an assessee or increasing the refund, the Central Excise Officer shall make any refund which may be due to such assessee.