Cognizable and Non-Cognizable Office Specified

See clause 93(K) of Finance Bill, 2013

Section 90 is being introduced to specify and differentiate cognizable offences from non-cognizable and bailable offences;

Accordingly the following offence shall be cognizable:

The offence

(d) collects any amount as service tax but fails to pay the amount so collected to the credit of the Central Government beyond a period of six months from the date on which such payment becomes due, shall be punishable

The punishment (as per the proposed amendment – See clause 93(J))

(ii) in the case of the offence specified in clause (d), where the amount exceeds fifty lakh rupees, with imprisonment for a term which may extend to seven years:

Non-cognizable and bailable offence:

All other offences mentioned in Section 89 shall be Non-cognizable and bailable.