Service tax demand by excise officer ?
CA Sahi Singla
(Querist) 11 July 2012
This query is : Resolved
Sir
I have a Non SSI Partnership Firm engaged in Manufacturing of Iron & Steel. During the year, I availed service of Good transport Agency as input service. The freight of all the Consignment Notes was less that Rs 750. Total amount of Freight paid was Rs. 50000 during the year to one Goods Transport Agency. During Central Excise audit, The Superintendent of CE asked me to paid Service tax on Rs. 12500 i.e. 25% of 50000. He said that exemption of Rs. 750 has been withdrawn under reverse charge basis. I told him that he's not correct. But he is not agreeing on my explaination. He said that he will issue Show cause to me if i didn't apply for Service Tax reg. no. & pay the whole service tax.
Kindly tell me what alternative i have against this action of officer ? Can i appeal against his SCN ? Can i demand stay on deposit of demanded Tax ? if yes, plz guide.
ajay sethi
(Expert) 11 July 2012
if SCN is issued you have 30 days time to reply to SCN . after personal hearing is granted Asst Commr may confirm or reject the claim made by department .
if you are aggrieved by order of Asst commr you cna file an appeal Before Commr Appeals
