Service Tax (Compounding of Offences) Rules,
2012 Notified
[Service Tax Notification No. 17 dated 29th
May 2012]
1. Short
title and commencement
2. Definitions
3. Form and
manner of application
4. Procedure on receipt of
application under rule 3.
5. Fixation
of the compounding amount
6. Power of
compounding authority to grant immunity from prosecution
7. Withdrawal
of immunity from prosecution in certain conditions
Form - Application for Compounding of Offence
In exercise of the powers conferred by
clause (i) of sub-section (2) of section 94 of the Finance Act, 1994 (32 of
1994)(hereinafter referred to as “the Act”) read with
sub-section (2) of section 9A of the Central Excise Act, 1944 (1 of 1944), made
applicable to service tax vide section 83 of the Act, the Central Government
hereby makes the following rules, namely:
1. Short
title and commencement
(1) These
rules may be called the Service Tax (Compounding of Offences) Rules, 2012.
(2) They
shall come into force on the date of publication in the Official Gazette.
2. Definitions
In these rules, unless the context
otherwise requires,-
(a) “Act”
means Chapter V of the Finance Act, 1994 (32 of 1994);
(b) “applicant” means any assessee or
any other person, but shall not include officers of Central Excise appointed
for exercising the powers under the Act under rule 3 of the Service Tax Rules,
1994;
(c) “compounding authority” means the Chief Commissioner of
Central Excise, having jurisdiction over the place where the offence under the
Act, have been or alleged to have been committed;
(d) “Excise
Act” means the Central Excise Act, 1944 (1 of 1944);
(e) “form” means the form appended to these rules;
(f) “reporting
authority” means, the Commissioner of Central Excise or Commissioner of Service
Tax, having jurisdiction over the place where the offences under the Act have
been or are alleged to have been committed or any other officer as may be authorised
in this regard by the Chief Commissioner of Central Excise having jurisdiction
over the place where such offences under the Act, have been or are alleged to
have been committed;
(g) “section” means a section of the Act; and
(h) words and expressions used in these rules and not defined
but defined in the Act or Central Excise Act, 1944 shall have the respective
meanings assigned to them in the Act or Central Excise Act, 1944, as the case
may be.
3. Form
and manner of application
An applicant may, either before or after
the institution of prosecution, make an application under sub-section (2) of
section 9A of Excise Act, made applicable to service tax vide section 83 of the
Act, in the form appended to these rules, to the compounding authority to
compound the offence.
Explanation.- Where
an offence under the Act has been committed at more than one place falling
under the jurisdiction of more than one compounding authority, then the Chief
Commissioner of Central Excise having jurisdiction over such place where the
amount of service tax evaded is more than the others, shall be the competent
authority.
4. Procedure on receipt of application under
rule 3.
(1) On
receipt of an application under rule 3, the compounding authority shall call
for a report from the reporting authority with reference to the particulars
furnished in the application, or any other information, which may be considered
relevant for examination of such application.
(2) Such
report shall be furnished by the reporting authority within a period of one
month or within such extended period as may be allowed by the compounding
authority, from the date of receipt of communication from the compounding
authority.
(3) The
compounding authority, after taking into account the contents of the said
application, may, by order, either allow the application indicating the
compounding amount in terms of rule 5 and grant him immunity from prosecution
in terms of rule 6 or reject such application:
Provided that
application shall not be rejected unless an opportunity has been given to the
applicant of being heard and the grounds of such rejection are mentioned in
such order:
Provided further
that application shall not be allowed unless the service tax, penalty and
interest liable to be paid have been paid for the case for which application
has been made.
(4) A
copy of every order under sub-rule (3) shall be sent to the applicant.
(5) The
applicant shall, within a period of thirty days from the date of receipt of order
under sub-rule (3) allowing the compounding of offences, pay the compounding
amount, as ordered to be paid by the compounding authority and shall furnish
the proof of such payment to the compounding authority.
(6) The
compounding amount once paid shall not be refunded except in cases where the
court rejects grant of immunity from prosecution.
(7) The
applicant shall not claim, as of right, that his offence be compounded.
5. Fixation
of the compounding amount
For the purpose of compounding of offences under
the provisions of the Act, the compounding amount shall be as provided in the
following Table, namely:-
Table |
||
S. No. |
Offence |
Compounding amount |
(1) |
(2) |
(3) |
1. |
Offence specified
under section 89 (1)(a) of the Act |
Up to fifty per cent. of the amount of service tax evasion, subject to minimum
of ten per cent. of amount of tax evaded. |
2. |
Offence specified
under section 89 (1)(b) of the Act |
Upto fifty
per cent. of the amount of CENVAT Credit wrongly
taken or utilised, subject to minimum of ten per cent. of
said amount. |
3. |
Offence specified
under section 89 (1)(c) of the Act |
Rupees fifty thousand
for the first offence and to be increased by hundred per cent. of this amount for each subsequent offence. |
4. |
Offence specified
under section 89 (1)(d) of the Act |
Upto
twenty five per cent. of the amount of service tax
not deposited subject to a minimum of two per cent. for
each month for which the amount has not been so deposited. |
Provided that
if a person has committed offences falling under more than one category specified
above and where the amount of service tax evasion or amount of CENVAT Credit
wrongly taken or utilised is the same for all such
offences, the compounding amount, in such cases, shall be the amount as
determined for the offence for which a higher compounding amount has been
prescribed.
6. Power
of compounding authority to grant immunity from prosecution
The compounding authority, if he is
satisfied that any person who has made the application for compounding of
offence under these rules has co-operated in the proceedings before him and has
made full and true disclosure of facts relating to the case, grant such person,
subject to such conditions as he may think fit to impose, immunity from
prosecution for any offence under the Act, with respect to the case covered by
the compounding of offence.
7. Withdrawal
of immunity from prosecution in certain conditions
(1) An
immunity granted to a person under rule 6 shall stand withdrawn if such person
fails to pay any sum specified in the order of compounding passed by the
compounding authority, under sub-rule (3) of rule 4 within the time specified
in the order or fails to comply with any other condition subject to which the
immunity was granted and thereupon the provisions of the Act, shall apply as if
no such immunity had been granted.
(2) An
immunity granted to a person under sub-rule (1) may, at any time, be withdrawn
by the compounding authority, if he is satisfied that such person had, in the
course of the compounding proceedings, concealed any material particulars, or
had given false evidence, and thereupon the person may be tried for the offence
with respect to which immunity was granted or for any other offence that
appears to have been committed by him in connection with the compounding
proceedings and, thereupon, the provisions of the Act, shall apply as if no
such immunity had been granted.
Form
(See rule 3)
Application for
Compounding of Offence
1. Full
Name and permanent address of the applicant:
2. Address
for communication:
3. (i) Permanent Account Number (PAN):
(ii) Service
Tax Registration No:
4. Commissioner
of Central Excise/Service Tax having jurisdiction over the applicant:
5. Specific
provision(s) of Chapter V of the Finance Act, 1994, against whose violation,
prosecution is instituted or contemplated for which application of compounding
is being filed:
6. Details
of Adjudication Order in relation to the case for compounding:
7. Brief
facts of the case and particulars of the offence (s) charged:
8. Whether
Show Cause Notice issued:
9. If
yes, details of service tax demanded:
10. Whether
Show Cause Notice has been adjudicated:
11. If
yes, adjudication details:
(a) Amount
of service tax confirmed:
(b) Amount
of CENVAT credit to be recovered/denied:
(c) Penalty
imposed:
12. Whether
this is the first offence under Chapter V of the Finance Act, 1994, if not,
details of previous cases:
13. Whether
any proceedings for the same offence contemplated under any other law, if so,
the details thereof:
Name and Signature of the
applicant.
Declaration
1. I
shall pay the compounding amount, as may be fixed by the compounding authority
under sub-rule (3) of rule 4 of the Service Tax (Compounding of Offences)
Rules, 2012.
2. I
understand that I shall not claim, as of right that the offence committed by me
under the Act be compounded.
Name and Signature of the
applicant.
Verification
I,
______ son/daughter/wife of __________ residing at _________do solemnly declare
that I am making this application in my capacity as ______ and I am competent
to verify it. That the contents of this application are true to the best of my
knowledge and belief and no information relevant to the facts of the case has
been suppressed. The documents accompanying the application are true copies of the
originals and the tables showing financial transactions are correct and are
duly attested by me.
Verified
today the __________ day of (month) ________ (year) at________.
Name
and Signature of the applicant.
Place:
Date:
[F.No. 334/1/
2012-ST]