I.  Useful Analysis on  ST Notifications:

1.   Analysis of NN 16/2012 ST dated 29.05.2012 [Service Tax (Settlement of Cases) Rules, 2012]

Relevant Extract of D.O. F. No 334/1/2012-TRU New Delhi, dated 16th March, 2012.

“Provisions relating to Settlement Commission are being brought in the Service Tax by adding sections 31, 32 and 32A to 32P of the Central Excise Act in section 83. On the date of the enactment of the Finance Bill (i.e., 28.05.2012), notification containing Service Tax (Settlement of Cases) Rules, 2012 along the lines of Central Excise (Settlement of Cases) Rules, 2007, will come into effect. This should encourage quick settlement of disputes and save the business from the worries of prosecution in certain situations.”

Clause 143(M) of Finance Act, 2012 amended section 83 of Finance Act, 1994 to make Settlement Commission provisions given in sections 31, 32, 32A to 32P of the Central Excise Act, 1944, applicable to service tax cases.

These sections of excise provide following provisions and same shall be applicable for settlement of case of service tax through settlement commission:

(For detail please click here)

2.   ANALYSIS OF NOTIFICATION NO. 17/2012-ST, DATED 29th May, 2012 [Service Tax (Compounding of Offences) Rules, 2012]

Section 89 of Finance Act, 1994 laid down provision for prosecution in respect of specified offences.

Section 9A of Central Excise Act, 1944 made applicable to service tax vide section 83 of Finance Act, 1994 laid down provision of making application for compounding of offences.

Now NN 17/2012 -ST, DATED 29th May, 2012 made Service Tax (Compounding of Offences) Rules, 2012 and these rules provides manner of making application for compounding of offences and give power to compounding authority to grant immunity from prosecution.

Brief analysis of above provisions are given below for over all understanding of these provisions and its benefit to the interested parties.

Last year Finance Act, 2011 had reintroduced Prosecution Provision by inserting section 89. In same line section 9A of Central Excise Act, 1944 had also been made applicable for compounding of offences by amending section 83 of Finance Act, 1994. Section 89 provide whoever commits any of the specified offences shall be punishable as under:

(For detail please click here)

II.  Today's News:   

1. CBDT Clarification on Re-opening of Assessments after Finance Act 2012  (Click for detail)

2. ST Notification No. 16 – Service Tax (Settlement of Cases) Rules, 2012  (Click for detail)

3. ST Notification No. 17 – Service Tax (Compounding of Offences) Rules, 2012  (Click for detail)

4. FM’s Tax Breather for IT Industry  (Click for detail)

5. FEMA – Cir. No. 131 - Overseas Direct Investments by Indian Party - Online Reporting of Overseas Direct Investment in Form ODI  (Click for detail)

6. Banks sharing data with IT dept will help deter tax evasions  (Click for detail)

7. Economy hits 9-year low growth in FY'12; prospects dim  (Click for detail)

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"Adjustment with right people is always better 
Than Argument with wrong people"   

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