Tag Archives: Central Excise and Service Tax Department

According to a recent judgement by the Delhi High Court, there cannot be any audit of assesse records by the Central Excise and Service Tax Department and struck down Rule 5A(2) of Service Tax Rules as ultra vires to the Finance Act, 1994. It is a general practice of Service Tax Department to conduct audit of service tax assessee for last five years by deputing their own officers of the rank of inspector and Superintendents. Service Tax Department also seeks voluminous details and seeks information in self-specified format/annexures of about 32 pages, which are not prescribed under the law. Service Tax Department without assigning any reasons and routinely conducts audit even when it is not prescribed under the law and not conducting special audit. This comes as a huge relief for travel companies who have faced instances of audit by service tax department.

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