{"id":1297,"date":"2015-10-28T07:34:00","date_gmt":"2015-10-28T07:34:00","guid":{"rendered":"https:\/\/taxolegal.com\/gstblog\/?p=1297"},"modified":"2021-12-03T07:37:37","modified_gmt":"2021-12-03T07:37:37","slug":"monetary-limits-of-arrest-in-service-tax","status":"publish","type":"post","link":"https:\/\/taxolegal.com\/gstblog\/index.php\/2015\/10\/28\/monetary-limits-of-arrest-in-service-tax\/","title":{"rendered":"Monetary Limits of Arrest in Service Tax"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1297\" class=\"elementor elementor-1297\" data-elementor-settings=\"[]\">\n\t\t\t\t\t\t\t<div class=\"elementor-section-wrap\">\n\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-f37bf99 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"f37bf99\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-dcd2044\" data-id=\"dcd2044\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-f7ba157 elementor-widget elementor-widget-text-editor\" data-id=\"f7ba157\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<p style=\"text-align:justify\"><span style=\"font-size:13.5pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;\ncolor:black\">Power tends to corrupt, and absolute power corrupts absolutely.\nPrior to 2013 there was no power to arrest vested in Service Tax officers,\nlater on they were provided powers to arrest and prosecute Service Tax evaders.\nAny unchecked power is likely to be abused. The Finance Act 1994, as amended in\n2013, has specified categories of offences in respect of which only, powers of\narrest may be exercised and these offences are covered under clause (i) or\nclause (ii) of sub-section (1) of section 89. Further, the Finance Act 1994 had\nalso prescribed value limits of evasion of service tax exceeding Rs. 50 lakh,\nfor exercising the powers of arrest.<\/span><span style=\"font-size:9.0pt;\nfont-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black\"><o:p><\/o:p><\/span><\/p><p style=\"text-align:justify\"><span style=\"font-size:13.5pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;\ncolor:black\">However, it was noticed that with power to recover Service Tax\nupto five years and continuous inflation during last few years, many assessee\nwere covered within the above limit of Rs.50 Lakhs. Thus many a times it was\nobserved that relatively small assessee were coerced into making payments\nbecause of fear of arrest. The CBEC has noticed such irregularities and thus,\nThe Central Board of Excise and Customs has instructed all their officers that\nsince, arrest impinges on the personal liberty of an individual, this power\nmust be exercised carefully.<\/span><span style=\"font-size:9.0pt;font-family:\n&quot;Arial&quot;,&quot;sans-serif&quot;;color:black\"><o:p><\/o:p><\/span><\/p><p style=\"text-align:justify\"><span style=\"font-size:13.5pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;\ncolor:black\">Notwithstanding the above limit, prosecution can be launched in\nthe case of assessee habitually evading tax\/duty or misusing Cenvat Credit\nfacility. An assessee would be treated as habitually evading tax\/duty or\nmisusing Cenvat Credit facility, if he has been involved in three or more cases\nof confirmed demand (at the first appellate level or above) of Central Excise\nduty or Service Tax or misuse of Cenvat credit involving fraud, suppression of\nfacts etc. in past five years from the date of the decision such that the total\nduty or tax evaded or total credit misused is equal to or more than Rs.1 Crore.<\/span><span style=\"font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black\"><o:p><\/o:p><\/span><\/p><p style=\"text-align:justify\"><span style=\"font-size:13.5pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;\ncolor:black\">CBEC vide its another<span class=\"apple-converted-space\">&nbsp;<\/span>Circular\nNo. 1009\/16\/2015-CX dated 23.10.2015<span class=\"apple-converted-space\">&nbsp;<\/span>has\nprescribed that Sanction of prosecution has serious repercussions for the\nassessee and therefore along with the above monetary limits, the nature of\nevidence collected during the investigation should be carefully assessed. The\nevidences collected should be adequate to establish beyond reasonable doubt\nthat the person, company or individual had guilty mind, knowledge of the\noffence, or had fraudulent intention or in any manner possessed mens-rea\n(guilty mind) for committing the offence.<\/span><span style=\"font-size:9.0pt;\nfont-family:&quot;Arial&quot;,&quot;sans-serif&quot;;color:black\"><o:p><\/o:p><\/span><\/p><p>\n\n\n\n\n\n\n\n<\/p><p style=\"text-align:justify\"><span style=\"font-size:13.5pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;\ncolor:black\">Now, with such clear guidelines, CBEC has made sure that habitual\noffenders are not let off easily and at the same time only in cases involving\nduty or tax of Rs.1 Crore the arrest provisions will be applicable. These\nCirculars will definitely help the medium sized assessee from the threat of\narrest.<\/span><span style=\"font-size:9.0pt;font-family:&quot;Arial&quot;,&quot;sans-serif&quot;;\ncolor:black\"><o:p><\/o:p><\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Power tends to corrupt, and absolute power corrupts absolutely. Prior to 2013 there was no power to arrest vested in Service Tax officers, later on they were provided [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":576,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"default","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"disabled","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[9],"tags":[],"class_list":["post-1297","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-service-tax"],"uagb_featured_image_src":{"full":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"thumbnail":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",150,90,false],"medium":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",300,180,false],"medium_large":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",768,461,false],"large":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"1536x1536":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false],"2048x2048":["https:\/\/taxolegal.com\/gstblog\/wp-content\/uploads\/2021\/10\/gstin20210118144318.jpeg",1000,600,false]},"uagb_author_info":{"display_name":"admin","author_link":"https:\/\/taxolegal.com\/gstblog\/index.php\/author\/taxol_amyas2u3\/"},"uagb_comment_info":0,"uagb_excerpt":"Power tends to corrupt, and absolute power corrupts absolutely. Prior to 2013 there was no power to arrest vested in Service Tax officers, later on they were provided [&hellip;]","_links":{"self":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1297","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/comments?post=1297"}],"version-history":[{"count":4,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1297\/revisions"}],"predecessor-version":[{"id":1301,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/posts\/1297\/revisions\/1301"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/media\/576"}],"wp:attachment":[{"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/media?parent=1297"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/categories?post=1297"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/taxolegal.com\/gstblog\/index.php\/wp-json\/wp\/v2\/tags?post=1297"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}