CHAPTER V OF THE FINANCE ACT, 1994
(as amended)

Service Tax Act

64. Extent, commencement and application.

(1) This Chapter extends to the whole of India except the State of Jammu and Kashmir.
(2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

(3)It shall apply to taxable services provided on or after the commencement of this Chapter.

65. Definitions. - In this Chapter, unless the context otherwise requires, --

(1) "actuary" has the meaning assigned to it in clause (1) of section 2 of the Insurance Act, 1938 (4 of 1938);
(2)"advertisement" includes any notice, circular, label, wrapper, document, hoarding or any other audio or visual representation made by means of light, sound, smoke or gas;
(3) "advertising agency" means any commercial concern engaged in providing any service connected with the making, preparation, display or exhibition of advertisement and includes an advertising consultant;
(3a) “aircraft” has the meaning assigned to it in clause (1) of section 2 of the Aircraft Act, 1934 922 of 1934);
(3b) “aircraft operator” means any commercial concern which provides the service of transport of goods by aircraft;
(3c) “airport” has the meaning assigned to it in clause(b) of section 2 of the Airports Authority of India Act, 1994 ( 55 of 1994)
(3d) “airport authority” means the Airports Authority of India constituted under section 3 of the Airports Authority of India Act, 1994 ( 55 of 1994) and also includes any person having charge of management of an airport or a civil enclave.
(4) "air travel agent" means any person engaged in providing any service connected with the booking of passage for travel by air;
(5) "Appellate Tribunal" means the Customs, Excise and Gold (Control) Appellate constituted under section 129 of the Customs Act, 1962 (52 of 1962);
(6) "architect" means any person whose name is, for the time being, entered in the register of architects maintained under section 23 of the Architect Act,1972 (20 of 1972) and also includes any commercial concern engaged in any manner, whether directly or indirectly, in rendering services in the field of architecture;
(7) "assessee" means a person liable to pay the service tax and includes his agent;
(8) “ authorised dealer of foreign exchange” has the meaning assigned to “authorised person” in clause © of section 2 of the Foreign Exchange Management Act, 1999 ( 42 of 1999);
(9) "authorized service station" means any service station or centre, authorized by any motor vehicle manufacturer, to carry out any service, repair, reconditioning or restoration of any motor car or two wheeled motor vehicle manufactured by such manufacturer;
(10) "banking" shall have the meanings assigned to it in clauses (b) of section 5 of the Banking Regulation Act, 1949 (10 of 1949),
(11) "banking company" shall have the meanings assigned to it in clauses (a) of section 45 A of the Reserve Bank of India Act, 1934 (2 of 1934);
(12) " banking and other financial services" means, the following services provided by a banking company or a financial institution including a non-banking financial company or any other body corporate, namely :-
(i) financial leasing services including equipment leasing, and hire-purchase by a body corporate;
(ii) credit card services;
(iii) merchant banking services;
(iv) securities and foreign exchange (forex) broking;
(v) asset management including portfolio management, all forms of fund management, pension fund management, custodial depository and trust services, but does not include cash management;
(vi) advisory and other auxiliary financial services including investment and portfolio research and advice, advice on mergers and acquisition and advice on corporate restructuring and strategy; and
(vii) provision and transfer of information and data processing;
(viii) Other financial services, namely, lending; issue of pay order, demand draft, cheque, letter of credit and bill of exchange; providing bank guarantee, overdraft facility, bill discounting facility, safe deposit locker, safe vaults, operation of bank accounts;
(13) "Board" means the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963 (54 of 1963);
(14) "body corporate" shall have the meaning assigned to it in clause (7) of Section 2 of the Companies Act, 1956 (1 of 1956);
(15) "broadcasting " has the meaning assigned to it in clause (c ) of section 2 of the Prasar Bharati (Broadcasting Corporation of India) Act, 1990 (25 of 1990) and also includes programme selection, scheduling or presentation of sound or visual matter on a radio or a television channel that is intended for public listening or viewing, as the case may be; and in the case of a broadcasting agency or organisation, having its head office situated in any place outside India, includes the activity of selling of time slots or obtaining sponsorships for broadcasting of any programme or collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electromagnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency or organisation, by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner;
(16) "broadcasting agency or organization" means any agency or organization engaged in providing service in relating to broadcasting in any manner and, in the case of a broadcasting agency or organization, having its head office situated in any place outside India, includes its branch office or subsidiary or representative in India or any agent appointed in India or any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programme or collecting broadcasting charges on behalf of the said agency or organisation;
(17) "beauty treatment" includes hair cutting, hair dyeing, hair dressing, face and beauty treatment, cosmetic treatment, manicure, pedicure or counseling services on beauty, face care or make up or such other similar services ;
(18)"beauty parlour" means any establishment providing beauty treatment services;
(19) “business auxiliary service” means any service in relation to,-
(i) Promotion or marketing or sale of goods produced or provided by or belonging to the client; or
(ii) Promotion or marketing of service provided by the client; or
(iii) Any customer care service provided on behalf of the client; or
(iv) Procurement of goods or services, which are inputs for the client; or

Explanation: For the removal of doubts, it is hereby declared that for the purposes of this sub-clause, “inputs” means all goods or services intended for use by the client.

(v) Production and processing of goods for, on behalf of the client; or

(vi) Provision of service on behalf of the client; or

(vii) A service incidental or auxiliary to any activity specified in sub-clauses (i) to (vi), such as billing, issue or collection or recovery of cheques, payments, maintenance of accounts and remittance, inventory management, evaluation or development of prospective customer or vendor, public relations services, management or supervision,

And includes services as a commission agent, but does not include any information technology service and any activity that amounts to “manufacture” within the meaning of clause (f) of section 2 of the Central Excise Act, 1944 (1 of 1944).

Explanation:- For the removal of doubts, it is hereby declared that for the purposes of this clause,—

(a) "commission agent" means any person who acts on behalf of another person and causes sale or purchase of goods, or provision or receipt of services, for a consideration,and includes any person who, while acting on behalf of another person—

(i) deals with goods or services or documents of title to such goods or services; or
(ii) collects payment of sale price of such goods or services; or
(iii) guarantees for collection or payment for such goods or services; or
(iv) undertakes any activities relating to such sale or purchase of such goods or services;
(b) "information technology service" means any service in relation to designing,developing or maintaining of computer software, or computerised data processing or system networking, or any other service primarily in relation to operation of computer systems;
(19a) “business exhibition” means an exhibition,-
(a) to market; or
(b) to promote; or
(c) to advertise; or
(d) to showcase,

Any product or service, intend for the growth in business of the producer or provider of such product or service, as the case may be;

(20) "cab" means a motor cab or maxi cab;
(21) "cable operator" shall have the meaning assigned to it in clause (aa) of section 2 of the Cable Television Networks (Regulation) Act, 1995 (7 of 1995);
(22) "cable service" shall have the meaning assigned to it in clause (b) of section 2 of the Cable Television Networks (Regulation) Act, 1995 (7 of 1995);
(23) "cargo handling service" means loading, unloading, packing or unpacking of cargo and includes cargo handling services provided for freight in special containers or for non-containerized freight, services provided by a container freight terminal or nay other freight terminal, for all modes of transport and cargo handling services incidental to freight, but does not include handling of export cargo or passenger baggage or mere transportation of goods;
(24) "caterer" means any person who supplies, either directly or indirectly, any food, edible preparations, alcoholic or non-alcoholic beverages or crockery and similar articles or accoutrements for any purpose of occasion;
(24a) “ civil enclave” has the meaning assigned to it in clause(i) of section 2 of the Airports Authority of India Act, 1994 ( 55 of 1994);

(24 b) cleaning activity" means cleaning, including specialised cleaning services such as disinfecting, exterminating or sterilising of objects or premises, of—
(i) commercial or industrial buildings and premises thereof; or
(ii) factory, plant or machinery, tank or reservoir of such commercial or industrial buildings and premises thereof, but does not include such services in relation to agriculture, horticulture, animal husbandry or dairying;
(25) "clearing and forwarding" means any person who is engaged in providing any service, either directly or indirectly, connected with the clearing and forwarding operations in any manner to any other person and includes a consignment agent;

(25 a) club or association" means any person or body of persons providing services, facilities or advantages, for a subscription or any other amount, to its members, but does not include—

(i) any body established or constituted by or under any law for the time being in force; or
(ii) any person or body of persons engaged in the activities of trade unions, promotion of agriculture, horticulture or animal husbandry; or
(iii) any person or body of persons engaged in any activity having objectives which are in the nature of public service and are of a charitable, religious or political nature; or
(iv) any person or body of persons associated with press or media;
(25 b) commercial or industrial construction service" means—
(a) construction of a new building or a civil structure or a part thereof; or
(b) construction of pipeline or conduit; or
(c) completion and finishing services such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services, in relation to building or civil structure; or

(d) repair, alteration, renovation or restoration of, or similar services in relation to, building or civil structure, pipeline or conduit, which is—

(i) used, or to be used, primarily for; or
(ii) occupied, or to be occupied, primarily with; or
(iii) engaged, or to be engaged, primarily in, commerce or industry, or work intended for commerce or industry, but does not include such services provided in respect of roads, airports, railways, transport terminals, bridges, tunnels and dams;';

(26) “ commercial training or coaching” means any training or coaching provided by a commercial training or coaching centre;

(27) ” commercial training or coaching centre” means any institute or establishment providing commercial training or coaching for imparting skill or knowledge or lessons on any subject or field other than the sports, with or without issuance of a certificate and includes coaching and tutorial classes but does not include preschool coaching and training centre or any institute or establishment which issues any certificate or diploma or degree or nay educational qualification recognized by law for time being in force;

(28) Omitted

(29) “ commissioning or installation agency” means any agency providing service in relation to erection, commissioning or installation;

(30) "computer network" has the meaning assigned to it in clause (j) of sub-section (1) of section 2 of the Information Technology Act,2000 (21 of 2000);

(30a) “construction of complex" means—

(a) construction of a new residential complex or a part thereof; or
(b) completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or

(c) repair, alteration, renovation or restoration of, or similar services in relation to, residential complex;
(31) "consulting engineer" means any professionally qualified engineer or an engineering firm who, either directly or indirectly, renders any advice, consultancy or technical assistance in any manner to a client in one or more disciplines of engineering;

(32) "convention" means a formal meeting or assembly which is not open to the general public, and dose not include a meeting or assembly the principal purpose of which is to provide any type of amusement, entertainment or recreation;

(33) "courier agency" means a commercial concern engaged in the door-to-door transportation of time –sensitive documents, goods or articles utilising the services of a person, either directly or indirectly, to carry or accompany such documents, goods or articles;

(34) "credit rating agency" means any commercial concern engaged in the business of credit rating of any debt obligation or of any project or programme requiring finance, whether in the form of debt or otherwise, and includes credit rating of any financial obligation, instrument or security, which has the purpose of providing a potential investor or any other person any information pertaining to the relative safety of timely payment of interest or principal;

(35) "customs house agent" means a person licensed, temporarily or otherwise, under the regulations made under sub-section (2) of section 146 of the Customs Act,1962 (52 of 1962);

(36) "data" has the meaning assigned to it in clause (o) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(36a) dredging" includes removal of material including, silt, sediments, rocks, sand, refuse, debris, plant or animal matter in any excavating, cleaning, deepening, widening or lengthening, either permanently or temporarily, of any river, port, harbour, backwater or estuary;

(37) "dry cleaning" includes dry cleaning of apparels, garments or other textile, fur or leather articles;

(38) "dry cleaner" means any commercial concern providing service in relation to dry cleaning;

(39) "electronic form" has the meaning assigned to it in clause ( r) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(39a) erection, commissioning or installation" means any service provided by a commissioning and installation agency, in relation to,—

(i) erection, commissioning or installation of plant, machinery or equipment; or
(ii) installation of—(a) electrical and electronic devices, including wirings or fittings therefor; or
(b) plumbing, drain laying or other installations for transport of fluids; or
(c) heating, ventilation or air-conditioning including related pipe work, duct work and sheet metal work; or
(d) thermal insulation, sound insulation, fire proofing or water proofing; or
(e) lift and escalator, fire escape staircases or travelators; or
(f) such other similar services;
(40) "event management" means any service provided in relation to planning, promotion, organizing or presentation of any arts, entertainment, business, sports or any other event and includes any consultation provided in this regard;
(41) "event manager" means any person who is engaged in providing any service in relation to event management in any manner;
(42) "facsimile (FAX)" means a form of telecommunication by which fixed graphic images, such as printed texts and pictures are scanned and the information converted into electrical signals for transmission over the telecommunication system;
(43) "fashion designing" includes any activity relating to conceptualizing, outlining, creating the designs and preparing patterns for costumes, apparels, garments, clothing accessories, jewellery or any other articles intended to be worn by human beings and any other service incidental thereto;
(44) "fashion designer" means any person engaged in providing service in relation to fashion designing;
(45) "financial institution" has the meaning assigned to it in clause (c) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);
(46) “foreign exchange broker” includes any authorized dealer in foreign exchange;
(46a) “forward contract” has the meaning assigned to it in clause 9c) of section 2 of the Forward Contracts (Regulation) Act, 1952 ( 74 of 1952);
(47) “franchise" means an agreement by which the franchisee is granted representational right to sell or manufacture goods or to provide service or undertake any process identified with franchisor, whether or not a trade mark, service mark, trade name or logo or any such symbol, as the case may be, is involved;

(48) “franchisor” mean a person who enters into franchise with a franchisee and includes any associate of franchisor or a person designated by franchiser to enter into franchise on his behalf and the term “franchisee” will be constued accordingly;

(49) "general insurance business" has the meaning assigned to it in clause (g) of section 3 of the General Insurance Business (Nationalisation) Act, 1972 (57 of 1972);

(50) "goods" has the meaning assigned to it in clause (7) of section 2 of the sale of Goods Act, 1930 (3 of 1930);

(50a) “goods carriage” has the meaning assigned to it in clause 914) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(50b) “ goods transport agency” means any commercial concern which provides service in relation to transport of goods by road and issues consignment notes, by whatever name called;

(51) "health club and fitness service" means service for physical well-being such as, sauna and steam bath, Turkish bath, solarium, spas, reducing or slimming salons, gymnasium, yoga, meditation, massage (excluding therapeutic massage)or any other like service;

(52) "health club and fitness centre" means any establishment, including a hotel or resort, providing health and fitness service;

(53) "information" has the meaning assigned to it in clause (v) of sub-section (1) of section 2 of the Information Technology Act, 2000 (21 of 2000);

(54) "Insurance Agent" has the meaning assigned to it in clause (10) of section 2 of the Insurance Act, 1938 (4 of 1938);

(55) "insurance auxiliary service" means any service provided by an actuary, an intermediary or insurance intermediary or an insurance agent in relation to general insurance business and includes risk assessment, claim settlement, survey and loss assessment;
(55a) “intellectual property right” means any right to intangible property, namely, trade marks, patents or any similar intangible property, under any law for the time being in force, but does not include copyright;

(55b) “intellectual property service” means,-

(a) transferring temporarily; or
(b) permitting the use or enjoyment of , any intellectual property right;

(56) "intermediary" or insurance intermediary" has the meaning assigned to it in sub-clause (f) of clause (1) of section 2 o the Insurance Regulatory and Development Authority Act, 1999 (41 of 1999);

(57) “internet café” means a commercial establishment providing facility for accessing internet;

(58) "insurer" means nay person carrying on the general insurance business in India;

(59) "Interior decorator" means any person engaged, whether directly or indirectly, in the business of providing by way of advice, consulting, technical assistance or in any other manner, services related to planning, design or beautification of space, whether man-made or otherwise and includes a landscape designer;

(60) "leased circuit" means a dedicated link provided between two fixed locations for exclusive use of the subscriber and includes a speech circuit, data circuit or a telegraph circuit;

(61) "life insurance business" has the meaning assigned to it in clause (11) of section 2 of the Insurance Act, 1938 (4 of 1938);

(62) “light motor vehicle” means any motor vehicle constructed or adapted to carry more than six passengers, but not more than twelve passengers, excluding the driver;

(63) "magnetic storage device" include wax blanks, discs or blanks strips or films for the purpose of original sound recording;

(63a) mailing list compilation and mailing" means any service in relation to—

(i) compiling and providing list of name, address and any other information from any source; or
(ii) sending document, information, goods or any other material in a packet, by whatever name called, by addressing, stuffing, sealing, metering or mailing,for, or on behalf of, the client;

(64) “maintenance or repair” means any service provided by,-

(i) any person under a contract or an agreement; or
(ii) a manufacturer or any person authorised by him,

in relation to,—(a) maintenance or repair including reconditioning or restoration, or servicing of any goods or equipment, excluding motor vehicle; or

(b) maintenance or management of immovable property
(65) "management consultant" means any person who is engaged in providing any service, either directly or indirectly, in connection with the management of any organisation in any manner and includes any person who renders any advice, consultancy or technical assistance, relating to conceptualizing, devising, development, modification, rectification or upgradation of any working system of any organization.

(66) "Mandap" means any immovable property as defined in section 3 of the Transfer of Property Act, 1882 (4 of 1882) and includes any furniture, fixtures, light fittings and floor coverings therein let out for consideration for organizing any official, social or business function;

(67) "Mandap keeper" means a person who allows temporary occupation of a Mandap for consideration for organizing any official, social or business function;

(68) "manpower recruitment or supply agency" means any commercial concern engaged in providing any service, directly or indirectly, in any manner for recruitment or supply of manpower, temporarily or otherwise, to a client;

(69) "market research agency" means any commercial concern engaged in conducting market research in any manner, in relation to any product, service or utility, including all types of customized and syndicated research services;

(70) "maxi cab" has the meaning assigned to it in clause (22) of section 2 of the Motor Vehicles Act, 1988 (59 of 1988);

(71) "motor cab" has the meaning assigned to it in clause (25) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988)

(72) "motor car" has the meaning assigned to it in clause (26) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988)

(73) "motor vehicle" has the meaning assigned to it in clause (28) of section 2 of the Motor Vehicle Act, 1988 (59 of 1988)

(74) "non-banking financial company" has the meaning assigned to it in clause (f) of section 45-I of the Reserve Bank of India Act, 1934 (2 of 1934);

(75) "on-line information and database access or retrieval" means providing data or information, retrievable or otherwise, to a customer, in electronic form through a computer network;

(75a) “opinion poll” means any service designed to secure information on public opinion regarding social, economic, political or other issues;

(75b) “opinion poll agency” means any person engaged in providing services in relation to opinion poll;

(76) “other port” has the meaning assigned to “port” in clause (4) of section 3 of the Indian Ports Act, 1908 ( 15 of 1908), but does not include the port defined in clause (81);

(76a) “outdoor caterer” means a caterer engaged in providing services in connection with catering at a place other than his own, but including a place providedby way of tenancy or otherwise by the person receiving such services;

(76b) “packaging activity" means packaging of goods including pouch filling, bottling, labeling or imprinting of the package, but does not include any packaging activity that amounts to 'manufacture' within the meaning of clause (f) of section 2 of the Central Excise Act, 1944;

(77) "pager" means an instrument, apparatus or appliance which is a non-speech, one way personal calling system which alert and has the capability of receiving, storing and displaying numeric or alpha-numeric message;

(77a) “pandal or shamiana” means a place specially prepared or arranged for organizing an official, social or business function;

(77b) “pandal or shamiana contractor” means a person engaged in providing any service, directly or indirectly, in connection with the preparation, arrangement, erection or decoration of a pandal or shamiana and includes the supply of furniture, fixtures, lights and light fittings, floor coverings and other articles for use therein;

(78) "photography" includes still photography, motion picture photography, laser photography, aerial photography and fluorescent photography;

(79) "photography studio or agency" means any professional photographer or a commercial concern engaged in the business of rendering service relating to photography;

(80) "policy holder" has the meaning assigned to it in clause (2) of section 2 of the Insurance Act, 1963 (4 of 1938);

(81) "port" has the meaning assigned to it in clause (q) of section 2 of the Major Port Trust Act, 1963 (38 of 1963);

(82) "port services" means any service rendered by a port or any person authorized by the port, in any manner, in relation to a vessel or goods;

(83) "practising chartered accountant" means a person who is a member of the Institute of Chartered Accountants of India and is holding a certificate of practice granted under the provision of the Chartered Accountants Act, 1949 (38 of 1949) and includes any concern engaged in rendering services in the field of Chartered accountancy;

(84) "practicing cost accountant" means a person who is member of the Institute of Cost and Works Accountants of India and is holding a certificate of practice granted under the provisions of the Cost and works Accountants Act, 1959 (23 of 1959) and includes any concern engaged in rendering services in the field of cost accountancy;

(85) "practicing company secretary" means a person who is a member of the Institute of company Secretaries of India and is holding a certificate of practice granted under the provisions of the Company Secretaries Act, 1980 (56 of 1980) and includes any concern engaged in rendering services in the field of company secretaryship;

(86) "prescribed" means prescribed by rules made under this Chapter;

(86a) “programme” means any audio or visual matter, live or recorded, which is intended to be disseminated by transmission or electromagnetic waves through space or through cables intended to be received by the general public either directly or indirectly through the medium of relay stations;

(86b) “programme producer” means a commercial concern which produces a programme on behalf of another person;

(87) "rail travel agent" means any person engaged in providing any service connected with booking of passage for travel by rail;

(88) "real estate agent" means a person who is engaged in rendering any service in relation to sale, purchase, leasing or renting of real estate and includes a real estate consultant;

(89) "real estate consultant" means a person who renders in any manner, either directly or indirectly, advice, consultancy or technical assistance, in relation to evaluation, conception, design. Development, construction, implementation, supervision, maintenance, marketing, acquisition or management, of real estate;

(89a) “recognized association” has the meaning assigned to it in clause (j) of section 2 of the Forward Contracts (Regulation) Act, 1952 9 74 of 1952);

(89b) “registered association” has the meaning assigned to it in clause (f) of section 2 of the Forward Contracts (Regulation) Act, 1952 9 74 of 1952);

(90) "recognized stock exchange" has the meaning assigned to it in clause (f) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(91) "rent-a-cab scheme operator" means any person engaged in the business of renting of cabs;

(91a) residential complex" means any complex comprising of—

(i) a building or buildings, having more than twelve residential units;
(ii) a common area; and
(iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system,located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.

Explanation.—For the removal of doubts, it is hereby declared that for the purposes of this clause,—

(a) "personal use" includes permitting the complex for use as residence by another person on rent or without consideration;

(b) "residential unit" means a single house or a single apartment intended for use as a place of residence;

(92) "scientific or technical consultancy" means any advice, consultancy or scientific or technical assistance rendered in any manner, either directly or indirectly, by a scientist or a technocrat or any science or technology institution or organization, to a client, in one or more disciplines of science or technology;

(93) "securities" has the meaning assigned to it in clause (h) of section 2 of the Securities Contracts (Regulation) Act, 1956 (42 of 1956);

(94) "security agency" means any commercial concern engaged in the business of rendering services relating to the security of any property, whether movable or immovable, or of any person, in any manner and includes the services of investigation, detection or verification, of any fact or activity, whether of a personal nature or otherwise, including the services of providing security personnel;

(95) "service tax" means tax leviable under the provisions of this Chapter;
(96) "ship" means a sea-going vessel and includes a sailing vessel;
(97) "shipping line" means any person who owns or charters a ship and includes an enterprise which operates or manages the business of shipping;

(97a) site formation and clearance, excavation and earthmoving and demolition" includes,—
(i) drilling, boring and core extraction services for construction, geophysical, geological or similar purposes; or
(ii) soil stabilization; or
(iii) horizontal drilling for the passage of cables or drain pipes; or
(iv) land reclamation work; or
(v) contaminated top soil stripping work; or
(vi) demolition and wrecking of building, structure or road,but does not include such services provided in relation to agriculture, irrigation, watershed development and drilling, digging, repairing, renovating or restoring of water sources or water bodies;

(98) "sound recording" means recording of sound on any media or device including magnetic storage device, and includes services relating to recording of sound in any manner such as sound cataloguing, storing of sound and sound mixing or re-mixing or any audio post-production activity;

(99) "sound recording studio or agency" means any commercial concern engaged in the business of rendering any service relating to sound recording;

(100) "steamer agent" means any person who undertakes, either directly or indirectly, --

(a) to perform any service in connection with the ship’s husbandry or dispatch including the rendering of administrative work related thereto; or

(b) to book, advertise or canvass for cargo for or on behalf of a shipping line; or

(c) to provide container feeder services for or on behalf of a shipping line;

(101) "stock broker" means a stock broker who has either made an application for registration or is registered as a stock-broker in accordance with the rules and regulations made under the Securities and Exchange Board of India Act, 1992 (15 of 1992);

102) "storage and warehousing" includes storage and warehousing services for goods including liquids and gases but does not include any service provided for storage of agricultural produce or any service provided by a cold storage;

(103) Omitted

(104) "subscriber" means a person to whom any service of a telephone connection or a facsimile or a leased circuit or pager or a telegraph or a telex has been provided by the telegraph authority;

(104a) “survey and exploration of mineral” means geological, geophysical or other prospecting, surface or sub-surface surveying or map making service, in relation to location or exploration of deposits of mineral, oil or gas;

(104b) "survey and map-making" means geological, geophysical or any other prospecting,

surface, sub-surface or aerial surveying or map-making of any kind, but does not include survey and exploration of mineral;

(105) "taxable service" means any service provided or to be provided -

(a) to an investor, by a stock-broker in connection with the sale or purchase of securities listed on a recognized stock exchange;
(b) to a subscriber, by the telegraph authority in relation to a telephone connection;
(c) to a subscriber, by the telegraph authority in relation to a pager;
(d) to a policy holder, by an insurer carrying on general insurance business in relation to general insurance businesses;
(e) to a client, by an advertising agency in relation to advertisement, in any manner;
(f) to a customer, by courier agency in relation to door-to-door transportation of time-sensitive documents, goods or articles;
(g) to a client, by a consulting engineer in relation to advice, consultancy or technical assistance in any manner in one or more disciplines of engineering;
(h) to a client, by a custom house agent in relation to the entry or departure of conveyances or the import or export of goods;
(i) to a shipping line, by a steamer agent in relation to a ship’s husbandry or dispatch or any administrative work related thereto as well as the booking, advertising or canvassing of cargo, including container feeder services;
(j) to a client, by a clearing and forwarding agent in relation to clearing and forwarding operations, in any manner;
(k) to a client, by a manpower recruitment agency in relation to the recruitment or supply of manpower, temporarily or otherwise, in any manner;
(l) to a customer, by an air travel agent in relation to the booking of passage for travel by air;
(m) to a client, by a Mandap keeper in elation to the use of Mandap in any manner including the facilities provided or to be provided to the client in relation to such use and also the services, if any provided or to be provided as a caterer;
(n) to any person, by a tour operator in relation to a tour;
(o) to any person, by a rent-a-cab scheme operator in relation to the renting of a cab;
(p) to a client, by an architect in his professional capacity, in any manner;
(q) to a client, by an interior decorator in relation to planning, design or beautification of spaces, whether manmade or otherwise, in any manner;
(r) to a client by a management consultant in connection with the management of any organization, in any manner;
(s) to a client, by a practising chartered accountant in his professional capacity, in any manner;
(t) to a client, by a practising cost accountant in his professional capacity, in any manner;
(u) to a client, by a practising company secretary in his professional capacity, in any manner;
(v) to a client, by a real estate agent in relation to real estate;
(w) to a client, by a security agency in relation to the security of any property or person, by providing security personnel or otherwise and includes the provision of services of investigation, detection or verification of any fact or activity;
(x) to a client, by a credit rating agency in relation to credit rating of any financial obligation, instrument or security;
(y) to a client, by a market research agency in relation to market research of any product, service or utility, in any manner;
(z) to a client, by an underwriter in relation to underwriting, in any manner;
(za) to a client, by a scientist or technocrat or any science or technology institution or organization, in relation to scientific or technical consultancy;
(zb) to a customer, by a photography studio or agency in relation to photography, in any manner;
(zc) to a client, by any commercial concern in relation to holding of convention, in any manner;
(zd) to a subscriber, by the telegraph authority in relation to a leased circuit;
(ze) to a subscriber, by the telegraph authority in relation to a communication through telegraph;
(zf) to a subscriber, by the telegraph authority in relation to a communication through telex;
(zg) to a subscriber, by the telegraph authority in relation to a facsimile communication;
(zh) to a customer, by a commercial concern, in relation to on-line information and database access or retrieval or both in electronic form through computer network, in any manner;
(zi) to a client, by a video production agency in relation to video-tape production, in any manner;
(zj) to a client, by a sound recording studio or agency in relation to any kind of sound recording;
(zk) to a client, by a broadcasting agency or organization in relation to broadcasting, in any manner and, in the case of broadcasting agency or organisation, having its head office situated in any place outside India, includes service provided by its branch office or subsidiary or representative in India or any agent appointed in India or by any person who acts on its behalf in any manner, engaged in the activity of selling of time slots for broadcasting of any programme or obtaining sponsorships for programmes or collecting the broadcasting charges on behalf of the said agency", the words " collecting the broadcasting charges or permitting the rights to receive any form of communication like sign, signal, writing, picture, image and sounds of all kinds by transmission of electromagnetic waves through space or through cables, direct to home signals or by any other means to cable operator, including multisystem operator or any other person on behalf of the said agency or organisation.

Explanation: For the removal of doubts, it is hereby declared that so long as the radio or television programme broadcast is received in India and intended for listening or viewing, as the case may be, by the public, such service shall be taxable service in relation to broadcasting, even if the encryption of the signals or beaming thereof through the satellite might have taken place outside India;

(zl) to a policy holder or insurer, by an actuary or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services;
(zm) to a customer, by a banking company or a financial institution including a non-banking financial company, or any other body corporate or commercial concern,in relation to banking and other financial services;
(zn) to any person, by a port or any person authorised by the port, in relation to port services, in any manner;
(zo) to a customer, by an authorised service station, in relation to any service, repair, reconditioning or restoration of motor cars, light motor vehicles; in any manner
(zp) Omitted.
(zq) to a customer, by a beauty parlour in relation to beauty treatment;
(zr) to any person, by a cargo handling agency in relation to cargo handling services;
(zs) To any person, by a cable operator, including a multisystem operator in relation to cable services;
(zt) to a customer, by a dry cleaner in relation to dry cleaning;
(zu) to a client, by an event manager in relation to event management.
(zv) to any person, by a fashion designer in relation to fashion designing;
(zw) to any person, by a health club and fitness centre in relation to health and fitness services;
(zx) to a policy holder, by an insurer carrying on life insurance business in relation to the risk cover in life insurance;
(zy) to a policy holder or insurer by an actuary, or intermediary or insurance intermediary or insurance agent, in relation to insurance auxiliary services concerning life insurance business;
(zz) to a customer, by a rail travel agent in relation to booking of passage for travel by rail;
(zza) to any person, by a storage or warehouse keeper in relation ot storage and warehousing of goods;
and the term "service provider" shall be construed accordingly;
(zzb) to a client, by a commercial concern in relation to business auxiliary service;
(zzc) to any person, by a commercial training or coaching centre in relation to commercial training or coaching;
(zzd) to a customer, by a erection, commissioning and installation agency in relation to commissioning or installation;
(zze) to a franchisee, by the franchisor in relation to franchise;
(zzf) to any person, by an internet café in relation to access of internet;
(zzg) to a customer, by a person in relation to maintenance or repair;
(zzh) to a person, by a technical inspection and analysis agency, in relation to technical testing and analysis;
(zzi) to a person, by a technical inspection and certification agency, in relation to technical inspection and certification;
(zzj) Omitted
(zzk) to a customer, by a foreign exchange broker other than those brokers in relation to banking and other financial services referred to in sub-clause (zm);
(zzl) to any person, by other port or any person authorised by that port in relation to port services, in any manner;
(zzm) to any person, by airports authority or any person authorised by it, in an airport or a civil enclave;
(zzn) to any person, by an aircraft operaot, in relation to transport of goods by aircraft;
(zzo) to an exhibitor, by the organizer of a business exhibition, in relation to business exhibition;
(zzp) to a customer, by a goods transport agency, in relation to transport of goods by road in a goods carriage;
(zzq) to any person, by a commercial concern, in relation to commercial or industrial construction service;
(zzr) to any person, by the holder of intellectual property right, in relation to intellectual property service;
(zzs) to any person, by an opinion poll agency, in relation to opinion poll;
(zzt) to a client, by an outdoor caterer;
(zzu) to any person, by a programme producer, in relation to a programme;
(zzv) to a customer, by any person, in relation to survey and exploration of mineral;
(zzw) to a client, by pandal or shamiana contractor in relation to a pandal or shamiana in any manner and also includes the services, if any, provided or to be provided as a caterer;
(zzx) to a customer, by a travel agent, in relation to booking of passage for travel;
(zzy) to any person, by a member of a recognised association or a registered association, in relation to a forward contract;
(zzz) to any person, by any other person, in relation to transport of goods other than water, through pipeline or other conduit;
(zzza) to any person, by any other person, in relation to site formation and clearance, excavation and earthmoving and demolition and such other similar activities;
(zzzb) to any person, by any other person, in relation to dredging;
(zzzc) to any person, by any other person, other than by an agency under the control of, or authorised by, the Government, in relation to survey and map-making;
(zzzd) to any person, by any other person, in relation to cleaning activity;
(zzze) to its members, by any club or association in relation to provision of services, facilities or advantages for a subscription or any other amount;
(zzzf) to any person, by any other person, in relation to packaging activity;
(zzzg) to any person, by any other person, in relation to mailing list compilation and mailing;
(zzzh) to any person, by any other person, in relation to construction of complex;

Explanation.—For the removal of doubts, it is hereby declared that where any service provided or to be provided by a person, who has established a business or has a fixed establishment from which the service is provided or to be provided, or has his permanent address or usual place of residence, in a country other than India and such service is received or to be received by a person who has his place of business, fixed establishment, permanent address or, as the case may be, usual place of residence, in India such service shall be deemed to be taxable service for the purposes of this clause;

and the term “service provider” shall construed accordingly;

(106) "technical testing and analysis" means any service in relation to physical, chemical, biological or any other scientific testing or analysis of goods or material or any immovable property but does not include testing in relation to human beings or animal;
(107) "technical testing and analysis agency" means any agency or person engaged in technical testing and analysis;
(108) "technical inspection and certification" means inspection or examination of goods or process or material or any immovable property to certify that such goods or process or material or any immovable property qualifies or maintains the specified standards including functionality, quality, utility or safety or any other characteristic or parameter, but does not include any service in relation to inspection and certification of pollution levels;
(109) "technical testing and certification agency" means any agency or person engaged in technical testing and certification;
(110) "telegraph" has the meaning assigned to it in clause (1) of section 3 of the Indian Telegraph Act, 1885 (13 of 1885);
(111) "telegraph authority" has the meaning assigned to ti in clause (6) of section 3 of the Indian Telegraph Act, 1885 (13 of 1885) and includes a person who has been granted a licence under the first proviso to sub-section (1) of section 4 of that Act;
(112) "telex" means a typed communication by using teleprinters through telex exchanges;
(113) "tour" means a journey from one place to another irrespective of the distance between such places;
(114) "tourist vehicle" has the meaning assigned to it in clause (43) of section 2 of the Motor Vehicles Act 1988 (59 of 1988);
(115) "tour operator" means any person engaged in the business of planning, scheduling, organizing or arranging tours (which may include arrangements for accommodation, sightseeing or other similar services) by any mode of transport, and includes any person engaged in the business of operating tours in a tourist vehicle covered by a permit granted under the Motor Vehicles Act, 1988 (59 of 1988) or the rules made thereunder;
(115a) “travel agent” means any person engaged in providing any service connected with booking of passage for travel, but does not include air travel agent and rail travel agent;
(116) "underwriter" has the meaning assigned to it in clause (f) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rules, 1993;
(117) "underwriting" has the meaning assigned to it in clause (g) of rule 2 of the Securities and Exchange Board of India (Underwriters) Rule, 1993;
(118) "vessel" has the meaning assigned to it in clause (z) of section 2 of the Major Port Trust Act, 1963 (38 of 1963);
(119) "video production agency" means any professional videographer or any commercial concern engaged in the business of rendering services relating to video-tape production;
(120) video-tape production" means the process of any recording of any programme, event or function on a magnetic tape or on any other media or device and includes services relating thereto such as editing, cutting, colouring, dubbing, title printing, imparting special effects, processing, adding, modifying or deleting sound, transferring from one media or device to another, or undertaking any video post-production activity, in any manner;
(121) words and expressions used but not defined in this Chapter and defined in the Central Excise Act, 1944 (1 of 1944) or the rules made thereunder, shall apply, so far as may be in relation to service tax as they apply in relation to a duty of excise.

65A. Classification of taxable services -

(1) For the purposes of this chapter classification of taxable services shall be determined according to terms of sub-clauses of clause (105) of section 65;
(2) when for any reason, a taxable service is, prima facie, classifiable under two or more sub-clauses or clause (105) of section (65), classification shall be affected as follows :-

(a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description;
(b) composite services consisting of a combination of different services which can not be classified in the manner specified in clause (a) shall be classified as if it consisted in the service which gives them their essential character;
(c) when a service can not be classified in the manner specified in clause (a) or clause (b), it shall be classified under sub-clause which occurs first among the sub-clauses which equally merit consideration;

66. Charge of service tax –

There shall be levied a tax (hereinafter referred to as the service tax) at the rate of ten per cent of the value of the taxable services with in sub-clauses (a) to (z) and (za) to (zz) and clause (zza) to (zzzh)of clause (105) of section 65 and collected in such manner as may be prescribed;

67. Valuation of taxable services for charging service tax.– For the purposes of this Chapter, the value of any taxable service shall be the gross amount charged by the service provider of such service provided or to be provided by him.

Explanation. 1. – for the removal of doubts, it is hereby declared that the value of a taxable service, as the case may be, includes, --

(a) the aggregate of commission or brokerage charged by a broker on the sale of purchase of securities including the commission or brokerage paid by the stock broker to any sub-broker;
(b) the adjustments made by the telegraph authority from any deposits made by the subscriber at the time of application for telephone connection or pager or facsimile or telegraphic or telex or for leased circuit;
(c) the amount of premium charged by the insurer from the policy holder;
(d) the commission received by the air travel agent from the airline;
(e) the commission, fee or any other sum received by an actuary, or intermediary or insurance intermediary or insurance agent from the insurer;
(f) the reimbursement received by the authorised service station from manufacturer for carrying out any service of any motor car, maxi-cab or two wheeled motor vehicle manufactured by such manufacturer, and
(g) the commission or any amount received by the rail travel agent from the Railways or the customer,but does not include, -

(i) initial deposit made by the subscriber at the time of application for telephone connection or pager or facsimile or telegraph or telex or leased circuit
(ii) the cost of unexposed photography films, unrecorded magnetic tape or such other storage devices if any, sold to the client during the course of providing service;
(iii) the cost of parts or accessories, if any, sold to the customer during the course of service or repair of motor cars or two wheeled motor vehicles;
(iv) the airfare collected by air travel agent in respect of service provided by him; and
(v) the rail fare collected by rail travel agent in respect of service provided by him.
(vi) the cost of parts or other material, if any, sold to the customer during the course of providing maintenance or repair service; and
(vii) the cost of parts or other material, if any, sold to the customer during the course of providing commissioning or installation.

Explanation 2.- Where the gross amount charged by a service provider is inclusive of service tax payable, the value of taxable service shall be the amount as with the addition of tax payable, is equal to the gross amount charged.

Explanation 3.—For the removal of doubts, it is hereby declared that the gross amount charged for the taxable service shall include any amount received towards the taxable service before, during or after provision of such service.

68. Payment of service tax. –

(1) Every person providing taxable service to any person shall pay service tax at the rate specified in section 66 in such manner and within such period as may be prescribed.

(2) Notwithstanding anything contained in sub-section (1), in respect of any taxable service notified by the Central Govt. in the Official Gazette, the service tax thereon shall paid by such person and in such manner as may be prescribed at the rate specified in section 66 and all the provisions of this chapter shall apply to such person as if he is the person liable for paying the service tax in relation to such service.

69. Registration –

(1) Every person liable to pay the service tax under this chapter or the rules made there under shall, within such time and in such manner and in such form as may be prescribed, make an application for registration to the Superintendent of Central Excise.

(2) The Central Government may, by notification in the Official Gazette, specify such other person or class of persons, who shall make an application for registration within such time and in

such manner and in such form as may be prescribed;

70. Furnishing of Returns. –

(1) Every person liable to pay the service tax shall himself assess the tax due on the services provided by him and shall furnish to the Superintendent of Central Excise, a return in such form and in such manner and at such frequency as may be prescribed.

(2) The person or class of persons notified under sub-section (2) of section 69, shall furnish to the Superintendent of the Central Excise, a return in such form and in such manner and at such frequency as may be prescribed;

71. Omitted

71A. Filing of return by certain customers.-

Notwithstanding anything contained in the provisions of section 69 and section 70, the provisions thereof shall not apply to a person referred to in the provisio to sub-section (1) of section 68 fir the filing of return in respect of service tax for the respective period and service specified therein and such person shall furnish return to the Central Excise Officer within six months from the day on which the Finance BIll 2003 receives the assent of President in the prescribed manner on the basis of the self assessment of the service tax and the provisions of section 71 shall apply accordingly.

72. Omitted.
73. Recovery of service tax not levied or paid or short levied or short paid or erroneously refunded . –

(1) Where any service tax has not been levied or paid or has been short levied or short paid or erroneously refunded, Central Excise Officer, within one year from the relevant date, serve notice on the person chargeable with service tax which has not been levied or paid or which has been short levied or short paid or the person to whom such tax refund has been erroneously made, requiring him to show cause why he should not pay the amount specified in the notice:

Provided that where any service tax has not been levied or paid or has been short levied or short paid or erroneously refunded by reason of-

(a) fraud; or
(b) collusion; or
(c) willful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of service tax

by the person chargeable with the service tax or his agent, the provisions of this sub-section shall have effect, as if, for the words “one year”, the words “five years” had been substituted.

Explanation. - Where the service of the notice is stayed by an order of a court, the period of such stay shall be excluded in computing the aforesaid period of one year or five years, as the case may be.

(2) The Central Excise Officer shall, after considering the representation, if any, made by the person on whom notice is served under sub-section (1), determine the amount of service tax due from such person (not being in excess of the amount specified in the notice) and thereupon such person shall pay the amount so determined.

(3) where any service tax has escaped assessment or has been under assessed or service tax has not been paid or has been short paid or erroneously refunded, the person chargeable with service tax, may pay the amount of tax, chargeable or erroneously refunded, on the basis of his own ascertainment of such tax or on the basis of tax ascertained by Central Excise officer before service of notice on him under sub-section (1) in respect of service tax, and inform the Central Excise Officer of such payment in writing, who, on receipt of such information shall not serve any notice under sub-section (1) in respect of service tax so paid;

Provided that the Central Excise officer may determine the amount of short payment of service tax or erroneously refunded service tax, if any, which in his opinion has not been paid by such person and then, the Central Excise officer shall proceed to recover such amount in the manner specified in this section and the period of “one year” referred to sub-section (1) shall be counted from the date of receipt of such information of payment.

Explanation : For removal of doubts it is hereby declared that interest under section (75) shall be payable on the amount paid by the person under this sub-section and also on the amount of short payment of service tax, if any, as may be determined by the Central Excise officer, but for this sub-section;

(4) Nothing contained in sub-section (3) shall apply to a case where any service tax has not been levied or paid or short levied or short paid or erroneously refunded by reason of-

(a) fraud; or
(b) collusion; or
(c) willful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of service tax
(5) The provisions of sub-section (3) shall not apply in any case where the service tax had become payable or ought to have been paid before the 14th day of May,2003.
(6) For the purposes of this section, "relevant date" means,-

(i) in the case of taxable service in respect of which service tax has escaped assessment or has been under-assessed or has not been paid or has been short-paid-

(a) where under the rules made under this Chapter, a periodical return, showing particulars of service tax paid during the period to which the said return relates, is to be filed by an assessee, the date on which such return is so filed;

(b) where no periodical return as aforesaid is filed, the last date on which such return is to be filed under the said rules;

(c) in any other case, the date on which the service tax is to be paid under this Chapter or the rules made thereunder;

(ii) in a case where the service tax is provisionally assessed under this Chapter or the rules made thereunder, the date of adjustment of the service tax after the final assessment thereof;
(iii) in a case where any sum, relating to service tax, has erroneously been refunded, the date of such refund.

74. Rectification of mistake. –
(1) With a view to rectifying any mistake apparent from the record, the Central Excise officer who passed any order under the provisions of this Chapter may, within two years of the date on which such order was passed, amend the order.

(2) Where any matter has been considered and decided in any proceeding by way of appeal or revision relating to an order referred to in sub-section (1), Central Excise officer passing such order may, notwithstanding anything contained in any law for the time being in force, amend the order under that sub-section in relation to any matter other than the matter which has been so considered and decided.

(3) Subject to the other provisions of this section, the Central Excise officer concerned –

(a) may make an amendment under sub-section (1) of his own motion; or
(b) shall make such amendment if any mistake is brought to his notice by the assessee or the Commissioner of Central Excise or the Commissioner of Central Excise (Appeals).
(4) An amendment, which has the effect of enhancing an assessment or reducing a refund or otherwise increasing the liability of the assessee, shall not be made under this section unless the Central Excise officer concerned has given notice to the assessee of his intention so to do and has allowed the assessee a reasonable opportunity of being heard.
(5) Where an amendment is made under this section, an order shall be passed in writing by the Central Excise officer concerned.
(6) Subject to the other provisions of this Chapter where any such amendment has the effect of reducing the liability of an assessee or increasing the refund, the Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise shall make any refund which may be due to such assessee.
(7) Where any such amendment has the effect of enhancing the liability of an assessee or reducing the refund already made, the Central Excise officer shall make an order specifying the sum payable by the assessee and the provisions of this Chapter shall apply accordingly.

75. Interest on delayed payment of Service Tax – Every person, liable to pay the tax in accordance with the provisions of section 68 or rules made thereunder, who fails to credit the tax or any part thereof to the account of the Central Government within the period prescribed, shall pay simple interest at such rate of not below ten per cent and not exceeding thirty six per cent per annum, as is for the time being fixed by the Central Government, by notification in the Official Gazette for the period by which such crediting of the tax or any part thereof is delayed.

75A. Omitted

76. Penalty for failure to pay service tax. – Any person, liable to pay service tax in accordance with the provisions of section 68 or the rules made thereunder, who fails to pay such tax shall pay in addition to paying such tax, and interest on that tax in accordance with the provisions of section 75, a penalty which shall not be less than one hundred rupees for everyday during which such failure continues, but which may extend to two hundred rupees for every day during which such failure continues, so, however, that the penalty under this clause shall not exceed the amount of service tax that he failed to pay.

77. Penalty for contravention of any provision for which no penalty is provided. – Whoever contravenes any of the provisions of this Chapter or nay rule made thereunder for which no penalty is separately provided in this Chapter, shall be liable to a penalty which may extend to an amount not exceeding one thousand rupees.

78. Penalty for suppressing value of taxable service. –

Provided that where any service tax has not been levied or paid or has been short levied or short paid or erroneously refunded by reason of-
(a) fraud; or
(b) collusion; or
(c) willful mis-statement; or
(d) suppression of facts; or
(e) contravention of any of the provisions of this Chapter or the rules made thereunder with intent to evade payment of service tax

The person, liable to pay such service tax or erroneous refund, as determined under sub-section (2) of Section 73, shall also be laible to pay a penalty, in addition to such service tax and interest thereon, if nay, payable by him, which shall not be less than, but which shall not exceed twice, the amount of service tax so not levied, or paid or short levied or short paid or erroneously refunded;

Provided that where such service tax as determined under sub-section( 2) of section 73 and the interest payable thereon under section (75), is paid within 30 days form the date of communication of order of the Central Excise officer determining such service tax, the amount of penalty liable to be paid by such person shall be twenty five per cent of the service tax so determined;

Provided further that the benefit of reduced penalty under the first provisio shall be available only if the amount of penalty so determined has also been paid within the period of thirty days referred to in that proviso.

Provided also that in case where the service tax is determined to be payable is reduced or increased by the Commissioner (Appeals), the Appellate Tribunal or as the case may be the Court, then, for the purposes of this ection, the service tax as reduced or increased, as the case may be, shall be taken into account.Provided also that in case where the service tax determined to be payable is increased by the Commissioner (ppeals), the Appellate Tribunal or, as the case may be, the court, then the benefit of reduced penalty under the first proviso shall be avai;able, if the service tax so increased, the interest payable thereon and twenty five percent of the consequential increase of penalty have been paid within thirty days of communication of the order by which such increase in service tax takes effect.

Explanation : For the removal of doubts, it is hereby declared that -

(1) the provisions of this section shall also apply to cases in which an order determining the service tax under sub-section (2) of section 73 relates to notices issued prior to the date on which the Finance Bill, 2003 receives the asent of the President;

(2) the amount paid to the credit of Central Government prior to the date of communication of the order referred to in the first proviso or the fourth proviso shall be adjusted against the total amount due from such person.

79.Omitted

80. Penalty not to be imposed in certain cases. – Notwithstanding anything contained in the provisions of section 76, section 77, or section 78, no penalty shall be imposable on the assessee for any failure referred to in said provisions, if the assessee proves that there was reasonable cause for the said failure.

81. Omitted.

82. Power to search premises –

(1) If the Commissioner of Central Excise has reason to believe that any documents or book or things which in his opinion will be any useful for or relevant to proceedings under this Chapter are secreted in any place, he may authorize any Assistant Commissioner of Central Excise or, as the case may be, Deputy Commissioner of Central Excise to search for and seize or may himself search for and seize, such documents or books or things.

(2) The provisions of the Code of Criminal Procedure, 1973 (2 of 1974), relating to searches, shall, so far as may be, apply or searches under this section as they apply to searches under that Code.

83. Application of certain provisions of Act 1 of 1944 – The provisions of the following section of the Central Excise Act, 1944 ( 1 of 1944), as in force from time to time, shall apply, so far as may be, in relation to service tax as they apply in relation to a duty of excise: -

9C, 9D, 11, 11B, 11BB, 11C, 11D, 12, 12A, 12B. 12C, 12D, 12E, 14, 15, 33A, 35F to 35-O (both inclusive), 35Q, 36, 36A, 36B, 37A, 37B, 37C, 37D and 40.

83A. Where under this Chapter or the rules made thereunder any person is liable to a penalty, such penalty may be adjudged by the Central Excise Officer conferred with such power as the Central Board of Excise and Customs constituted under the Central Boards of Revenue Act, 1963, may, by notification in the Official Gazette, specify;

84. Revision of orders by the Commissioner of Central Excise.-

(1) The Commissioner of Central Excise may call for the record of a proceeding under this Chapter in which an adjudicating authority subordinate to him has passed any decision or order and may make such inquiry or cause such inquiry to be made and, subject to the provisions of this Chapter, pass such order thereon as he thinks fit.

(2) No order, which is prejudicial to the assessee shall be passed under this section unless the assessee has been given an opportunity of being heard.
(3) The Commissioner of Central Excise shall communicate the order passed by him under sub-section (1) to the assessee, such adjudicating authority and the Board.

(4) No order under this section shall be passed by the Commissioner of Central Excise in respect of any issue if an appeal against such is pending before the Commissioner of Central Excise (Appeals).

(5) No order under this section shall be passed after the expiry of two years from the date on which the order sought to be revised has been passed.

85. Appeals to the Commissioner of Central Excise (Appeals). –

(1) Any person aggrieved by any decision or order passed by an adjudicating authority subordinate to the Commissioner of Central Excise may appeal to the Commissioner of Central Excise (Appeals)
(2) Every appeal shall be in the prescribed from and shall be verified in the prescribed manner.
(3) An appeal shall be presented within three months from the date of receipt of the decision or order of such adjudicating authority relating to service tax, interest or penalty under this Chapter:

Provided that the Commissioner of Central Excise (Appeals) may, if he is satisfied that the appellant was prevented by sufficient cause from presenting the appeal within the aforesaid period of three months, allow it to be presented within a further period of three months.

(4) The Commissioner of Central Excise (Appeals) shall hear and determine the appeals and, subject to the provisions of this Chapter, pass such orders as he thinks fit and such orders may include an order enhancing the service tax, interest or penalty :

Provided that an order enhancing the service tax, interest or penalty shall not be made unless the person affected thereby has been given a reasonable opportunity of showing cause against such enhancement.

(5) Subject to the provisions of this Chapter, in hearing the appeals and making orders under this section, the Commissioner of Central Excise (Appeals) shall exercise the same powers and follow the same procedure as he exercise and follows in hearing the appeals and making orders under the Central Excise Act, 1944 (1 of 1944).

86. Appeals to Appellate Tribunal –

(1) Any assessee aggrieved by an order passed by a Commissioner of Central Excise under Section 73 or Section 83 or section 84, or an order passed by a Commissioner of Central Excise (Appeals) under section 85, may appeal to the Appellate Tribunal against such order.

[(2) The Board may, if it objects to any order passed by the Commissioner of Central Excise under Section 73 or Section 83 or section 84, direct the Commissioner of Central Excise to appeal to the Appellate Tribunal against the order.

(2A) The Commissioner of Central Excise may, if he objects to any order passed by the Commissioner of Central Excise (Appeals) under section 85, direct any Central Ezcise Officer to appeal on his behalf to the Appellate Tribunal against the order].
(3) Every appeal under sub-section (1) [or sub-section (2) or sub-section (2A)] shall be filed within three months of the date on which the order sought to be appealed against is received by the assessee, the Board or by the Commissioner of Central Excise, as the case may be.

(4) The Commissioner of Central Excise or any Central Excise Offiecr subordinate to him or the assessee, as the case may be, on receipt of a notice that an appeal against the order of the Commissioner of Central Excise or the Commissioner of Central Excise (Appeals) has been preferred under sub-section (1) or sub-section (2) or sub-section (2A) by the other party may, notwithstanding that he may not have appealed against such order or any part thereof, within forty-five days of the receipt of the notice, file a memorandum of cross-objections, verified in the prescribed manner, against any part of the order of the Commissioner of Central Excise or the Commissioner of Central Excise (Appeals), and such memorandum shall be disposed of by the Appellate Tribunal as if it were an appeal presented within the time specified in sub-section (3).

(5) The Appellate Tribunal may admit an appeal or permit the filing of a memorandum of cross-objections after the expiry of the relevant period referred to in sub-section (3) or sub-section (4) if it is satisfied that there was sufficient cause for not presenting it within that period.

(6) An appeal to the Appellate Tribunal shall be in the prescribed form and shall be verified in the prescribed manner and shall, irrespective of the date of demand of service tax and interest or of levy of penalty in relation to which the appeal is made, be accompanied by a fee of,-

(a) Where amount of service tax and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is five lakh rupees or less, one thousand rupees;

(b) Where amount of service tax and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates more than five lakh rupees but not exceeding fifty lakh rupees, five thousand rupees

(c) Where amount of service tax and interest demanded and penalty levied by any Central Excise Officer in the case to which the appeal relates is more than fifty lakh rupees, ten thousand rupees

Provided that no fee shall be payable in case of an appeal referred to in sub-section (2) or sub-section (2A) or a memorandum of cross objections referred to in sub-section (4).

(6A) Every application made before the Appellate Tribunal,-

(a) In an appeal for grant of stay or for rectification of mistake or any other purpose; or

(b) For restoration of appeal or an application,
Shall be accompanied by a fee of five hundred rupees:

Provided that no fee shall be payable in case of an application filed by a Commissioner of Central Excise or Assistant Commissioner of Central Excise or or Deputy Commissioner of Central Excise, as the case may be, under this sub-section

(7) Subject to the provisions of this Chapter, in hearing the appeal and making orders under this section, the Appellate Tribunal shall exercise the same powers and follow the same procedure as it exercise and follows in hearing the appeals and making orders under the Central Excise Act, 1944 (1 of 1944).

[(87) * * *]
[(88) * * *]

[(89) * * *] Omitted.

[(90) * * *]

[(91) * * *]

[(92) * * *]

93. Power to grant exemption from service tax. –

(1) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by notification in the Official Gazette, exempt generally or subject to such conditions as may be specified in the notification, taxable service of any specified description from the whole or any part of the service tax leviable thereon.
(2) If the Central Government is satisfied that it is necessary in the public interest so to do, it may, by special order in each case, exempt any taxable service of any specified description from the payment of whole or any part of the service tax leviable thereon, under circumstances of exceptional nature to be stated in such order.]

94. Power to make rules. -

(1) The Central Government may, by notification in the Official Gazette, make rules for carrying out the provisions of this Chapter.
(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely: -

(a) collection and recovery of service tax under sections 66 and 68;

(b) the time and manner and the form in which application for registration shall be made under subsections (1) and (2) of section 69;

(c) the form, manner and frequency of the returns to be furnished under subsections (1) and (2) of section 70;

(cc) the manner of furnishing return under section 71A.

(d) the form in which appeal under section 85 or under sub-section (6) of section 86 may be filed and the manner in which they may be verified;

(e) the manner in which the memorandum of cross objections under sub-section (4) of section 86 may be verified;
(ee) the credit of service tax paid on the services consumed for providing a taxable service in case where the services consumed and the service provided fall in the same category of taxable service;

(eee) the credit of service tax paid on the services consumed or duties paid or deemed to have been paid on goods used for providing a taxable service.

(f) any other matter which by this Chapter is to be or may be prescribed.

(3) The power to make rules conferred by this section shall on the first occasion of the exercise thereof include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Chapter come into force.

(4) Every rule made under this Chapter and every notification issued under section 93 shall be laid, as soon as may be, after it is made or issued, before each House of Parliament, while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule should not be made or the notification should not be issued, the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.

95. Power to remove difficulties –

(1) If any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance Act, 2002, the Central Government may, by order published in the Official Gazette, which is not inconsistent with the provisions of this Chapter remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of the Finance Act, 2002 incorporating such taxable services in this Chapter come into force.

(1A) If any difficulty arises in respect of implementing, or assessing the value of, any taxable service incorporated in this Chapter by the Finance Act, 2003, the Central Government may, by order published in the Official Gazette, which is not inconsistent with the provisions of this Chapter remove the difficulty:

Provided that no such order shall be made after the expiry of a period of two years from the date on which the provisions of the Finance Act, 2003 incorporating such taxable services in this Chapter come into force.

(2) Every order made under this section shall be laid, as soon as may be after it is made, before each House of the Parliament.

96. Consequential amendment.– In the Economic Offences (Inapplicability of Limitation) Act, 1974 (12 of 1974), in the Schedule, after entry 7 relating to the Central Excise Act, 1944 (1 of 1944), the following entry shall be inserted, namely:-

"7A. Chapter V of the Finance Act, 1994."

96A. Advance Rulings –