Service Tax Notice Reply

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Sample Reply Letter for Show Cause Notice of Service Tax / Central Excise for Additional Tax Penalty Payment in India in word/ .doc Format

RSL/STC/2013-14/009

The Superintendent Audit
Central Excise Customs & Service Tax Commissionerate
Mumbai – 1
14/1 Nariman Point
Mumbai 415 212

Sub : Memo No.3 dtd.28.10.2013

Dear Sir,

Please refer your Memo No.3 dtd.28.10.13 issued in course of audit, requiring us to give details of certain expenses incurred in 2012-13 and to pay Service Tax on remaining amount, if any. It is contended by you that out of an amount of Rs.859.14 lacs, Rs.300.26 lacs escaped from service tax net which includes forwarding and octroi charges.

As the constituents of the balance amount of Rs.300.26 lacs (i.e. individual items of expenses forming that amount) have not been detailed/dealt by you in your Memo, we are unable to exactly pin point the reasons for such non-payment of Service Tax allegedly stated to be due and payable by us and we request you to please furnish the same for our further clarification on the same.

However, it may be stated that Service Tax is paid by us as per the provisions of law laid down therefore against amounts of expenses on their actual payment during the financial year as also attracting Service Tax (The ST Return figures are also calculated on the basis of payment made to the transporters against their bills submitted monthwise and balance amount is being carried forward to the next month and hence on balance amount the Service Tax is paid as and when the bills are paid). Accordingly on the amount of Rs.7,78,59,498.48 constituting the expenses given below, the Service Tax appears to be payable, if applicable and if the bill of actual expenses under such head would have been paid during the year and not carried forward, but for which details could not be worked out by us.

Head of expenses
Amount(Rs)
Freight Inward
27,54,983.00
Transportation Outward
1,62,613.00
Freight outward Factory & HO
6,63,50,488.00
Freight outward – with cost centre
85,91,414.48

Similarly, the amount of Rs.8,61,50,472.42 as pointed out by you also constitute expenses on octroi and cess of service tax and on which service tax is not payable and of other expenses on which service providers have not raised their bill for service tax (presumably the service provider not crossing the exemption limit) and as such service tax have not been paid on the same. We are giving below the list of amount of such expenses amounting to Rs.82,90,973.94:

Head of expenses
Amount(Rs)
Marking & loading charges
8,63,833.00
Stacking charges
24,818.50
Service charges
45,825.00
Octroi inward
14,84,858.00
Loading & unloading charges
23,39,248.00
Delivery charges
20,80,570.00
Freight Outward – Branch
11,72,650.44
Education Cess on Service Tax
220.00
Higher Education Cess on Service Tax
109.00
Loading & unloading charges (branch) Imported M/c
22,250.00
Loading & unloading charges (branch) HRC
3,850.00
Expenses for export sale
2,52,742.00


In view of the above, please furnish the details of Rs.300.26 lacs for our checking and comments. However, according to us nothing is due to be paid by us towards service tax.


Thanking you,

Yours faithfully,
For Rocket Sales Ltd.


Neetu Singh
GM – Commercials

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