27 February 2024
The Asst. Commissioner (ST)-X Circle, Chennai, transferred the arrears in Form-30 to "Y" Circle, Chennai outer. The notice received from AC "Y" Circle,dated 21-2-2024, addressed to AEE P. Ltd. The notice is related to A Engg Enterprises for the period of 2007–08 to 2010–11. The notice mentioned, "They also did business in the name and style of Tvl (M/s) A Engineering Enterprises.". The AC advised in the notice to pay the arrears and slated PH for 29-2-2024. Is this notice on the suspected case from 2007–11, after 13–16 years? What is the obligation for the P.Ltd. company, converted in 2012, now? Please advise all the options and mandatory things, pros and cons. Thanks in advance.
11 July 2024
Based on the details provided, it appears that A Engg Enterprises (now P. Ltd.) has received a notice related to alleged arrears for the period from 2007–08 to 2010–11, addressed to them under their previous business name as well. Here’s a structured approach to understand and address the situation:
### Understanding the Notice
1. **Nature of Notice**: The notice pertains to arrears for a period ranging from 2007–08 to 2010–11, potentially related to Service Tax (ST) liabilities. It mentions that the business was conducted under the name "Tvl (M/s) A Engineering Enterprises" during that period.
2. **Transfer and Jurisdiction**: The arrears have been transferred from AC "X" Circle to AC "Y" Circle in Chennai. This transfer is likely due to jurisdictional changes or reassignment within the tax department.
3. **Payment Advice and Hearing**: The notice advises A Engg Enterprises to pay the arrears and sets a Personal Hearing (PH) for 29-2-2024. This indicates that the tax department wants to discuss and resolve the outstanding liabilities.
### Obligations and Options for A P. Ltd. (formerly A Engg Enterprises)
#### Obligations:
1. **Respond to the Notice**: It is crucial to respond to the notice within the stipulated timeline (before 29-2-2024). Ignoring the notice could lead to adverse consequences such as penalty, interest, or legal actions.
2. **Attend the Personal Hearing**: Attend the PH scheduled on 29-2-2024 with all relevant documents and explanations regarding the alleged arrears.
3. **Pay Arrears (if applicable)**: If the arrears are found to be legitimate and payable, make the necessary payments as advised by the tax authorities.
#### Options and Considerations:
1. **Verify the Claim**: Verify the validity and accuracy of the arrears claimed by reviewing past records and documents related to the business activities during 2007–08 to 2010–11.
2. **Legal Advice**: Consider seeking legal advice from a tax consultant or lawyer specializing in indirect taxes to understand the implications and explore possible defenses or mitigations.
3. **Settlement or Negotiation**: Depending on the circumstances, you may negotiate a settlement with the tax authorities if the arrears are substantial or if there are grounds for appeal or reduction.
4. **Statute of Limitations**: In some cases, there could be limitations on the recovery of taxes beyond a certain period. Verify if the notice is within the applicable statutory limitations.
5. **Business Transition**: Since A Engg Enterprises was converted into A P. Ltd. in 2012, assess how the transition impacts the liabilities and responsibilities concerning past business activities.
### Conclusion
Given the complexity and historical nature of the notice, it is essential to handle it promptly and diligently. Engaging with the tax authorities, preparing relevant documentation, and possibly seeking professional advice will help in responding effectively. Compliance with tax obligations is critical to avoid further penalties or legal actions.
11 July 2024
Thank you for your time and advise. I attended the PH at Y Circle, where the officer suggested I write a letter requesting certified copies of orders and an extract of Form V from the AC-X Circle. I followed this advice, but have not received any response since then.
CAclubindia
