Service Tax Notice

Kindly give your valuable opinion in following case

Mr. A is engaged in providing service of lifting, loading & unloading. He has been in this business since last many years. Value of service provided by him in past years as well as in current year also exceeds threshold limit.

However he has not obtained any service tax registration.

Now he has received notice from service tax department asking for details about service tax registration, audit report, accounts etc.

1.      At this point of time, what should be done? What is the best alternative available to him?

2.      Whether he is liable to pay amount of service tax from his pocket for past years also (He has not collected any amount for service tax)?

3.      What are possible consequences like interest, penalty?

Also suggest best possible solution for such assessee who have not received any notice from service tax department but want to take new registration.

1.      Whether they should approach a fresh or

2.      It should be taken retrospectively