Section 27
Power to assess
(a)
any taxable person—
(i)
fails to apply for registration under section 13;
(ii)
fails to furnish a return under section 26; or
(iii)
furnishes a return which appears to the Director
General to be incomplete or incorrect;
(aa) any foreign service provider fails to apply for registration under section 56C;
(ab) any foreign registered person—
(i)
fails to furnish a return under section 56H; or
(ii)
furnishes a return which appears to the Director
General to be incomplete or incorrect; or
(b)
any person other than a taxable person who, in carrying on his business, acquires any imported taxable service—
(i)
fails to furnish a declaration under section 26A; or
(ii)
furnishes a declaration which appears to the Director
General to be incomplete or incorrect, the Director General may assess to the best of his judgment the amount of service tax due and payable, and the penalty payable under subsection 26(7), 26A(3) or 56I(2), as the case may be, if any, by the taxable person or foreign registered person or the person who is referred to in paragraph (1)(b) and shall forthwith notify him of the assessment in writing.
(2)
Where an amount has been paid to any person as being a refund of service tax under this Act which ought not to have been paid to him, the Director General may assess the amount of the refund as being service tax due and payable by him and shall forthwith notify him of the assessment in writing.
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(3)
The assessment under subsections (1) and (2) shall not be made more than six years from the date on which the service tax was due and payable or from the date on which the refund of service tax was made, as the case may be, except where in the opinion of the Director General any form of fraud or willful default has been committed by or on behalf of any person in relation to the service tax or refund, the Director
General may, for the purposes of making good any loss of service tax or payment of refund of service tax attributable to the fraud or willful default, make an assessment at any time.
(4)
Where—
(a)
the Director General has made an assessment of service tax under subsection (1) in respect of subparagraph (1)(a)(i)
or (ii);
(b)
the service tax assessed under paragraph (a) has been paid but no return has been furnished for the taxable period to which the assessment relates; and
(c)
the taxable person fails to furnish a return for any subsequent taxable period, the Director General may, as he deems fit, assess an amount of service tax greater than that which he otherwise would have considered to be appropriate.
(5)
Where it appears to the Director General that the amount which ought to have been assessed in an assessment under subsection (1), (2)
or (4) exceeds the amount which was so assessed, he may—
(a)
under the same provision as that assessment was made; and
(b)
in the case of a taxable person or foreign registered person, within the taxable period during which the assessment could have been made, or in the case of the person referred to in paragraph (1)(b), within the period under subsection 26A(1),
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make a supplementary assessment of the amount of the excess and shall forthwith notify the person in writing accordingly.
(6)
Where an amount of service tax and penalty, if any, has been assessed and notified pursuant to subsection (1), (2) or (5), it shall be deemed to be an amount of service tax due and payable, and penalty payable, by the person and may be recovered accordingly and the amount of service tax and penalty, if any, shall be paid by the person, whether or not that person appeals against the assessment, to the
Director General unless or except to the extent that the assessment has been withdrawn or reduced by the Director General.
(7)
The Director General may make any alteration in or addition to the assessment made under this section as he deems fit to ensure the correctness of the assessment and shall forthwith notify the person in writing.