Rectification of any apparent mistake in any order under service tax ( sec 74)
In terms of Section 74 of the Finance Act, 1994 in the event any mistake apparent from the record is noticed by the Deputy/Assistant Commissioner of Central Excise/Service Tax may rectify the mistake within a period of two years of the passing of the order.
Mistake apparent from records means mistake must be obvious and must not involve a debatable point of law. Thus, mistake apparent from records should be such that it is self-evident from record itself and it does not involve long drawn arguments.
The rectification can also be done of the orders subjected to appellate or revision proceedings but in this case only that portion of the order which has not been considered or decided in appeal or revision can be rectified.
The amendment may be made either suo moto or on it being brought to the notice either by service provider or Commissioner of Central Excise or Commissioner of Central Excise (Appeals).
However, in case the rectification enhances the tax liability or reduces the refund it can be done once the service provider has been given a notice and opportunity of being heard. The rectification may also lead to reducing the tax liability in which case a refund becomes due to the service provider.
Amendment order in respect of rectification of, mistake must be passed in writing by central excise officer.
On the basis of amendment order, if there is reduction in liability of an assessee or increment in refund then central excise officer cannot refuse i.e. CEO shall make refund which is due to assessee. And if there is reverse situation on the basis of amendment that is enhancing the liability or reduction in refund already made then CVEO shall make an order specifying the sum payable by the assessee.