Introduction
In the context of the Service Tax regime in India, the term ‘assessee’ held legal and operational significance. It identified the person or entity responsible for paying, collecting, or complying with Service Tax regulations under the Finance Act, 1994. The definition of assessee helped determine the scope of tax liability, registration, return filing, and enforcement actions by tax authorities. Understanding this term was essential for interpreting obligations under Service Tax law and for ensuring compliance with applicable rules.

Legal Definition
As per Section 65(7) of the Finance Act, 1994, an ‘assessee’ means any person who:

• Is liable to pay Service Tax under the provisions of the Act
  
• Is required to take registration under the Act or rules made thereunder
  
• Is from whom any amount of Service Tax or any other sum of money is recoverable
  
• Is the recipient of a service in cases where Service Tax is payable under reverse charge mechanism
  

This broad definition covered not just service providers, but also recipients and intermediaries in certain notified cases.

Primary Assessee
The most common form of assessee was a service provider who offered taxable services and was required to:

• Obtain registration
  
• Collect and pay Service Tax
  
• File half-yearly ST-3 returns
  
• Maintain records of transactions
  

These responsibilities made the service provider the principal assessee in the majority of cases.

Assessee under Reverse Charge Mechanism
In specified services, such as import of services, legal consultancy, or goods transport, the recipient of service became the assessee under the reverse charge mechanism (RCM). The recipient was legally obligated to pay Service Tax directly to the government and comply with all related formalities.

Input Service Distributors (ISD)
Entities that received input services and distributed the CENVAT credit to different units were also considered assessees. These were known as Input Service Distributors, and they required separate registration and compliance under Service Tax law.

Temporary or Voluntary Assessee
Individuals or businesses with taxable turnover below the exemption limit (₹10 lakhs) could still opt for voluntary registration. Once registered, they were treated as assessees and had to comply with all provisions of the law, even if not mandatorily liable to pay tax.

Assessee in Case of Penalty or Recovery
The term assessee also included any person from whom:

• Service Tax was recoverable
  
• Interest or penalty was due
  
• Documents or records were demanded during inquiry or audit
  This extended the scope of the term to include defaulters, non-filers, and even entities under scrutiny.
  

Assessee Code and ST-2 Certificate
Each assessee was allotted a unique 15-digit Service Tax registration number (also called assessee code) based on their PAN. This was reflected in the ST-2 Certificate, which legally identified the assessee for compliance, communication, and verification purposes.

Role in Compliance and Audit
An assessee was responsible for maintaining proper books of accounts, submitting returns, responding to notices, and cooperating during audits. Non-compliance by the assessee attracted penalties, interest, and adjudication under relevant provisions of the Act.

Conclusion
The term ‘assessee’ under Service Tax was a comprehensive concept encompassing service providers, recipients under reverse charge, and other liable entities. It defined the scope of responsibility and accountability under the law, forming the foundation of the Service Tax compliance framework. This definition and its implications continued to shape taxpayer responsibilities in the GST regime that followed.

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