Chartered Accountant
Bookmark and Share
click here to subscribe our newsletter
 
 
Corporate News *   Government extends deadline for GST returns filing for taxpayers affected by cyclones *  GST on banks' 'free services' may be passed on to customers *   Govt staring at a shortfall of Rs 500 bn to Rs 1 trn in GST collection? *  Ministry seeks to bring aviation fuel under GST. *  Centre, states apportion Rs 33,000 cr IGST in November. *  GST: Government Extends Deadline For Filing TDS Returns For Oct.-Dec. To January 2019 *  Indirect Tax Evasion During April-October Stands At Rs 29,088 Crore *   Tax Collection Growing By 15-20 Per Cent Every Year: Arun Jaitley *   GST Compensation Paid To States Declines To Rs 11,900 Crore in August-September *  GST Practitioners Enrollment Exam In December *  GST can’t be Deducted from Salary of Employees sponsored by UPNL: Uttarakhand HC *  Chennai businessman held for Rs 61 crore GST evasion . *  Govt issues Advisory to UIN Entities claiming GST Refunds *  GST paid under a Wrong Head by Mistake can be Transferred to the Right Head: Kerala HC *  CBIC clarifies Scope of Principal and Agent Relationship *  Tea Board of India liable to collect TCS from Tea producers and Auctioneers: CBIC *  Rs 82,775 Cr to Exporters Cleared, Rs 5,400 Cr Pending as on Oct 31 *  Kerala HC orders to take Photographs of Goods since Issue was Misclassification *  Changes in E-way Bill from 16th November 2018 *  Over 2 lakh assessees who migrated from VAT regime opt out of GST net *  GST Practitioners Enrollment Exam In December *   Bombay HC asks Petitioners seeking amendment in GST TRAN 1 to make representation before CBIC; directs CBIC to address within 12 weeks *   Congress will bring single slab GST: Rahul Gandhi *   Centre, states apportion Rs 32,000 crore IGST in October *   GST payers to be divided into four categories for targeted approach *   Centre contemplating bringing petrol, diesel under GST *    Event Management Support Services provided in Goa to a Registered Person in Maharashtra subject to Integrated GST: AAR   *   Haryana to form GST Appellate Tribunal *  Unprecedented tax reforms undertaken by Indian Customs for enhancing easy of doing business. *  Companies rush to match input tax credit with vendor returns
Subject News *   India needs a GST like federal structure for healthcare and education: Finance Minister Arun Jaitely *    Air conditioners, TVs may get cheaper as GST Council likely to slash tax rate to 18%       *  No GST on flats after completion certificate issued *  GST Council may look to rationalise 28% slab; taxes on cement may be cut  *  Lions clubs not required to register under GST: AAR *  GST Refund in case of Exports and Refund of Input Tax Credit. *  GST Advance Ruling System will take Time to Resolve: CBIC *  Enforcement Directorate files Complaint against Businessman in VAT Refund Scam. *  7 lottery centres raided in central Mumbai, 11 held for 'GST Evasion' *  GST Evasion: Raid in 7 Lottery Centres, 11 Arrested. *   Companies vanishing act on GST invites taxmen *   GST returns witness substantial increase in J&K: Tax dept *   Banks to impose GST on ATM usage, issue of cheque books, additional credit cards *   Realtors want different GST rates based on location of projects *  Keeping it simple: Reconciliation of GST data in 5 steps. *  India Inc seeks more time for filing GST annual returns, audit reports. *  Simplified GST return forms to be rolled out from April 1: Revenue Secretary *  CAIT urges FM Arun Jaitley to extend last date for GST filing to March 2019 . *  Air conditioners, TVs may get cheaper as GST Council likely to slash tax rate to 18% *  Key points for first ever filing of GST Annual returns. *  Government extends GST annual return filing date to March 31, 2019 *  Furnishing GST annual return extend deadline by 3 months: ICAI to CBIC *  Credit to MSEs up 5 times to Rs 1.23 lakh crore post GST: SBI study *  Need GST Council like federal institution in healthcare, farm sector: Arun Jaitley. *   How GST will cruise ahead with new-age tech ? *  GST a ‘monumental reform’: finance minister Arun Jaitley *  AB Pandey takes over as revenue secy; to focus on enhanced tax compliance via technology integration.   *  GST revenue mop up at ₹97,637 cr in Nov *   Process of getting ATF under GST bracket underway, says Jayant Sinha *   Arun Jaitley to present interim budget in February, may include tax measures  

Comments

Publish Date: 05 Mar, 2016
Print   |    |  Comment

LIMITATION FOR ISSUING SCN UNDER SECTION 73 ENHANCED

LIMITATION FOR ISSUING SCN UNDER SECTION 73 ENHANCED

Or
PROS AND CONS OF AMENDED SECTION 73

 

An article by:-
CA PRADEEP JAIN &
CA NEETU SUKHWANI

 
It was proposed in the Central Excise Tariff Conference that the time limit for issuing show cause notice under normal period of limitation should be increased and it appears that the suggestion has been considered by the government in this Budget. In this budget, the government has amended section 73 of the Finance Act wherein the time limit for issuing show cause notice under normal period of limitation has been increased from the present ‘eighteen months’ to ‘thirty months’ from the relevant date.
 
The effect of increase in time limit is favourable or adverse decision of the government from the point of view of assesses will be known in the time to come. However, there are both pros and cons of the amendment made in section 73 of the Finance Act. The favourable and unfavourable consequences of the amendment are discussed in the succeeding paragraphs.
 
The advantage of enhancing the time limit to issue normal period of limitation may be viewed as beneficial in the sense that the probability of assessees availing the benefit of ‘no penalty’ by concluding the proceedings under section 76 or proviso to section 11AC (1)(a) may increase. This is for the reason that the show cause notice issued within normal period of limitation generally would not allege fraud, suppression of facts or wilful misstatement with intention to evade payment of duty. Consequently, one may believe that the benefit of waiver from penalties may be extended on comparatively large scale. However, it is also not hidden that the penalty provisions of section 78 or section 11AC (1)(c) are always invoked whether there is allegation of fraud, collusion or wilful misstatement or suppression of facts or not.
 
One may also contend that increasing time limit for issuing show cause notice under normal period of limitation may be perceived as promoting lethargic attitude of the revenue authorities. It is commonly observed that the show cause notices pertaining to audit objections are also issued after 3-4 years by invoking extended period of limitation. Consequently, since the time limit to issue show cause notice under normal period of limitation is increased to 30 months, the policy of delay in issuance of show cause notices would continue even more. Moreover, the thin gap between the normal period of limitation and the extended period of limitation would make the provision of normal period of limitation redundant as 99%, the revenue authorities will have tendency to invoke larger period of limitation.
 
With the government planning to introduce unified taxation reform GST in the coming year, the provisions regarding time limit to issue show cause notice under normal period of limitation should be kept at minimum like one year as all the data pertaining to tax credit, payments, returns will be electronically filed and accordingly, it would be expected by the government that scrutiny and verification procedures are carried on speedily. Providing enhanced time limit to issue show cause notice would encourage unnecessary delays in verification and assessment mechanism. 

Department News


Query

 
PRADEEP JAIN, F.C.A.

Head Office : -

Address :
"SUGYAN", H - 29, SHASTRI NAGAR, JODHPUR (RAJ.) - 342003

Phone No. :
0291 - 2439496, 0291 - 3258496

Mobile No. :
09314722236

Fax No. :0291 - 2439496


Branch Office : -

Address:
1008, 10th FLOOR, SUKH SAGAR COMPLEX,
NEAR FORTUNE LANDMARK HOTEL, USMANPURA,
ASHRAM ROAD, AHMEDABAD-380013

Phone No. :
079-32999496, 27560043

Mobile No. :
093777659496, 09377649496

E-mail :pradeep@capradeepjain.com