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Corporate News *  GST: E-way bill implementation deferred due to glitches *  Budget 2018: No fiscal derailment, but a lot rides on GST; expect caution from RBI *   5 times number of airtports in india *   Govt will formulate a comprehensive gold policy to develop gold as an asset class *   Government to evolve to asign a unique id to every individual enterprise. *   1.48 lakh crore for rail budget. *   7148 Crore to be sanctioned to textile sector. *   3700 corore for SME industry *  16000 crore for free electricity connection *   Government ignored warnings over GST rollout: sources *  GSTR 3B questionaire introduced- To be filled before filing return *  Advisory mail  to all the taxpayers received from GSTN *   Advisory group on GST submits report, suggests changes *   GST lifted oil demand on higher vehicle sales, says report *   Moody’s gives thumbs up to GST, demonetisation  *   Pass on rate cut benefits immediately, companies tell traders *   Focus will now be on simplifying forms, IT processes under GST: Sushil Modi *  Tax rates lowered on consumer goods,only luxury goods taxed @ 28% *   Businesses can revise GST transition claim form now *  Multiplex owners in UP demand clarity on refund as tax exemptions go away after GST *   GST compliance: A case of much ado about nothing *  PM hints more relief for traders & businesses to ease GST compliance burden *  Infosys deploys more people in states to ease GSTN load *   Further reforms are needed for the GST to succeed *   GST impact! Massive stock clearance discounts on apparels, gadgets likely in December *  Kerala HC releases Detained Goods since State has No Power to make Rules to regulate Inter-State movement of Goods under GST *  Infosys is to blame for GST Network glitches, say government officials *   Publishers versus authors: Who will pay GST on royalty? *   कपड़ा निर्यातकों ने कहा, जीएसटी के कारण भारत से शिपमेंट में आ सकती है भारी कमी *   Tax professionals protest over GST returns filing in Gujarat
Subject News *   Don't charge GST from affordable housing buyers: Government to builders *   RBI policy: GST-hit small business get more time, money *   GST’s e-way bill set for a month-end rollout after tech glitches pushed it off-track on Feb 1 *  GST regime not user-friendly, says Bombay High Court *   Increase in  custom duty on mobile phones from 15% to 20%.  *   Custom duty on raw cashew imported shall be 2.5% *   Proposed to abolish Education Cess and Secondary And Higher Education Cess on imported goods. *   Social Welfare Surcharge at the rate 10% on aggregate duties of customs. *   The name of Central Board of Excise and Customs changed to Central Board of Indirect Taxes and Customs. *   Proposal to extend the reduction of  corporate tax 25% to companies having turnover upto 250 Crores. *   Department of commerece will develop national logistics portal. *   online loan sanction schmed linked with GSTn will be launched *   Railway university in Varoda 24 new medical colleges. *   bamboo is taken out of category of tree and 1200 crore for bamboo mission *   1400 crore for food processing *   minimum support price 150% of cost of production for agriculture *   2699 crore for irrigation to have water in each village. *   2 crore more toilet construction target *   11 lakh crore for agriculture loan *   2 crore more toilet construction target. *   1400 crore for development of organic farming *   farmers will get 50% extra of cost of their product as support price *   8 crore free gas connection in Ujawla yojana” *   farmers will get 50% extra of cost of their product as support price *   The report and recommendations submitted by the Committee on Handicrafts were accepted. *   Allows ITC of input services in the same line of business at the GST rate of 5% in case of tour operator service. *   GST rate for tamarind kernel powder reduced to 5% *    Exempt fumigation Services in a warehouse of agricultural Produce. *   To extend concesssional rate of gst on houses . *   Exemption limit enhanced from Rs 5000 to 7500 for services by resident welfare association  


Publish Date: 05 Mar, 2016
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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. 

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