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Corporate News *   Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Sliver   *   Imposition of anti dumping duty "Ammonium Nitrate"originating in exported from Russia, Indonesia, Georgia and Iran *   Exemption to a person making inter-State taxable supplies of handicraft goods from the requirement to obtain registration granted  *   Exemption from registration to job-workers making inter-State supply of services to a registered person granted *  The notification amends the rates of compensation cess on various motor vehicles *   Clarifcation for classification and GST rate on lottery *   Directions to Bank regarding export to Algeria *   Implementation of Notification No. 19 dated 5.8.2017 *   Enlistment of Agricultural and Processed Food Products Export Development Authority (APEDA) under Appendix 2C & 2E *   Extension in last date of  Export of preferential quota sugar to USA under TRQ quota *   Correction / Amendments in Table 2 of Appendix 3B Foreign Trade Policy 2015-20 *   Proformae for submission of applications for export of Red sanders wood and import of sandalwood notified *   Amendment in import policy of raw sugar *   Revision in Policy condition no 2 to Chapter 95 of ITC(HS), 2017 *   Clarification on difficulties related to recent amendments in Customs Act, 1962. *   Implementation of electronic sealing for containers by exporters *   Rate of exchange of conversion of the foreign currency with effect from 08.09. 2017 {See notification no 84/2017-Cus (NT),dt. 07.09.2017 in What’s new} *   Jurisdiction of customs officers for the purpose of audit defined {See notification no 85/2017-Cus (NT),dt. 07.09.2017 in What’s new} *   GST Workshop for babus held *   GST cess hike on luxury cars approved by cabinet *   Punjab Govt unable to pay salary to its employees *   Narendra Modi Proposes GST Registration for small traders. *   Govt restricts imports of gold, silver from South Korea  *   West Bengal Sweetmeat Makers go on Hunger-strike Against GST *   Appointment of officers as the Principal Chief Commissioners of Customs or Chief Commissioners of Customs and allotted their jurisdiction *   Amendment in Para 4.32(i) of chapter 4 and in para 6.01 (a) of chapter 6 of the Foreign Trade Policy 2015-20 *   Supply of essential commodities to the Republic of Maldives during 2017-18 *   Rate of exchange of conversion of the foreign currency with effect from 18th August, 2017 notified  *   Classes of persons who shall pay customs duty electronically notified *   Change in AIRs of Duty Drawback on Gold Jewellery, Silver Jewellery and Silver Articles 
Subject News *   Extension in the last date for filing the return in FORM GSTR-3B for the months of August to December, 2017 *   Seventh amendment to the CGST Rules, 2017 *   Notifying section 51 of the CGST Act, 2017 for TDS *   Granting exemption from registration to a casual taxable person making taxable supplies of handicraft goods. *   Extension in the time limit for filing of GSTR-6. *   Extension in the time limit for filing of GSTR-1, GSTR-2 and GSTR-3. *   Amendment in certain customs notifications in pursuance to change made in Budget 2017-18. *   Exemptions to goods imported for organising FIFA under 17, world cup, 2017 *   Seeks to extend due dates for furnishing details/Returns for the months of July, 2017 and August, 2017. *   System based reconciliation of information furnished in FORM GSTR-1 and FORM GSTR-2 with FORM GSTR-3B *   Single point service Contact@DGFT eastablished. *   Imposition of CVD on imports of Certain Hot Rolled and Cold Rolled Stainless Steel Flat Products *   Reduction of BCD on raw sugar upto a quantity of 3 lakh MT {See notification no 74/2017-Cus,dt. 07-09-2017in What’s new} *  Seeks to continue anti-dumping inforce concerning imports of "Metronidazole" originating in exported from China PR *  seeks to levy definitive anti-dumping duty, on Castings for Wind Operated Electricity Generators *  seeks to impose anti-dumping duty on "Styrene Butadiene Rubber (SBR) *   What is Form GST TRAN-1 and when to File it *   How To Revise Invoice In GST *   Advertising space in print media to attract 5% GST *  Seeks to impose anti-dumping duty on " TexturedToughened (Tempered) Glass ", originating in or exported from China PR *  Seeks to amend notification No. 49/2012 - Customs (ADD) dated the 26th November,2012 to modify the amount of anti-dumping duty on import of Caustic Soda originating in or exported from Iran, Saudi Arabia and USA. *  Seeks to impose anti-dumping duty on the imports of "Sodium Nitrite" originating in or exported from China PR. *  Notification No.82/2017-Customs (N.T.) dated 24th August, 2017 *  Amendment in import policy of Beans of the species Vigna mungo (L.) Hepper or Vigna radiate (L.) Wilczek under Chapter 7 of the ITC (HS) 2017, Schedule â I (Import Policy) *  Amendment in Para 3.24(j) of Chapter-3 of FTP 2015-20 *  Amendment in Para 2.07 of Foreign Trade Policy 2015-2020. *  Amendment in import policy of gold and silver under Chapter 71 of the ITC(HS) 2017, Schedule -I (I) *   Seeks to modify the amount of anti-dumping duty on import of Caustic Soda originating in or exported from Iran, Saudi Arabia and USA *   Seeks to impose anti-dumping duty on the imports of "Sodium Nitrite" originating in or exported from China PR *   Amendment in the CGST Rules, 2017   

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Publish Date: 05 Mar, 2016
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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. 

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PRADEEP JAIN, F.C.A.

Head Office : -

Address :
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Phone No. :
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E-mail :pradeep@capradeepjain.com