New services to be effective from May 1, 2011?
CENTRAL Government has issued a notification in exercise of the powers conferred by clauses (A) and (B) of section 71 of the Finance Act appointing May 1, 2011 as the date on which the provisions of the said Act shall come into force.
Unfortunately, the Government has not realized that after enactment of Finance Bill 2011 into Finance Act, 2011 on April 8, 2011, there is a renumbering of the sections. In the process, section 71 of Finance Bill 2011 was renumbered as section 74 and this Notification should have been issued invoking clauses (A) and (B) of section 74 of the Finance Act, 2011 and not section 71 as mentioned therein.
Section 71 of the Finance Act deals with amendment of Rule 3 of the CENVAT Credit Rules!
Now Government has to come out with an amendment or a corrigendum to set right this numbering fiasco that crept into this life giving Notification for new services and other amending provisions of Finance Act, 1994. Otherwise, the new services cannot really come into force on May, 1, 2011.
Notification No. , Dated: April 25, 2011