TIOL-DDT 1630 · Wednesday, 15 June 2011 · story 1 of 3

IRS v IRS - Transport of Goods by Rail - Exemption Extended - Even without Didi

MAMTA Didi may not be the Railway Minister, but the Indian Revenue Service has to concede to the Indian Railways. The IRS in North Block tried to levy Service Tax on goods transport by Rail, but the IRS in Rail Bhavan successfully blocked it. After several postponements, the tax was to be effective from 1 st July 2011. Now it is further extended.

The following Notifications are amended:

1. Notification No , dated the 27th February 2010: Rescinds Notification No. 33/2009-S.T dated 01.09.2009 [which actually exempts transport of goods by rail and if this exemption is withdrawn, the service becomes taxable]. This notification was to be effective from 01.04.2010 and then extended to 01.07.2010, further extended to 01.01.2011, then to 01.04.2011 and then to 01.07.2011 and now further extended to 01.01.2012.

- Notification No. , Dated : June 14, 2011

2. Notification No , dated the 27th February 2010: exempts certain goods like Postal Mail Bags, from Service Tax. This notification was originally effective from 01.04.2010, then extended to 01.07.2010, 01.01.2011, 01.04.2011 and then to 01.07.2011 and now further extended to 01.01.2012.

- Notification No. , Dated : June 14, 2011

3. Notification No , dated the 27th February 2010: provides abatement to transport of goods by rail. This notification was effective from 01.04.2010 and similar amendments were made and in the previous round, it was made effective from 1 st July 2011. Now it is effective from 01.01.2012

- Notification No. , Dated : June 14, 2011

Why can't they simply say that the notifications will come into force from a date to be notified by the Government? Thousands of copies of these notifications will be printed and circulated on precious paper. Generations to come will scarcely believe that a Revenue Department in India was primarily responsible for destroying the forests of India and those generations will never forgive you for such vandalising waste in exercise of the powers wasted in you.

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