Reference to non-existent section 11AB of the CEA, 1944 in CER, 2002 and CCR, 2004 - Is CBEC not aware?
WE received this mail from a netizen -
“By the Finance Act, 2011, effective from 8th April, 2011, a new section 11AA titled “Interest on delayed payment of duty” has been enacted substituting the earlier sections 11AA and 11AB of the Central Excise Act, 1944. Incidentally, the notifications issued under the earlier sections 11AA and 11AB of the CEA, 1944 continue to remain in existence and for obvious reasons. These notifications are amending Notifications 05/2011-CE(N.T) dated 01.03.2011 and 06/2011-CE(N.T) dated 01.03.2011 prescribing rate of interest at eighteen percent per annum and both of them have come into force on 01.04.2011.
Interestingly, under the new Section 11AA of the CEA, 1944, no notification has been issued till date by the Central Government, thereby giving an impression that the old section 11AA notification continues to govern in the current scenario too – and which certainly is a fallacy.
So also, Rule 8(3) of the Central Excise Rules, 2002 and Rule 14 of the CENVAT Credit Rules, 2004 still owe allegiance to the earlier section 11AB of the CEA, 1944 whereas it should be the new section 11AA of the CEA, 1944.
A small non-tariff notification can do the needful but it appears that the CBEC wants to pay a heavy price for this lapse.
The Board can search for all the Budget suggestions in their backyard but probably feel that the Trade should point these… but why should they? ”