Finance Bill not passed;may be passed today - certain cosmetic changes likely; Pre-deposit of duty or penalty or both to be clarified; Stay provision to be removed; Interest from Day one for pre-deposit
THE Finance Bill 2014 could not be passed in the Lok Sabha yesterday as the debate remained inconclusive. Most probably, the Finance Minister will reply and the Bill will be passed today.
It is understood that the Government is proposing certain amendments to clarify some doubts raised regarding the changes proposed in the Customs, Excise and Income Tax Laws in the Budget.
Pre-deposit of duty or penalty or both: In DDT 2394 11.07.2014, it was commented, "As per the amendment, pre-deposit is a percentage of the duty or penalty or both. Who will decide whether duty or penalty or both have to be paid? Does the appellant have a choice?" We understand that this is being clarified that when duty and penalty are in dispute, pre-deposit will be on duty only and when penalty alone is in dispute, it will be on penalty alone.We understand that the clarification goes thus - that where duty or duty and penalty are in dispute, the pre-deposit would be of the prescribed percentage of duty and where only penalty is in dispute, the pre-deposit would be of the prescribed percentage of penalty. Some relief indeed.
Interest on refund of Pre-deposit from Day One - at rate to be notified: At present if pre-deposit is to be refunded due to an appellate order, interest is paid from a date after three months from the receipt of the appellate order. It seems this is to be amended for payment of interest from the date of deposit, but this will apply to only deposits made after the enactment of the Finance Bill. Interest will be at a rate (between 5and 36 percent) to be notified by the Government.But what happens if the operation of the order of the appellate authority is stayed by a superior court or tribunal - no answers!
No need of Stay applications? Now that pre-deposit is made mandatory, is there no requirement of filing applications for stay of the recovery of the balance amounts? This is a doubt nagging many assessees and consultants. Though no clarification is offered, the provisions for payment of a fee of Rs. 500 for Stay applications in Customs and Central Excise are being deleted, which would indirectly mean that stay applications are no more required.
Let us hope in the course of his reply, the FM would announce some more reliefs.