CENVAT Credit Rules Amended to bring in service provider under Deterrent Action - Comma Missing Mishap
GOVERNMENT has amended Rule 12 AAA of the CENVAT Credit Rules as follows:
In the CENVAT Credit Rules, 2004, in rule 12AAA, after the words "first stage and second stage dealer", the words "provider of taxable service" shall be inserted.
This Rule 12 AAA before the amendment reads as:
12AAA: Power to impose restrictions in certain types of cases.- Notwithstanding anything contained in these rules, where the Central Government, having regard to the extent of misuse of CENVAT credit, nature and type of such misuse and such other factors as may be relevant, is of the opinion that in order to prevent the misuse of the provisions of CENVAT credit as specified in these rules, it is necessary in the public interest to provide for certain measures including restrictions on a manufacturer, first stage and second stage dealer or an exporter, may by notification in the Official Gazette, specify the nature of restrictions including restrictions on utilization of CENVAT credit and suspension of registration in case of a dealer and type of facilities to be withdrawn and procedure for issue of such order by the Chief Commissioner of Central Excise.
Now after the amendment, this rule will read as:
Notwithstanding anything contained in these rules, where the Central Government, having regard to the extent of misuse of CENVAT credit, nature and type of such misuse and such other factors as may be relevant, is of the opinion that in order to prevent the misuse of the provisions of CENVAT credit as specified in these rules, it is necessary in the public interest to provide for certain measures including restrictions on a manufacturer, first stage and second stage dealer provider of taxable service or an exporter, may by notification in the Official Gazette, specify the nature of restrictions including restrictions on utilization of CENVAT credit and suspension of registration in case of a dealer and type of facilities to be withdrawn and procedure for issue of such order by the Chief Commissioner of Central Excise.
There should have been a comma between the phrases first stage and second stage dealer and provider of taxable service, in the absence of which the phrase becomes meaningless as first stage and second stage dealer provider of taxable service.
Now neither the first stage and second stage dealer nor the provider of taxable service can be brought under the ambit of this rule. In trying to add something, you lost something. Comma is very important Sir Jee.
Notification No. , Dated: August 25, 2014