Confusing, Complicated and Controversial Notifications - Storm in Teacup blows over - Really?

By Vijay Kumar

TRYING to deny exemption to imported goods, the Board ended up denying the benefit to domestic manufacturers and hastily amended the notifications and issued a clarification that the domestically manufactured goods covered under these notifications / entries continue to be exempt from excise duty or subject to concessional rate of excise duty, as the case may be as they were prior to 17th July, 2015.

But will the notifications deny the benefit to the imported goods? The notifications are so badly drafted that they will only strengthen the claim of the imported goods for exemption.

The Board should immediately withdraw all the six notifications and draft them afresh clearly stating its intention. Otherwise they will not get any revenue, nor will they remove the advantage the importers will have over domestic manufacturers, but they will flood the courts with unwanted litigation.

While on it, Board may be pleased to consider issuing a clarification on that accumulated Education Cess Credit.