Rates of Interest - What is meaning of 'except as respects things done or omitted to be done before such supersession'?
IN a recent meeting of the Regional Advisory Committee of the Cochin Central Excise Zone, a query was raised:
Notification 13/2016 dated 1.03.2016 supersedes Notification 12/2014 which prescribed different rates of interest from 18% - 30 % from 1.10.2014. The Notification prescribes two different rates of 24% and 15% as the case may be. But the supersession is subject to the condition "except as respects things done or omitted to be done before such supersession".
Please clarify whether the above expression would cover:
1. Show Cause Notice issued but not adjudicated.
2. Show Cause adjudicated but pending filing of appeal
3. Investigation started/Audit completed but no show cause issued.
In case no Departmental Investigation /Enquiry/Audit initiated whether the assessee can adopt 15% interest for the past period also.
On this query, the Commissioner Trivandrum explained to the members that the phrase "Except as respects things done or omitted to be done before such supersession" suggests that there is an existing order and this order is superseded or replaced by new order to such an extent that where the replacing or new order is silent, the prevalent rules and process are to be followed.
It was clarified that in all the situation/cases mentioned in the query, the interest rate applicable would be the rates notified as per the Notifications which were in force during the respective periods. The new Interest rate as specified in NotfnNo.13/2016 takes effect only with effect from the date the Finance Bill, 2016 receives the assent of the President of India and the changes has only prospective effect.
A Member requested the chair to clarify as to why such an expression is given in the Notification, for which, the Chief Commissioner explained that it is a legal requirement for the transition and has only the meaning as explained by the Commissioner. The Commissioner, Trivandrum added that same wording can be seen in the earlier Notifications also.
QED!