TIOL-DDT 485 · the untouched capture
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<p align="justify"><b><font color="#663399" size="3" face="Verdana, Arial, Helvetica, sans-serif">TIOL-DDT
485</font></b><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><br>
07 11 2006<br>
Tuesday</b></font></p>
<p align=center><font color="#006600" size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>When
the last date for payment of duty is a holiday?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The
5<sup>th</sup> of November 2006, the last date for payment of monthly excise
duty and Service Tax, was a holiday, a Sunday. Can the duty/tax be paid on Monday?
No doubt it can be paid but <strong>DDT</strong> understands that Central Excise
officers are demanding and collecting interest for the delayed payment, especially
in respect of Service Tax. Similarly the last date for filing return last month
was a holiday. Regarding return, there is really no problem as excise officers
would oblige by accepting a back dated return, but for duty payment there can
be no such concession. </font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>Is
payment made on the next working day delayed?</strong></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Once upon
a time, not so long ago, it so happened that 31<sup>st</sup> March happened
to be a holiday. This is a day when you see officers going crazy about targets
and what happens if that fell on a holiday? Can the tax be paid the next day?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Board had
in Circular No. 629/2002, dated 19-3-2002 dealt with this issue and clarified
that </font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The last day of this month/Financial Year i.e. 31-3-2002 happens to fall on
a Sunday, on which day the Banks are normally closed. In terms of rule 8 of
the Central Excise Rules, 2002 an assessee availing facility of fortnightly
payment of duty has to deposit the duty for the second fortnight of March
by 31st day of the month. Further, as per Explanation to the rule, duty liability
is deemed to be discharged only when the amount payable is credited to the
account of the Government by the specified date. Hence, duty is to be paid
by 31-3-2002 and not on the last date of the month. Secondly, duty should
be credit to the Government account by 31-3-2002. Thus, the assessees should
ensure the duty is paid by 31-3-2002 otherwise the clearances would be treated
as non-duty paid. . Hence, this year assessees should calculate their duty
liability up to 31-3-2002 and credit it to the Government account by 31-3-2002.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">But was
the Board right? They made a U turn in 2003. By Circular No. 63/2003 dated 14-10-2003,
Board clarified,</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++Doubts
have arisen with regard to the last date of payment of Service Tax and for
filing the Service Tax return in case the 25th of the month in which the Service
Tax is to be paid or return filed happens to be public holiday.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong>++
</strong>In case of genuine hardship on account of public <font color="#663399">holiday
on 25th of the month in which a service provider has to pay the service tax
or file the returns, he may pay the service tax in Government account on
next working day immediately following the holiday.</font> Same thing applies with regard to the
filing of return.</span></font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Now which
of these clarifications is to be followed? Is it that the principle of next
day payment is normally applicable except in March?</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us see
some statutes:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><strong><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=uask/general_clauses.htm">GENERAL
CLAUSES ACT, 1897:</a> </strong></font></p>
<p align="justify"><strong><font size="2" face="Verdana, Arial, Helvetica, sans-serif">10.
Computation of time</font></strong></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(1) Where,
by any 12[Central Act ] or Regulation made after the commencement of this Act,
any act or proceeding is directed or allowed to be done or taken in any Court
or office on a certain day or within a prescribed period, then, if the Court
or office is closed on that day or the last day of the prescribed period, the
act or proceedings shall be considered as done or taken in due time if it is
done or taken on the next day afterwards on which the Court or office is open:</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">PROVIDED
that nothing in this section shall apply to any act or proceeding to which the
22[Indian Limitation Act, 1877 (15 of 1877)], applies.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">(2) This
section applies also to all Central Acts or Regulations made on or after the
fourteenth day of January, 1887.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><a href="http://www.taxindiaonline.com/RC2/inside2.php3?filename=uask/limitation_act.htm">LIMITATION
ACT, 1963</a></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>4. Expiry
of prescribed period when court is closed</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Where the
prescribed period for any suit, appeal or application expires on a day when
the court is closed, the suit, appeal or application may be instituted, preferred
or made on the date when the court reopens.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Explanation:
A court shall be deemed to be closed on any day within the meaning of this section
if during any part of its normal working hours it remains closed on that day.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>NEGOTIABLE
INSTRUMENTS ACT, 1881</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>25. When
day of maturity is a holiday</b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">When the
day on which a promissory note or bill of exchange is at maturity is a public
holiday, the instrument shall be deemed to be due on the next preceding business
day.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><i><strong>Explanation</strong></i><strong>:</strong>
The expression "Public Holiday" includes Sundays and any other day
declared by the Central Government, by notification in the Official Gazette,
to be a public holiday.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Let us also
see some judicial decisions:-</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
<b>Meck Lubricants & Petrochemicals Pvt Ltd - </b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2004/2004-TIOL-436-CESTAT-MUM.htm"><font size="1">2004-TIOL-436-CESTAT-MUM</font></a></u><b><u>
</u></b>, the Tribunal held that <i>the last day of the period of limitation
of six months under Section 11B of the Central Excise Act being a holiday, the
refund claim filed under the said Section 11B on the next day would be deemed
to have been filed within time.</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In
<b>Sahuwala Cylinders Limited </b><u><a href="http://www.taxindiaonline.com/RC2/subCatDesc.php3?subCatDisp_Id=52&filename=legal/cestat/2004/2004-TIOL-594-CESTAT-BANG.htm"><font size="1">2004-TIOL-594-CESTAT-BANG</font></a></u><b><u>,
</u></b>the tribunal held that <i>when the last date for filing an appeal falls
on a holiday, the same can be filed on the next working day.</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">In <b>Indian
Seamless Steel And Alloys Ltd</b>, the Bombay High Court held that <i>that time
prescribed by statute for doing any act if expires on a holiday should be treated
to have been done within period prescribed if done on the next working day.
Consequently, payment of excise duty made by the petitioners on the next working
day i.e. on Monday, the 21st January, 2002 has to be treated to have been made
on due date i.e. within the period prescribed as 20th January, 2002 was a Sunday
when office of the Bank of Maharashtra was closed and payment could not have
been made on that day.</i></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The Court
also observed, It is also a well settled principle of law that the law does
not compel a man to do that which he cannot possibly do and the said principle
is well expressed in legal maxim <i>“lex non cogit ad impossibilia”</i> which
is squarely attracted to the facts and circumstances of the present case.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>So it
is clear that duty/tax can be paid and returns and appeals can be filed on the
next working day if the due date happens to be a holiday.</b></font></p>
<p align=center><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b><font color="#006600">Tax
Return Preparers Scheme – CBDT’s new iniative</font></b></font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">Want help
in filing your tax return? For just Rs. 250/- you will get assistance from a
TRP to be appointed by CBDT. About 5000 TRPs are to be trained in 80 cities
by NIIT with the objectives of</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Reducing the cost of compliance for small and marginal taxpayers and to encourage
them to comply with tax laws</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Providing self-employment opportunities to unemployed or partially employed
graduates all over the country.</font></p>
</blockquote>
<p align="justify"></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">The salient
features of the scheme are</font></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
Assistance in filing tax returns free of cost would be extended to self employed
and small businessmen, salaried employees, senior citizens, and women having
total income up to a specified amount.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The minimum qualification for undergoing training as Tax Return Preparers
would be a graduation degree in Commerce, Law, Economics,Mathematics, Statistics,
and Management.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++9
days training to TRPs with the help of a training partner NIIT. Cost to be
borne by government.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
A “Tax return Preparers Course Completion Certificate” and an Identity Card
bearing a unique identification number would be issued at the end of each
training programme.</font></p>
</blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif"><b>Tax outsourced
- Commission for tax collection: </b></font></p>
<p align="justify"></p>
<blockquote>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
The Tax Return Preparers would be reimbursed 3% of the tax collected for the
first year’s return of a new tax payer, 2% for the second year and 1% for
the third year, on the returns prepared by tax returns preparers.</font></p>
<p align="justify"><font size="2" face="Verdana, Arial, Helvetica, sans-serif">++
For preparing returns of existing tax payers, TRPs will collect from the taxpayer
Rs. 250 for return for every assessment year.</font></p>
</blockquote>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Until
tomorrow with more DDT </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Have
a nice day. </font></p>
<p align="justify"><font color="#FF6666" size="2" face="Verdana, Arial, Helvetica, sans-serif">Mail
your comments to</font> <font size="2" face="Verdana, Arial, Helvetica, sans-serif"><a href="mailto:vijaywrite@taxindiaonline.com">vijaywrite@taxindiaonline.com</a></span></font></p>
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