The confirm, what may come, syndrome!

Some times it seems like the old jamindari system of the britishers. You give me a targeted amount and rest is yours. I do not care how and what you do to collect my share and your own share?

First impractical laws - like reverse charge - that too partial - then linked to the payment and point of taxation etc, then cenvat credit rules regarding eligibility, time limit etc.

Second - mechanical audits - which create un-reasonable paras - why your service provider has paid tax on this service which is exempted? how you can take credit of duty paid by a supplier under wrong chapter heading etc?

Third - SCN machine - with scan regard to the existing settled questions

Forth - Adjudication - what? these are revenue matters and all demands must be confirmed to protect the revenue

Fifth - pay the mandatory pre-deposit now and if you are not fortunate enough or do not have money to spent on lawyers fees - then the entire demand with penalty, interest etc

Sixth - come what may - if you loose - you will appeal - if department looses - it will appeal - or in some cases - both will appeal and you have to take care of both the appeals.

Litigation galore - this is our policy - till political class does not go through the rules, acts and the court judgements and ensure that the due care is taken in drafting.

May be LOKADALAT could be a way out on the small matters like wjether this service is eligible or not and many other simple questions.

Arbind Aggarwal

Arbind Aggarwal 18/02/2015