Finance Bill Passed in Lok Sabha - Service Tax Penal Provisions aligned with Central Excise

The amendment has come and wording is made in best of the capacity of CBEC(probably this is why they were awarded in last month). The Hon. PM few days back in legal fraternity meet emphasized on having an institute which can impart the skill of drafting the laws. I would urge Min of HRD and Law both to join hand and setup this kind of institute immediately, also deploy top rankers of first batch in CBEC and CBDT this will help to reduce the litigation at least by 50%. Coming back to the amendment vide notf.12-2015 Cx, all the assess will have to do following exercise if they at all wish to use Cr of E Cess and SHE and avoid litigation:-
1. Segregate and keep separate (as per ER-1-ER-2) the closing balance as on Feb-15.
2. Credit availed after 28th Feb for which Goods received prior.
3. Credit availed after 28th Feb for which service received prior.
4. Credit availed after 28th Feb for which Goods also received after.
5. Credit availed after 28th Feb for which Service also received after.
This need to be done because as per the amendment the credit at sr. no 4 & 5 is eligible for utilization but assess will have to prove the same with supporting during the famous EA2000audit & also audits done by different wings of revenue dept.
Further, this raises some questions:-
1. What happens to E Cess and SHE which is paid under reverse charge but service received before 28th Feb?
2. What happens to reversals of E & SHE credit on account on non payment to service provider and subsequently availed after payment?
3. What happens if some adjustments are made incase of excess service tax payments made during earlier month and it is adjusted or in case of advance payment?
4. What will be imagination(interpretation) as against POT rules against this notf.?
5. If the credit can be availed with in 1 year, why there is barrier for utilization?( can any Babu give the rational?)
The best solution for these problems is perhaps to rescinding this notf immediately and issue fresh notf. but I am sure as per the habit and reputation of CBEC if at all they wake (may be after 6 mths) they will issue amendment. They expect ordinary people to remember all the notf. they have issued, (what a joke?), I would rather say there should be ban on amending the notf. if at all Babus want to make chages in law/notf they should rescind previous notf. and issue fresh because some of the notfs are amended so many times (eg. 214/86, 23/2003 ) that it is practically impossible to even trace the amendments forget about remembering them.
Before parting…
Dear Hon PM, As all the BABUS enjoy “ACCHE DIN”, request you to please extend the “ACCHE DIN to the ordinary people of this country who are working in private industries in taxation fields & also small time Business man who himself is looking into tax matters, such type of amendments are making their life traumatic, and on the other hand Babus enjoy, this is clearly inequality between haves and have not’s. This has become a standard practice by “Babucrates” that to make guffups and then down level Babus will issue you SCN after SCN during Audits.
View expressed here are strictly personal

Peter Costa 04/05/2015