Instruction on amended penalty provisions-other side of coin!

The clarification has been well analysed by the authors.Strangely the clarification on the provisions of 73.3 where the tax is ascertained by a CEx officer mentioned therein is not clarified.The deletion of 73.4A from 14/5/2015 and changes in penal provisions make this clause crucial.The specific illustrative examples where the CEx officer ascertain the tax to fall under 73(3)must be issued by CBEC.In a case audit team visit and tell that the tax is to be paid on some omitted value,or service etc OR where details are called for from Range dvn Hqrs and the assessee readily furnish same and on being pointed out readily pay the tax OR on scrutiny of ST3 is short payment is pointed out etc this penal clause of 76 only would be applicable.Moreover as per Expln 2 under 73(3),already paid tax with interest before issue of SCN has to be excluded for imposing penalty.Some more clarity is urgently called for in these instances.Now in all cases the 15% penalty is being mandatorily demanded orally by audit range etc.if they point out the omission.This can never be the IDEAL situation.

Unnikrishnan V 28/09/2015