Ease or Dis-Ease of Doing Business in India?

Previous Normal period of limitation of One and half years and one year in Service Tax and Central Excise has been extended to two and half years and 2 years respectively. By this amendment, the Govt has given more time to Babus (to sleep little more) to issue notice when there is no fraud or suppression, which would surely lead to late rising if they find any reasons to issue demand notice. Even presently, SCNs are practically issued in the last month and in some cases, even on last date just before the demand gets hit by time bar. Moreover, in case where the SCN could not be raised within normal limitation, it is always the tendency to invoke extended period of limitation and just for the sake of raising the SCN by invoking extended period, a vague allegation is made that there was a fraud or suppression. Further, they justify by saying that the assessee is working in a self assessment regime where the onus lies on him to pay correct duty (thereby meaning that Babus are meant to sit, relax and enjoy automatic flow of revenue) and since the assessee has failed in doing so, they are liable for such contravention and hence extended period of limitation is invokable. This is a patent stand of deptt for last 25 yrs.

RAJEEV AGARWAL 01/03/2016