JULY 08, 2009
Budget Phobia - Are current Budget Notifications valid?
By A Departmental Nerd
TODAY, the 7th July, I was drooling over the skimpy photographs and cartoons accompanying the budget analysis being carried by the timeless news paper and pink dailies and was wondering as to why Taxindia Online was still being preferred by every netizen. The answer probably lies in the fact that it began carrying its in-house analysis by the time the clock struck a quarter past one and continues to bombard the poor netizen with more of such intaxicating stuff.
Earlier, till TIOL came onto the scene, dissecting the Budget was a rigorous exercise. There was mass hysteria. It was like a life and death situation for the Revenue officers. Are any new commodities brought within the purview of excise duty? Has the slab for SSI exemption increased? Which are the exemption notifications withdrawn? Are there any retrospective legislations? What are the new services which are to be taxed in the coming months? And so on and so forth…
But then, those days even getting hold of the budget notifications and the Finance Bill was a task in itself. One had to grease the palms of the sepoy in the Technical section of the Commissionerate office at least a day before so that he gives the elusive copies of the Budget notifications and Explanatory notes. The paper boy was also reminded that he had to deliver the pink paper which carried the Finance Minister’s speech and the Finance Bill on the day after. Surely, even this carried a premium. I had to also keep handy the magnifying glass. That was because the pink paper which carried the FM’s speech and the Finance Bill employed a font size so small that one would mistake it for black ant’s engaged in a march past. Fortunately, the pre-budget and post budget stock taking exercise, the great money spinner was history – okay make it unfortunately!
The earlier Budget and post budget days, I used to go into hibernation and would ensconce myself safely in the confines of my home without daring to comment anything on the Budget notifications for the obvious reason that it appeared far to complicated to even understand what it was all about.
A week later, when the Budget euphoria had died down, I slowly trudged my way to office only to be admonished by colleagues of having let them down in “analyzing” the Union Budget. I felt like a coward who had ran for his life from the battle field!
This time too, I was more concerned about the monsoons, the crowd on the Bandra Worli sea-link, the impending High Court decision on the 90:10 formula, the power cuts and general posting orders rather than what the budget had to offer.
I remember being a part of the crowd at the Brabourne stadium when the eminent jurist Nani Palkhiwala addressed Mumbaikar’s – for us, more important than the Union Budget was Nani Palkhiwala’s budget speech. He passed away seven years ago and that brought down the curtains on an event that began in the year 1958.
But, what I liked best about the Finance Minister’s speech was the following statement of his – “A single budget speech cannot solve all the problems”.
Frankly speaking, we do not need any such Budget show baazi. When we can have stimulus budgets, interim budgets etc., where is the need to go for a General Budget. As for the Contingency fund and other complicated stuff, that can be done peacefully within the confines of the North block and the Parliament without involving the common man and prime airtime on television. Instead of watching those high profile analysts (except ogling at the female species) and the morbid debates, I would rather prefer to visit Cartoon Network or Pogo and have a hearty laugh!
Now, coming to the reason for this piece is the date mentioned in all the notifications issued yesterday. It was dated, the 7th July 200. But yesterday was the 6th of July, 2009 – I checked my “mirror” paper, even it said, 6th July, 2009. I do not believe the date on my PC – the battery is half asleep. How could the Under Secretary to the Government of India sign a notification dated the 7th July, 2009 on the 6th itself. That was like committing blasphemy!
I had seen notifications being issued on a particular date with a mention therein that the same is to come into effect on a later date. But never in my career have I seen such notifications as the ones issued yesterday! Tomorrow’s notifications issued today – is it a new phenomenon?
I visited some sections of the Central Excise Act, 1944, more particularly, section 5A and section 37 and they have the following to say –
“5A(5)
Every notification issued under sub-section (1) or sub-section (2A) shall,—
(a) unless otherwise provided, come into force on the date of its issue
by the Central Government for publication in the Official Gazette;
(b) also be published and offered for sale on the date of its issue by
the Directorate of Publicity and Public Relations, Customs and Central Excise,
New Delhi, under the Central Board of Excise and Customs constituted under
the Central Boards of Revenue Act, 1963 (54 of 1963).
(6) Notwithstanding anything contained in sub-section (5), where a notification
comes into force on a date later than the date of its issue, the same shall
be published and offered for sale by the said Directorate of Publicity and
Public Relations on a date on or before the date on which the said notification
comes into force.”
“37(1) The Central Government may make rules to carry into effect the purposes of this Act.”
Probably, there is some Supreme Court judgment or some Taxation law which says that there is no aberration in issuing such notifications. I do not wish to trace that decision or law for even if my humble but foolish argument is proved right, the Government may come out with some retrospective legislation.
By now, I have read more than 30 incisive analysis carried by TIOL and can confidently deliver a lecture on the Union Budget if given a chance.
In passing, a few random quotes -
+ If stupidity got us into this mess, then why can't it get us out? – Will Rogers
+ Genius may have its limitations, but stupidity is not thus handicapped. – Elbert Hubbard
In the event this piece of mine becomes the 31st, you know who is to be blamed!
(The views expressed are purely personal)