Amendment in Sec.11A

[Admin TMI]

Question - What are amendments proposed in Section 11 A of Central Excise Act, 1944 in Finance Bill 2015 ?

[Admin TMI]

Section 11A is being amended so as to:

(i) Remove from the statute the category of cases where extended period of time applies but the transactions are recorded in the specified record;

(ii) Amend the provision relating to relevant date to provide definition of relevant date in respect of cases where a return is not filed on the due date and where only interest is required to be recovered.

(iii) Provide that the provisions of section 11A shall not apply to cases where the non-payment or short payment of duty is reflected in the periodic returns filed and that in such cases recovery of duty shall be made in such manner as may be prescribed in the rules.

AI Summary

Limitation on extended-period assessments: amendment restricts extended claims, defines relevant date, and channels recovery through return rules. Amendment narrows Section 11A by removing the category allowing extended-period assessment when transactions are recorded in specified records; it defines the relevant date for non-filing of returns and interest-only recovery, and excludes non-payment or short payment shown in periodic returns from Section 11A, prescribing recovery to follow rules.