Applicability of Section 73 (4A)

[Mehul Pandya]

Sir,

w.e.f. 14.05.15 section 73 (4A) for penalty is omitted. My query is audit team is demanding penalty under the same section for the duty demand pending from 2011 to 31.03.2015. We have paid entire duty along with interest on 03.07.15 that is after 14.05.15. Can department still demand penalty u/s 73(4A) ?

AI Summary

Penalties under Section 73(4A) can apply pre-omission for suppression, but require SCN by May 14, 2015. A query was raised regarding the applicability of Section 73(4A) of the Finance Act, 1994, which was omitted effective from May 14, 2015. The audit team demanded penalties for duty demands pending from 2011 to March 31, 2015, despite the duty and interest being paid on July 3, 2015. Respondents clarified that penalties under Section 73(4A) could apply to periods before its omission if suppression or willful misstatement was involved. However, if no show cause notice (SCN) was issued by May 14, 2015, new penal provisions would apply, and penalties could not be collected without an SCN.