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

Penalty under Section 73(4A) removed; old penalties non retroactive and require an SCN under transitory law.
Omission of the erstwhile penalty provision took effect prospectively; the old penalty applies only to pre omission periods if its elements (suppression or willful misstatement) are present. Section 78B's transitory scheme makes cases without an issued show cause notice on the cut off subject to the new penal regime, and no penalty under the former provision may be collected after the omission date without initiation of proceedings under the revised provisions.