Notification Vs Press Release

[Krishna Murthy]

Sir, recently CBIC has issued a notification NN 63/2020 on 25-08-2020 stating that the amended Sec 50 would be applicable wef 01-09-2020 prospectively. Later, on 26-08-2020 CBIC came out with a press release stating that though NN 63/2020 was issued prospectively, no recoveries shall be made for the past period as well. My question is does such Press Release have legal force and does the Proper Office is bound to accept the Press Release inspite of the notification being prospective.

[YAGAY andSUN]

Press release has no legal sanctity. Changes in law are governed by Notifications duly published through official gazette.

[KASTURI SETHI]

I support the views of M/s.Yagay and Sun, Sir. The purpose of press release is just to pacify and convince the Trade and Industry to the extent that Govt's intention is clear to grant benefit for the past period. GST Council has already okayed the retrospective amendment. Govt. has to complete statutory formalities which may take time. Now all are hopeful that practical shape for providing benefits retrospectively will be given.

AI Summary

Press release has no legal sanctity; only Gazette notifications govern applicability of amended tax provisions. Press releases lack legal force; only notifications published in the official Gazette govern the applicability of amended tax provisions. Administrative statements indicating intent or reassurances do not bind tax authorities or alter legal obligations until statutory formalities for retrospective amendment are completed.