notfn for interest

[rajkumar shukla]

In this budget earlier sections 11AAand 11AB have been merged and a new section inserted as 11AA wef 08/4/2011. notfn have been issued enhancing rate of interest from 13% to 18% wef 01/4/2011meaning thereby issued under earlier section11AA and11AB.Now when new section is effective from 08/04/2011,the notfn issued under earlier section 11AA does not hold good and govt should issue new notfn under new 11AA i.e. after 08/4/2011.comments please

[sv bhasker]

Dear Sir,

It seems you are talking of Notification No. 5/2011 CE (NT) dt 1.3.2011 and 6/2011-CE(NT) issued under erstwhile Section 11AA and Section 11AB respectively.  The Notifications continue to hold the field unless rescinded.  Please refer Section 38A of CE Act,1944. and Section 6 of General Clauses Act,1897 in this regard.

AI Summary

Continuity of notifications: interest rate notifications remain effective unless expressly rescinded under statutory continuity provisions by law. Notifications issued under earlier statutory provisions increasing the interest rate continue to operate until expressly rescinded; a re casting or renumbering of the parent statutory provisions does not automatically invalidate existing notifications, pursuant to the statutory continuity/interpretation principles governing subordinate legislation.