The Customs, Excise and Service Tax Appellate Tribunal (“CESTAT”)’s Kolkata Bench vide order dated August 27, 2021, in the matter of M/s. RNB Carbides & Ferro Alloys Private Limited has decisively upheld refund entitlements to the assessees against the claim of recovery by the revenue department of “erroneous refunds” and has provided useful clarifications regarding the point of sale of goods and inclusion of freight charges in the assessable value of goods for the purposes of excise duty calculation.
The assessees were engaged in the manufacture and sale of Ferro Alloys, Ferro Silicon and Ferro Slag and its factory units were located within the State of Meghalaya which enjoyed the benefit of Central Excise duty exemptions under Notification No. 32/99-CE dated 08.07.1999 (“Original Notification”), which was later amended by certain Subsequent Notification. The Original Notification operated by way of refund, where under the assessee first paid the central excise duty leviable and thereafter received refund. In this case, the assesee had self-assessed the duty on clearances, paid the applicable excise duty and then filed the refund claims. The said refund claims were processed and granted but subsequently, the assessee’s books of accounts were scrutinized upon which the revenue department objected to the inclusion of freight charges in the assessable value of goods.
It was the revenue department’s case that the assessee had overvalued its products by including freight charges which ought not to have been included under Section 4(1) of the Central Excise Act, 1944 read with Rule 5 of the Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 (“Rules”). Several Show Cause Notices were issued against the assessees for recovering the alleged excess refunds. Further, numerous rounds of cross-litigation followed whereby the revenue department claimed that the assessee had suppressed the fact that outward freight was included in the assessable value and that it had also “mis-declared the Place of Removal leading to over valuation of assessable value for claiming excess refund.” The revenue department relied on the CESTAT’s earlier judgment in Montage Enterprises Pvt. Ltd.4 and Aditya Birla Chemicals India Ltd 5.
The assesee in turn, inter alia, contended that the relevant contracts/purchase orders for sale of finished products stipulated FOR destination prices and that the act of sale occurred at the buyers’ premises and therefore, duty had been paid correctly considering the value of goods inclusive of transportation charges up to the buyers’ premises. The assessee relied on the Supreme Court judgement passed in Roofit Industries Limited and Ispat Industries Limited .
Reliance was also placed on Circular No. 1065/4/2018-CX dated 08.06.2018, which stated that in case of a contract providing FOR sale, assessable value had to be determined by including all costs up to the point of sale, which in this case was the buyers’ premises. The assessee also contended that even if the transportation charges were not includible for the purpose of Central Excise valuation, the Department was bound to refund the duty paid thereon.
The central issues that came before CESTAT was:
Findings and Judgement:
The CESTAT acknowledged that the contracts/ purchase orders in the instant case were ‘door delivery’ at all-inclusive prices and noted that the purchasers reserved the right to inspection and to not accept the goods if found to be sub-par and that the assessee thereby bore the intermittent risk of loss and/or damages. The CESTAT further examined the definition of “sale” under Section 2(h) of the Central Excise Act, 1944 (“Act”) and noted that under the Act, sale takes place only upon transfer of the possession of the goods by the manufacturer to the buyer which occurred at the buyers’ premises in the present case and therefore rejected the revenue department’s claim that place of removal / point of sale cannot be buyer’s place.
Hence, it was concluded that the invocation of Rule 5 by the revenue department was misplaced because the said Rule applied to cases only where goods were sold at the place of removal but were to be delivered elsewhere, which was inapplicable in this case. Further, CESTAT observed that the assessee’s case fell within the purview of the exception to the aforesaid Rule 5 and that in light of Rule 7 read with Rule 11, the assessable value of the goods was the price charged by the assessee at the place of sale indicating that all charges up to the place of sale are includible, including freight.
The CESTAT upheld the precedential value of Roofit Industries Limited and dismissed the revenue department’s claim regarding the recovery of amount already refunded by considering it as an “erroneous refund” under Section 11A of the Act and stated that the refund already sanctioned by relying on the judicial legal precedents as well as the clarifications issued by the Central Excise Board cannot be termed as “erroneous” as further confirmed in Gauhati High Court’s Judgement in the case of Topcem India vs. Union of India 2021 (376) ELT 573.
Further, the CESTAT confirmed the assessee’s contentions that even if the assessee had paid higher Central Excise duty than was leviable, the Department was not at liberty to retain any part of such excess amount collected as duty because it can retain only those sums which represent the actual duty leviable under a statute and therefore, any excess amount collected as duty ought to be refunded. Reiterating its own observations in Aditya Birla Chemicals, CESTAT highlighted that “..the duty amount paid legally as well as the amount legally not payable but paid, both were entitled for refund if the refund claim was filed as per law.” In light of the above contentions, the appeals filed by the revenue department were dismissed and since the issue was decided on merits, the limitation aspect was also not considered.
This judgement has far-reaching effects on the refund rights of the concerned assessees who were hitherto affected by ultra vires show cause notices issued by the revenue department. Stakeholders can consider undertaking normal litigation route (adjudication and appellate) or, the writ route to challenge these arbitrary demand notices seeking to recover allegedly granted “erroneous” refund under Section 11A.
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Head – Taxation
The Gauhati High Court (“HC”) vide its judgement dated August 12, 2021, in the matter of M/s Jyothy Labs Ltd. has decisively answered question regarding eligibility of concerned taxpayers to requisition fixation of special rate of refund in respect of manufactured goods in the aftermath of the Supreme Court’s VVF judgement.
The petitioner M/s Jyothy Labs Ltd. had established a manufacturing unit within the Northeastern Region. As per the Northeastern Industrial Policy, the petitioner was earlier entitled to an exemption to excise duty vide the Original Notification (Notification No.32/99-CE dated 18.07.1999) which was later curtailed by the Subsequent Notification (notification No. 31/2008-CE dated 10.06.2008) thereby diminishing the refund entitlement while allowing the assesses to have a special rate fixed depending on value addition in each case. The Subsequent Notification was thereafter challenged by the petitioner, resulting into a High Court order in its favor.
To denote finality, the Hon’ble Supreme Court (“SC”) vide its common order dated 22.04.2020 in VVF Ltd (“VVF”) upheld the constitutional validity of the Subsequent Notifications based on public interest and revenue interest. The SC inter alia held that pending refund applications for related cases are to be decided as per the Subsequent Notifications.
In the aforesaid background, the petitioner in the current case had to finetune its refund entitlements in line with the Subsequent Notification. It is the petitioner’s case that under the Subsequent Notifications, the manufacturer is given the option to apply to the jurisdictional Commissioner of Central Excise for fixation of a special rate representing the actual value addition in respect of eligible goods manufactured. Also, the time provided for filing such application for fixing of the special rate is provided thereunder as 30th September of that given financial year, but the petitioners argued that due to the unsettled legal position, they were unable to request for a special rate of refund and hence should presently not be barred considering inadvertent circumstances.
Therefore, post the VVF Judgement, the petitioner submitted an application on 18.05.2020 before the Commissioner of Central Excise and GST, Guwahati making a request for fixation of a special rate. As the applications of the petitioner were not entertained and the department invoked the attachment of some properties of the petitioner, the petitioner approached the Gauhati HC by way of a Writ Petition. The petitioner contended that the requirement of requesting for fixation of a special rate in respect of the value addition to the manufactured goods had arisen only after the VVF judgment of the Supreme Court and that the dominant purpose of the Subsequent Notification was intended to bestow a legal right on the assessee to opt for special rate.
The central issues that came before the Gauhati HC were:
1. Whether under the Subsequent Notification, the manufacturers have an option to not avail the rates contained in the notifications and whether they have a legal right to request the authorities for fixation of a special rate as per the actual value additions to the manufactured goods?
2. Whether such applications requesting for fixation of a special rate are to be made within 30th September of the given financial year as prescribed under the Subsequent Notification, and hence are now time barred?
The HC took note that once the occasion had again arisen for the petitioner to seek for fixation of a special rate, the application for such request was made immediately. It was therefore held that the petitioner cannot be prevented from claiming its legal right for fixation of a special rate as the timeline provisions were merely incorporated to streamline the process.
The HC also observed that even if there would have been an earlier determination of such special rate, the same would have remained ineffective and un-implementable till SC had finally decided the issue and further the relevance of such determination would again be dependent on the outcome of the appeal that was pending before SC.
Further, the HC noted that the respondent GST Department did not raise any apprehensions on the ground that such applications had to be submitted prior to 30th September of the given financial year. Thus, the HC stated that on the principle of constructive res-judicata, the ground for rejecting such application because it was not submitted within prescribed timeline was not available to the respondent authorities. The HC thus directed the Principal Commissioner, GST, Guwahati to consider the application of the petitioner seeking for fixation of a special rate of refund based on the actual value addition to the manufactured goods during the given financial year and decide the same as per law and on merits.
While the VVF judgment directed the revenue department to dispose pending refund applications as per the Subsequent Notifications, it is critical to note that the applications seeking fixation of special rate for many affected assessees were not pending in cases where the assessees had not filed the said applications.
In this situation, the Gauhati HC judgement is a welcome step reinforcing the right of the assessees to claim special rate of excise refund based on actual value addition. It shall be highly beneficial for not just North-Eastern assessees but affected stakeholders in other regions as well (Kutch and Jammu) where the applications for fixation of special rate of refund may be preferred. It is imperative that the impacted assessees move swiftly to file application with the jurisdictional authorities within a reasonable time to avail the legally upheld benefit of special rate of refund for their manufactured goods.
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In her budget speech dated February 1, 2021, the Hon’ble Finance Minister Ms. Nirmala Sitharaman, had announced the Government’s intent to review the existing customs exemption notifications issued over the years after conducting extensive industry consultations. Accordingly, certain Customs’ exemptions have been identified for the purpose of reassessment.
Certain goods (largely falling under Notification no. 50/2017-Customs dated 30.06.2017) have been specified for review, and the list illustratively includes crude glycerine for manufacturing of soaps, specified lifesaving drugs, prescribed fabrics, sports related equipment, machinery/equipment for treatment of leather, magnetron for microwave manufacturing, specified parts for Printed Circuit Boards, parts of set-top box, routers and broadband modem, artificial kidney, contraceptives, magnetic tapes, photographic, filming, sound recording and radio equipment, parts/raw material for manufacture of goods supplied for off-shore oil exploration, specified machinery/parts covered in textile industry amongst others.
Importers, exporters, domestic industry, trade associations, all stakeholders, especially in international trade, and the public at large are invited to give pertinent views on the subject for consideration by the Government, in the format prescribed, latest by August 10, 2021. Click here to visit the web page for viewing the list of exemptions under review and for submitting your suggestions.
We encourage you to peruse the list and the associated line items and examine its impact on your business. It will be imperative to strategize over business / sector specific concerns to put forward an adequate representation before the Government in order to avoid any increase in overall tax cost.
With a 7.1 percent (approx.) contribution to India’s GDP and the creator of 35 million job opportunities in the country, it is estimated to become the world’s third-largest automotive market in terms of volume by 2026.
Keeping in mind the strategic and economic potential of the sector, the Central Government announced a separate PLI Scheme to boost investments and create global automotive manufacturing champions in India.
The PLI scheme for Automobiles & Auto Components (‘Auto Scheme’) was announced with planned financial outlay of ₹ 57,042 crores (the largest outlay amongst all PLI schemes). It sets an ambitious target of additional investment of over ₹ 1 lakh crore over a five-year period with potential for additional employment generation of 58.84 lakh jobs.
While the Auto Scheme is yet to be notified and is pending Cabinet approval, the broad contours of the Scheme (as available in public domain) is discussed hereunder.
(₹ in Crores)
|Sourcing Incentive||7,210||Benefits for incentivizing ‘increase in purchase value’. For OEMs and CMs.|
|18.075||Sales value linked incentives.
For OEMs only.
|Logistics Cost Incentive||23,628||Sales based incentives to offset logistics costs. For OEMs and CMs.|
|Component Champion Incentive||8,129||Incentives based on additional auto
(₹ in Crores)
 Industry representations have been made to change the Base Year to FY 2019-20
 As per article dated December 17, 2020, and can be accessed at https://auto.economictimes.indiatimes.com/news/industry/etauto-exclusive-pli-scheme-draft- offers-benefit-to-big-auto-manufacturers-only-here-is-why/79751658
 As per news report dated March 16, 2021. Same can be accessed at https://www.businesstoday.in/current/economy-politics/govt- may-upgrade-eligibility-criteria-for-automakers-under-pli-scheme/story/433950.html
 Article can be accessed at https://www.cnbctv18.com/auto/auto-pli-scheme-to-comprise-4-sub-schemes-here-are-the-outlays-8434781.htm
The 43rd GST Council Meeting held on May 28, 2021, led to a series of important fiscal and GST related decisions. With an aim to provide a level playing field to the domestic vis-a-vis foreign service providers qua the maintenance, repair, and overhaul (MRO) services in the shipping sector, the following recommendations were made by the Council (which have now been notified):
In view of the above infirmities, this issue deserves to be adequately represented before the GST Council for its reconsideration so as to avoid imminent tax uncertainties and litigations.
Governments bring in policy initiatives with an inherent strong developmental agenda aimed at transforming underdeveloped regions thereby accelerating the pace of growth to foster employment, community progress and financial participation.
In the year 2002, as a subset of the New Industrial Policy of the Union Government, certain Notifications (which can be designated as “Original Notifications”1) were issued under Section 5A of the Central Excise Act, 1944 (“CEA”) qua Jammu and Kashmir, North-East and Kutch (Gujarat) regions. By virtue of these Original Notifications, a manufacturing unit (new units and/or existing units which undertook substantial expansion) located in the specified areas producing prescribed goods was entitled to claim refund of the 100% Central Excise Duty paid through cash after utilizing the eligible CENVAT Credit.
In 2008, the Central Government amended the Original Notifications, and the “Subsequent Notifications”2, provided that the exemption by way of refund would be the amount equivalent to the duty payable on value addition carried out by the unit, which value addition is computed as a prescribed percentage of the total duty payable on the enlisted goods manufactured in such unit. The Subsequent Notifications further provided that a special rate for value addition may be fixed where the actual value addition is more than that prescribed in the Original Notification.
Aggrieved by the changing policy infrastructure regarding excise levy coupled with convoluted refund mechanisms which raised apprehensions regarding stark reduction in the entitlement of refunds, the assessees across India moved to several judicial forums to bring an end to the regulatory confusion. The various affected assessees filed Writ Petitions before the High Courts of Gujarat, Sikkim and Guwahati under Article 226 of the Constitution of India, challenging the constitutionality and validity of the Subsequent Notifications, primarily on the basis of the doctrine of promissory estoppel. The respective High Courts (“HC”) allowed the Writs and quashed the Subsequent Notifications to the effect of invalidating the reduction in the quantum of refund and reinstating the Original Notifications. However, in the Department’s Special Leave Petitions against these HC orders, the Hon’ble Supreme Court (“SC”) vide its common order dated 22.04.2020 in VVF Ltd. [2020 SCC OnLine SC 378] (“VVF”)upheld the constitutional validityof theSubsequent Notifications as against the promissory estoppel of the Original Notification in consideration of public interest and the revenue interest; designating such Subsequent Notifications as “clarificatory” in nature and as a valid extension of the Original Notifications.
Certain other assessees adopted the appellate route and preferred appeals before the Customs Excise and Service Tax Appellate Tribunal (“CESTAT”) against the rejection of 100% refund by the jurisdictional adjudicating authorities. The CESTAT decided some of the matters in favour of the aggrieved assessees thereby granting 100% refund of Basic Excise Duty (“BED”) along with Education Cess (“ED Cess”) and the Secondary & Higher Education Cess (“SHE Cess”) in line with the prevalent legal position at the time i.e. the judgement of the SC in SRD Nutrients Pvt. Ltd. [(2018) 1 SCC 105] (“SRD”). This SRD judgment was held per incuriam in Unicorn Industries [(2020) 3 SCC 492] (“Unicorn”) thereby re-opening the gamut of questions pertaining to the refund entitlement of the assessees.
The issuance and legality of SCNs
As an aftereffect of this newly established judicial perspective attained from VVF and Unicorn, the tax department proactively began issuing self-serving Show Cause Notices (“SCNs”) to demand so called “erroneously granted refunds” from the assesses under Section 11A of the CEA in cases where: (i) any refund amount was granted in excess of the prescribed value addition norm as per the Subsequent Notifications, and (ii) refund of ED Cess and SHE Cess was granted pursuant to the SRD judgement. These SCNs appear to be without jurisdiction, unconstitutional and bad in law on many counts, few of which are mentioned below:
Basis the above aspects, the SCNs having been issued in arbitrary supersession of earlier refund orders and basis the one-sided application of the VVF and Unicorn judgments may be challenged by filing Writ Petitions before the jurisdictional High Courts under Article 226 of the Constitution of India. It is needless to mention that the issue of alternate remedy will have to be addressed appropriately, on the basis that Writ Petitions are maintainable where the order or proceedings are purported to be wholly without jurisdiction and/or wrongful usurpation of power is alleged.7
Fixation of special rates for the eligible assesses
The Department has made no efforts to cater to the unresolved issue of special rate fixation pursuant to the Subsequent Notifications. The VVF judgment has been selectively appreciated by the SCNs in ignorance of the fact that the Subsequent Notifications (which have been upheld in totality by the SC in VVF) allowed the assessees to apply for a special rate of refund where the actual value addition made was more than the deemed value addition. Aggrieved assessees are still awaiting a well-founded fixation of special rate by the tax department corresponding to the actual value addition made by them and hence are unfairly subjected to disproportionate refund reversal orders. The partial application of the VVF judgment by the department is illegitimate and, the eligible assesses should be allowed to have the special rates fixed subject to the conditions prescribed in the Subsequent Notifications.
Date from which interest is to be computed
The next unsettling question is: since when does the interest meter start ticking in the event of recovery to be made by the SCNs? As per Section 11AA read with Section 11A of the CEA, interest is calculated from the date on which the duty becomes due up to the date of actual payment. However, the aggrieved stakeholders are unclear as to whether the interest on repayment of earlier granted refunds will be computed from:
While the manufacturers have no certain answer regarding the duration from which the interest demanded in the SCNs shall be calculated, the businesses may explore the option of repaying the demand amount (i.e. BED, ED Cess and SHE Cess) under protest without extinguishing their legal remedies against the claim in order to arrest the rising interest liability.
Central Excise Conundrum in the times of GST
It has been four years since the ambitious launch of Goods and Services Tax in 2017, however the erstwhile unresolved Central Excise implications in the area based exemption debacle as discussed above has caused complete dismay and disarray for the involved stakeholders throwing their financial stability off-guard. While the industries are striving with the ongoing COVID-19 pandemic and compliances under the GST laws, the hasty and legally unsound actions of the taxmen in seeking recovery of earlier granted refunds along with interest have further adversely impacted the aggrieved industry members. On a pan-India level, a broad-based timely resolution is urgently needed to save precious judicial time and resources of business communities who are already distressed due to the pandemic.
Since the present issue involves different jurisdictions and authorities at various levels, a circular / direction by the Central Board of Indirect Taxes and Customs (CBIC) clarifying the stance of the Revenue Department and actions to be adopted by the field formations qua different set of assesses basis their previous proceedings, will be instrumental in alleviating the uncertainty faced.
DISCLAIMER: The views and opinions expressed in this article are those of the author alone. This article is for general informational purposes only and should not be construed as legal advice or be a substitute for legal counsel on any subject matter. No reader should act or rely on any information contained in this article, without first seeking appropriate legal or other professional advice.
Union finance minister Nirmala Sitharaman will chair the first Goods and Services Tax (GST) Council meet of this financial year on Friday. From compensation to states to tax waivers on various medicines, medical devices, and health services amid the second wave of the coronavirus pandemic — a host of issues will be discussed at the 43rd GST Council meet, according to reports. This will be the first GST meet after a gap of seven months.
Here are the key things to expect from 43rd GST meet on Friday
1) GST Compensation to the states
The GST Council is expected to discuss the compensation shortfall to the states amid the coronavirus pandemic. The shortfall in GST compensation payable to states in the current fiscal has been estimated at Rs 2.69 lakh crore. Several states want an extension of the GST compensation beyond July 2022 as economic uncertainty continues, according to ANI reports.
“This comes in the backdrop of a lot of states raising the issue of non-convening of the meeting for almost two quarters. With the revenue expected to decline due to the lockdown and second wave of the ongoing pandemic, the mode of compensation for states for the shortfall is expected to take centre stage. Even last time, there was a lot of confrontation between the States and the Centre on this subject and it finally got resolved. This time as well it is expected to be no different," Divakar Vijayasarathy, founder and managing partner, DVS Advisors LLP
2) GST on medical devices and health services
The second wave of COVID-19 pandemic severely hit the country. Amid this, several states asked the reduction of GST rates on essential COVID-19 supplies. Rajasthan, Punjab, Chhattisgarh, Tamil Nadu, Maharashtra, Jharkhand, Kerala and West Bengal devised a joint strategy to press for a zero tax rate on COVID essentials, PTI reported.
Earlier this month, finance minister explained that how exempting COVID vaccines, medicines and oxygen concentrators from GST ambit will negatively impact the prices.
“Earlier, finance minister has highlighted that if full GST exemption is given qua COVID related items, the domestic manufacturers would not be able to offset their input taxes and would pass them on to the end consumers by increasing the sale prices. Given this situation, the GST Council may deliberate on keeping COVID-related medicines and equipment under the ‘zero-rated supply’ so as to allow seamless flow of input tax credits. The aforesaid will require amendment in IGST Act to the extent of expanding the definition of zero rated supply," said Prateek Bansal, Associate Partner, White & Brief Advocates and Solicitors.
“Further, the Council can be expected to either exempt or allow input tax credit qua COVID-related expenditures (viz. medical equipment and vaccination drives) incurred by the businesses for the welfare of employees or their families," Bansal added.
3) Multiple GST rate-slabs
The rationalization of multiple GST rate slabs has been a long-standing demand of the industry. Some experts believe that the GST Council may look at ways to rationalize the GST rates and reduce the number of slabs in Friday’s meet.
4) Extension of GST filing deadlines
Earlier in May, the finance ministry had extended timelines of various GST compliance for March and April considering the ongoing coronavirus pandemic. As several states announced local lockdowns till the end of this month, the GST Council is likely to announce another set of extension for May and June. “As a measure of temporary relief, the GST Council is expected to reduce the interest rate applicable on delay in payment of tax; undo or reduce the penalty imposed in case of default in the furnishing of returns, and extend the limitation period for filing of the refund claims with retrospective effect," said Gunjan Mishra, Partner, L&L Partners.
In a bid to boost the sales affected by the COVID-19 pandemic, the GST council might also consider lowering of present rate of 28 per cent on two-wheelers. Further, the Council might also provide an option of availing input tax credit to certain sectors (such as hospitality, real estate, etc.) which have been worst hit by the ongoing pandemic.
In the wake of severe Covid-19 pandemic, the Central Board of Direct Taxes (CBDT) has decided to extend timelines of various tax compliance dates on Saturday. “In view of the adverse circumstances arising due to the severe Covid-19 pandemic and also in view of the several requests received from taxpayers, tax consultants & other stakeholders from across the country, requesting that various compliance dates may be relaxed, the Government has extended certain timelines today," the ministry of finance said in a statement.
The move is aimed at mitigating “the difficulties being faced by various stakeholders," it further added. The “relaxations are the latest among the recent initiatives taken by the government to ease compliances to be made by the taxpayers with the aim to grant respite during these difficult times," it mentioned in a notification.
“It’s a welcome move to extend the timeline of various tax compliances as the country is struggling with severe second wave of coronavirus," said Sumit Mangal, Partner, L&L Partners.
Under section 119 of the Income-tax Act, 1961, CBDT has provided the following relaxations:
1) The filing of belated return under sub-section (4) and revised return under sub-section (5) of Section 139 of the Income Tax Act, for Assessment Year 2020-21, which was required to be filed on or before March 31, 2021, may be filed on or before May 31, 2021, CBDT said in a statement.
2) Individuals can file Appeal to Commissioner (Appeals) under Chapter XX of the Income Tax Act within “the time provided under that Section or by May 31, 2021, whichever is later," CBDT said. The last date of filing under that Section was set at April 1, 2021.
3) “Objections to Dispute Resolution Panel (DRP) under Section 144C of the Act, for which the last date of filing under that Section is April 1, 2021 or thereafter, may be filed within the time provided under that Section or by May 31, 2021, whichever is later," the ministry added.
4) Income-tax return in response to notice under Section 148 of the Act may be filed within the time allowed under that notice or by May 31, 2021, it said.
5) “Payment of tax deducted under Section 194-IA, Section 194-IB and Section 194M of the Act, and filing of challan-cum-statement for such tax deducted, which are required to be paid and furnished by April 30, 2021(respectively) under Rule 30 of the Income-tax Rules, 1962, may be paid and furnished on or before May 31, 2021," the notification stated.
6) “Statement in Form No. 61, containing particulars of declarations received in Form No.60, which is due to be furnished on or before April 30, 2021, may be furnished on or before May 31, 2021," it also said.
“While time limit to file appeal to Commissioner (Appeals) has been extended to May 31, the time to pay tax demand pursuant to final assessment order has not been specifically extended," Sumit Mangal added.
The finance ministry earlier relaxed the timeline for payments under the Direct Tax Vivad se Vishwas Act, 2020 (without an additional amount) till June 30, 2021. Launched in 2020, the Direct Tax ‘Vivad se Vishwas’ Act aims to reduce pending income tax litigation, generate timely revenue for the government.
“The extension of deadlines under the Income Tax Act appears to be in line with the Supreme Court Order dated 27.04.2021. Similar extension of timelines for compliance under the GST law is also the need of the hour as the businesses are striving every month to make tax payments and file returns," said Prateek Bansal, Associate Partner, White & Brief Advocates & Solicitors.