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Revenue dept offers excise pay options
September, 07th 2006
In a major trade facilitation measure, the revenue department has rolled out an optional scheme for voluntary payment of excise duty in full or part, for cases involving fraud or mis-statement. Assessees in such cases can now pay duty along with interest plus 25% of the duty levied as penalty within 30 days of receiving the showcause notice from the tax department. This will enable them to get away from the rigours of lengthy adjudication procedure. The Taxation Laws (Amendment) Act, 2006, has brought about these changes in Central Excise Rules, 2002, and the Customs Act, 1962, making them more trade-friendly, Central Board of Excise and Customs Chairman VP Singh said. He said with the insertion of sub-Section 1A under Section 11A of Central Excise Act, 1944, the assesses will not have to go through the rigours of adjudication. A similar provision has also been made for customs by inserting a new sub-Section 1A under Section 28 of Customs Act. Mr Singh said wire-drawing units have also been given relief by amending the Rule 16 of the Central Excise Rules, 2002, retrospectively. Wire-drawing units who were drawing wire from wire rods can now claim credit of duty paid on inputs.
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