Retrospective exemption granted to Railway or tramway track construction material
By TIOL News Service
NEW DELHI, FEB 28, 2015: SERIAL no. 205A of notification 12/2012-CE dated 17.03.2012 as amended read with condition no. 49 exempts railway or tramway track construction material of iron and steel from payment of excise duty on the value of rails , subject to the condition that such rails have suffered excise duty and no credit of duty paid on them is taken under the CCR, 2004.
Incidentally, this entry was inserted in the notification 12/2012-CE by an amending notification 3/2014-CE dated 03.02.2014.
So, was this exemption given for the first time on 03.02.2014?
Certainly not, this entry was inserted to cover up what was missed when the gigantic notification 12/2012-CE dated 17.03.2012 made its appearance. This notification 12/2012-CE was the result of merger of notifications 3/2005-CE, 3 to 6/2006-CE, 10/2006-CE, 2/2008-CE & 59/2008.
Obviously, such a herculean task of unifying several notifications took its toll and the "exemption" available vide sl. No. 30 of notification 5/2006-CE dated 01.03.2006 to ‘Railway or tramway track construction material or iron and steel' was lost. And as mentioned, this was brought back on 03.02.2014.
So, what happened during the period 17.03.2002 to 02.02.2014?
Nothing much, except that the assessees who were enjoying the exemption all these years suddenly found themselves in receipt of SCNs demanding differential excise duty of crores of rupees.
We had while raising the issue SSI Notification and 3/2014-CE - a disconnect in DDT 2519 also mentioned about the above disconnect and suggested that due to the mistake of the notification makers the assessees should not be made to face the music and the Central Government should come out with a section 11C notification.
Thankfully, the benign government has taken care of the un-intended lapse. Clause 102 of the Finance Bill, 2015 provides a solution.
The exemption is being made applicable retrospectively for the period 17.03.2012 to 02.02.2014.
There is more too – If duty of excise has been collected already for the said period then refund is to be made subject to provisions of section 11B of the CEA, 1944. And this refund shall be claimed within six months from the date on which the Finance Bill, 2015 receives the assent of the President.
Back on track, shall we say!