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TMI BlogThe Taxation Laws (Amendment) Act, 2006X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Taxation Laws (Amendment) Act, 2006 has come into effect from 13.07.2006. Certain amendments / insertions to section 11A, section11DDA, section 35E, section 37E of the Central Excise Act, 1944 and rule 16 of the Central Excise Rules, 2002 have been effected. 2. Section 11A of the Central Excise Act, 1944 has been amended to introduce an optional scheme for enabling voluntary payment of duty by assessees, in full or in part, in cases involving fraud, mis-statement etc. along with interest and 25% of the duty amount as penalty within 30 days of the receipt of the show cause notice thereby dispensing with the rigours of adjudication procedure. This is an additional facility given to the Trade to settle the dispute at an early stage to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailment of credit of duty on inputs by the "wire drawing units" was withdrawn on 29.5.2003 by a circular issued by the Board. However, certain wire drawing units continued to pay a sum representing duty, and continued to pass on the credit of amount paid as duty to the ultimate buyer of drawn wire for further manufacture. By an amendment in the Budget 2004, Note 10 was inserted in Section XV of the Central Excise Tariff Act, 1985 to declare the said process as amounting to 'manufacture'. However, as the said Section Note was effective from 9.7.2004, it did not resolve the problem for the said period. 4.3 Accordingly, Show Cause Notices were issued to wire drawing units for recovery of Cenvat Credit availed on inputs on the grounds that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the buyer of drawn wire, in terms of the amendment. This amendment would not create any additional liability on any wire drawing unit which did not pay duty on drawn wire during the period of amendment. 4.5 As the Taxation Laws (Amendment) Bill had been introduced in Parliament, Board had, vide a letter dated 20 th July 2005, directed all field officers to keep all such cases in call book till the passage of Taxation Laws (Amendment) Bill. Now that the Bill has been passed, you are directed to take out all such cases from call book and decide them by 15th August 2006. A compliance report in this regard may be sent to the Board by 31 st August 2006. 5. Two new sections namely, section 11DDA and section 37E have been incorporated in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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