Extensions should be made for reasonable period to avoid repetitive extensions – second article .

[C.A. DEV KUMAR KOTHARI]

In article under similar title that is “Extensions should be made for reasonable period to avoid repetitive extensions. - Filing of Service tax return”  webhosted on

 December 31, 2011  at

http://www.taxmanagementindia.com/visitor/detail_article.asp?ArticleID=1556

the author has expressed that administrative orders or notifications allowing extension of period to meet some statutory requirements should be made for a reasonable period. In that article a short extension was discussed. Now we find that on the same matter further extension is allowed   through the following notification, which is reproduced with high-lights added by the author:

Notification - Service Tax - ST

F. No. 137/99/2011 – Service Tax

Government of India

 

Ministry of Finance
Department of Revenue
Central Board of Excise and Customs,
**********

New Delhi, the 9^th January 2012 

 

ORDER NO 1 /2012 – Service Tax 

In exercise of the powers conferred by Rule 7(4) of the Service Tax Rules 1994 read with notification No. 48/2011-Service Tax dated 19^th October 2011, Central Board of Excise and Customs hereby extends the date of submission of half yearly return for the period April 2011 to September 2011, from 6^th January 2012 to 20^th January 2012. 

This is being done in view of the fact that assessees are facing problems in electronic filing of returns due to various reasons.

                                                                                                                           (Deepankar Aron)

Director (Service Tax)
CBEC, New Delhi

 To 

Chief Commissioners of Central Excise & Customs (All)

Chief Commissioners of Central Excise (All)

Director General of Systems

Director General of Service Tax

Commissioners of Service Tax (All)

Commissioner (DPPR), Delhi                   --x—

We find that the new notification has also been issued (on 09.01.2012)  that is three days after the earlier extended limitation lapsed on 06.01.2012.  The earlier notification was also issued belatedly as discussed in earlier article.

The taxpayers can reasonably expect that the government should allow extensions at least few days before the last day fixed which is being extended. However, we find that notifications are many times issued after the lapse of limitation fixed earlier under law or by way of some notification or order as the case may be.

We also find that this time again a short extension of  14 days in total and 10 working days has been granted. Out of these ten working days there can be some more holidays in some part of country. For example, 12^th January ,2012 has been declared a public holiday by the West Bengal Government vide the notification reproduced below:

GOVERNMENT OF WEST BENGAL
FINANCE DEPARTMENT
AUDIT BRANCH

No. 261-F(P)

Date 09.01.2012

NOTIFICATION

In exercise of the power conferred under Section 25 of the Negotiable Instruments Act, 1881 (XXVI of 1881) read with explanation thereunder and also Government of India, Ministry of Home Affairs Notification No. 20/25/56-Pub(I), dated the 8th June, 1957, the Governor is pleased to declare Thursday, the 12th January, 2012, the birthday of Swami Vivekananda as a Public holiday. This is in partial modification of earlier Notification No. 10972-F(P) dated 7.12.11.

 
A. K. Das
Joint Secretary to the
Government of West Bengal
Finance Department

  Therefore, at least in West Bengal one working day has further been reduced.

We also find that due to  chilling cold waves, rains and  fog, public is finding difficult to work. The climatic conditions are also causing interruption in of internet connectivity and communication difficulties and delays. By delay in issuing notification by three days taxpayer public were kept on tenterhook,  {Idiom:  on tenterhooks - in a state of uneasiness, suspense, or anxiety}. And then a short extension of ten working days (nine for West Bengal Public) has been allowed. This is not a proper and justified administrative policy. The Government should take a reasonable view and allow extension for some reasonable period of time. Repeated extensions of shorter duration also results into expectation of further extension in the mind of concerned persons, and particularly so when we find that difficulties are also to some extent attributable to the infrastructure of  the Government ( particularly the concerned websites facing difficulties or heavy congestion etc.)   and small tax payers who do not have adequate infrastructure. Allowing short extensions, can be considered as immature decisions due to ignoring factual position and also lack of foresight. We must learn from such experience.