Appellate Order To Effect Penalty

Further , very important explanations has been added to the proposed Section 11AC

Applicability of New Section 11AC

Explanation I covers the following 3 situations :

Situation 1 – where no show cause notice has been issued before the the date of assent of president to the Finance Bill,2015 , the provisions of to be enacted new Section 11AC of the Finance Act,2015 shall be applicable .

Situation 2 – where show cause notice has been issued before the the date of assent of president to the Finance Bill,2015

but

order is not issued before the assent of the president to the Finance Bill 2015 , then provisions of to be enacted new Section 11AC of the Finance Act,2015 shall be applicable .

Provided

such person pays the interest, duty and penalty in terms clause d) of proposed Section 11AC within 30 days from the date on which the Finance Bill ,2015 receives the assent of the President .

Situation 3 – where order is passed after the assent of the president to the Finance Bill 2015 , then provisions of to be enacted new Section 11AC of the Finance Act,2015 shall be applicable .

Provided

such person pays the interest, duty and penalty in terms of clause b) or e) of proposed Section 11AC within 30 days from the date of communication of the order.

Explanation II to the proposed Section 11AC is equally important as it explain the word “specified records”

It is pertinent to note that similar explanation already existed, since 2011, in Section 73 of Finance Act,1994 for service tax as below