As usual Govt. brings the new laws (like ER 7) to stop the evidation of duty or taxes, but question aries whether these laws are practically checked for its effectivenss ? As in ER 7 Govt. has given simple equation between Product and electricity consumption, but in case of pharma company it is difficult to ascertain it. For e.g. few products are such which requires less use of machinery and more of manual and vice a versa, so how they will come to know the combination has been produced? Moreover use ot D.G. sets, again the same question , one company might have used to D.G. set at optimum and another may not ? So rather itroducing new laws, they must check its effectiveness practically.
Vijay Soni
CAclubindia
