The ‘Search and Seizure provision’ existing in the Indian Direct Tax Code (DTC) of 2009, has been eliminated in the new Direct Tax Code this year. The old DTC, 2009 contained a clause stating: “The Authorized officer shall have all the powers to …seize any stock in trade of bullion, precious or semi-precious stones or jewellery, found as a result of such search. This had been long opposed by the All India Gems & Jewellery Trade federation on behalf of the jewellery industry and its elimination has come as a relief to the industry, a victory to the efforts of the GJF - a national body of the jewellery trade which made representations to the Finance ministry to seek modifications in the DTC. %% According to the old section, the seizure of such stock-in-trade of jewellery, bullion and precious stones, would cause the assesses of the gem and jewllery industry to face cessation of their manufacturing operations and subsequent loss of sales, which it believed was a total discrimination towards a single industry. %% The relief provided by in the New DTC Bill, 2010, clause 135(2) deals with powers of Authorized officer during search and seizure proceedings. The provision relating to seizure of stock-in-trade of jewellery, bullion and precious stones has been removed from Clause 135(2). %% With this removal, the jewellers can breathe a sigh of relief. %% |* The finance ministry of government of India, during its last Budget- 2009 has committed to work at bringing about structural changes in the direct tax system by releasing a new DTC to consolidate and amend the law relating to direct taxes. Pursuant to this, a Draft DTC along with a Discussion Paper had been released to the public for debate in 2009. Based on the inputs received, the Government had proposed to finalize the DTC Bill for its introduction in the Parliament. However, the implementation of this new DTC legislation has been deferred by the government and is slated to come into force only from April 2012-13 financial year.*|