Power to waive penalty or fee or both.

The Government may, by notification, waive in part or full, any penalty referred to in section 122 or section 123 or section 125 or any late fee referred to in section 47 for such class of taxpayers and under such mitigating circumstances as may be specified therein on the recommendations of the Council. (1) The principal shall, subject to such conditions and restrictions as may be prescribed, be allowed to send inputs or capital goods, without payment of tax, to a job worker for job-work and from there subsequently send to other job workers and shall— (a) supply such inputs after completion of job-work or otherwise or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job-work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out from the place of business of a job-worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided that the principal shall not supply the goods from the place of business of a job-worker in accordance with the provisions of this clause unless the said principal declares the place of business of the job worker as his additional place of business except in a case- (i) where the job-worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner: Provided further that the period of one year and three years may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding one year and two years respectively. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3) Where the inputs sent for job-work are not received back by the principal after completion of job-work or otherwise in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job-worker in accordance with the provisions of clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been supplied by the principal to the job-worker on the day when the said inputs were sent out. (4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job-work are not received back by the principal in accordance with the provisions of clause (a) of sub-section (1) or are not supplied from the place of business of the job-worker in accordance with the provisions of clause (b) of sub-section (1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job worker on the day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job-work may be supplied by the job-worker directly from his place of business on payment of tax, if such job-worker is registered, or by the principal, if the job-worker is not registered. Explanation.- For the purposes of job-work, input includes intermediate goods arising from any treatment or process carried out on the inputs by the principal or the job-worker.