Indian Kanoon - Search engine for Indian Law

Mr.Sunil P. Prasad, Advocate for Petitioner Mr.Jeevan J. Neeralgi, Advocate for Respondents The petitioner, M/s.Premier Associates is aggrieved by the rejection of its Declaration under Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES, 2013) by the respondent No.1- Assistant Commissioner of Central Excise and Service Tax, Mangalore, vide Annexure-L dated 10.3.2014 on the ground that the tax payable and due to the petitioner as declared under the said VCES, 2013 was Date of Order 28-11-2017 W.P.No.3824/2016 Premier Associates Vs. The Assistant Commissioner of Service Tax & Others. paid before the date of promulgation itself on 10.5.2013. The reasons assigned in the impugned order by the said Assistant Commissioner is quoted below for ready reference:-

6. I find from the payment details made towards the tax dues declared under VCES-1 that the declarant had paid the tax dues declared under VCES-1, before 10th May 2013, excepting challan No.00345 dated 24-06-2013 for Rs.138/-. The Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES) has come into effect from 10.05.2013. The Central Board of Excise & Customs, vide Circular No.170/5/2013- ST dated 08-08-2013, has clarified that 'if any Date of Order 28-11-2017 W.P.No.3824/2016 Premier Associates Vs. The Assistant Commissioner of Service Tax & Others.

'tax dues' have been paid prior to the enactment of the scheme, any liability of interest or penalty thereon shall be adjudicated as per the provisions of Chapter V of the Finance Act, 1994 and paid accordingly. The immunity from interest and penalty is only for 'tax dues' declared under VCES'.

7. The declarant had made the payment towards tax dues declared under VCES, 2013 (excepting Rs.138/-), prior to the enactment of Service Tax Voluntary Compliance Encouragement Scheme, 2013, i.e. before 10th May 2013. The declarant had discharged their service tax liability before 10-05-2013 and therefore, there was no tax dues to be declared under VCES-1 as on the date of enactment of VCES, 2013. Therefore, in view of the statutory provisions and the clarification issued by the Board, referred above, I hold that the VCES-1 dated 31-12-2013, filed by the delcarant, is liable to be rejected.

clarification issued by CBEC that such adjudication can be made does not empower them to determine the same later on after rejecting the Declaration itself before hand.

(ii) The Clarification obviously could not go beyond the terms of VCES, 2013 itself. The Scheme clearly stipulates that the Service Tax due and payable and the remaining outstanding as on 1.3.2013, if paid, according to the terms of the declaration, which even permits the payment in installments, the Immunity from interest and penalty shall be given to the petitioner in terms of Clause 108 of VCES, 2013. Clause 109 of VCES, 2013 prohibits the refund of amount paid under the said declaration under any circumstances.