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2016 (3) TMI 351 - CALCUTTA HIGH COURTFailure to deposit 50% under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES) - Admittedly, the respondent nos. 1 and 2 made a declaration in VCES Form I declaring that a sum of ₹ 11,49,32,357/- was due as service tax and intended to make payment of 50% of the dues under VCES. However, by letter dated 24th December, 2014, the writ petitioners had indicated the manner in which the tax dues were to be paid and also prayed for adjustment with the income tax refund which, as evident from the letter dated 26th December, 2013, was rejected by the service tax authorities. The question is, whether the respondent nos. 1 and 2 were entitled under VCES to seek adjustment of service tax dues against the income tax refund. Held that:- Since admittedly 50% of the declared tax dues were not paid by 31st December, 2013, the writ petitioners were not entitled to the benefits under the VCES. Since VCES is a statutory scheme having a fixed time frame, we are of the view that Court by its observations cannot enlarge the time frame as has been done in the instant case. Rather non-payment of 50% of the declared tax dues or other dues under section 107(3) empowers the service tax authority to proceed under section 87 and also under section 89 of the Act, which in the instant case has been initiated. - Decided in favor of revenue.
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