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2014 (7) TMI 585 - HC - Service TaxValidity of recovery proceedings - Non payment of 50% of the tax by December 31, 2013 as per the VCES scheme - Interpretation of Section 107 and Section 110 of the Service Tax Voluntary Compliance Encouragement Scheme, 2013 - petitioners raised a point that when the proviso appended to Section 107 entitles the declarant to pay the amount after the period provided under Sub-section (3) and Subsection (4) with interest till December 31, 2014, the authorities cannot take any recourse for recovery thereof including the steps for arrest of the declarant. - It is tried to be contended by the respondent that Section 102 which contemplates for removal of doubts makes it abundantly clear that the immunity provided under the scheme would not be available to the declarant who committed default for compliance of the conditions relating to the deposit of tax dues. Held that:- On meaningful reading of the provisions contained therein it appears that the immunity as to any benefit, concession or immunity granted under Section 96 shall not be available to the defaulting declarant. The aforesaid provisions have to be read conjointly with section 110 of the said Act. If default is committed under the scheme the consequences provided in the scheme is to be adhered to and the authority cannot travel beyond the boundaries set therein. The benefit under the scheme is provided to a person against whom no enquiry or investigation or other proceeding are initiated. Section 106 of the said Act makes the position clear and, therefore, the person who voluntarily declare his liability to pay service tax, if commits defaults in complying the provisions contained under the said scheme, the authorities are bound to take action under the provisions which provides for the steps to be taken for non-compliance of any of the provisions of the said scheme. Proviso of section 107(4) for recovery alongwith interest is applicable only in respect of Sub-section (4) of Section 107 and cannot be stretched to Sub-section (3) of Section 107. The authorities can take recourse under Section 110 of the said Act, in the event any default is committed under the said scheme. - Decided against assessee.
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