Home Case Index All Cases Service Tax Service Tax + HC Service Tax - 2016 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 638 - HC - Service TaxDemand of interest and penalty - VCES, 2013 - Credit of payment made before introduction of scheme was not given - Service Tax Voluntary Compliance Encouragement Scheme (VCES) - Held that:- While the tax dues declared by the petitioner was for a sum of ₹ 3,77,150/-, they paid 50% thereof i.e. Rs,1,88,575/- on 31.12.2013 and an additional sum of ₹ 1,66,260/- on 28.06.2014 prior to the cut off date prescribed under the scheme i.e 30.06.2014. The aforesaid payments were made after introduction of the scheme and prior to the cut off date. The petitioner had paid only ₹ 22,135/- prior to the introduction of the scheme. The clarification issued by the Central Board of Excise and Customs would have enabled the respondents to levy interest and impose penalty only for the amount paid by the petitioner towards tax dues prior to enactment of the scheme. Their power to levy interest and impose penalty was, therefore, only on ₹ 22,135/- paid by the petitioner during November 2007 to March 2008, and not for the remaining amount paid by them after the scheme was introduced. The impugned letter dated 03.12.2015, to the extent the petitioner was called upon to pay ₹ 1,99,183/-, is set aside. It is made clear that this order shall not preclude the respondents from initiating action to levy interest and impose penalty on the amount paid by the petitioner during November 2007 to March 2008 (i.e for ₹ 22,135/-) in accordance with law. - Decided partly in favor of petitioner.
|