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2018 (6) TMI 1162 - HC - Service TaxVoluntary Compliance Entitlement Scheme - Interpretation of Statute - Section 106 (2) of the Finance Act, 2013 - denial of benefit of VCES on the ground that the audit was conducted in the premises of the appellant on 25.02.2013 and 28.02.2013 and the same was not completed as on 01.03.2013, namely the cut of date, and the provision of renting of immovable property service was unearthed during the course of audit. Held that:- Once it is shown that an audit has been initiated and it is pending, there is no scope for restricting the sweep of Section 106(2)(b) to an audit in relation to a particular kind of service. If at an audit, the department is able to unearth a service being rendered by the assessee, which has neither been registered nor been assessed to, it is definitely open to the department to require the assessee to pay the service tax and the penalty payable for providing such service. The rigour of such taxing statute cannot be whittled down by the appellant by seeking to invoke so called voluntary compliance that too after the fact that the service has not been registered or has not been taxed was discovered by the department. Benefit of VCES rightly rejected - appeal dismissed - decided against appellant.
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