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2018 (7) TMI 1795 - CESTAT NEW DELHIRejection of Voluntary Compliance Entitlement Scheme (VCES) - VCES claim rejected on the basis of inquiry/investigation pending against the appellant - Commercial Training and Coaching Services - case of appellant is that it was mandatory for the Department to observe the principles of natural justice in the manner as mentioned in the Circular dated 08.08.2013, prior rejecting the VCES claim of the appellant - whether the Department has rightly rejected the VCES claim of the appellant? - principles of natural justice. Held that:- The very opening line of Section 106 of the Finance Act, 2013 is a clear mandate rather on the appellant that prior declaring his tax dues under VCES he has to ensure that no notice nor any order of determination as under Section 72 or Section 73 or Section 73A of this Chapter has been issued or made qua may before 01.03.2013 - Section 106 (2) (iii) clarifies that whenever any party has been required for producing certain accounts, documents or other evidence under the chapter or rules made thereunder, the designated authority shall, by an Order and for the reasons to be recorded in writing, reject such declaration. In the present case, appellant had received several letters from the Department qua scrutiny of ST-3 returns. The letters as old as 26.09.2012, 05.12.2012, 09.10.2012 and 18.04.2013. Four of these being prior the cut off date of Section 106 of the Act i.e. 01.03.2013 - Perusal of Show Cause Notice makes it abundantly clear that the same was issued due to the differences noticed from the scrutiny as was conducted under the aforesaid four letters - the Show Cause Notice despite being post dated 01.03.2013 but the inquiry in that respect had initiated much prior to the said cut off date, that too to the notice of the appellant - the Show Cause Notice despite being post dated 01.03.2013 but the inquiry in that respect had initiated much prior to the said cut off date, that too to the notice of the appellant. Principle of natural justice - Held that:- No doubt the Circular dated 08.08.2013, clarified that whenever designated authority has a reason to believe the applicability of Section 106(2), a notice on intention should be given to the assesse within 30 days of the date of filing of the declaration stating reasons for the rejection - But the fact for the present case is that the rejection Order was passed after two years of filing of the declaration and meanwhile an inquiry in furtherance of Show Cause Notice dated 17.04.2013 was already in progress - the absence of any specific hearing in furtherance of Circular dated 08.08.2013 is not at all procedural lapse on the part of the Department as is alleged by the appellant - principles of natural justice has not been violated. Appeal dismissed - decided against appellant.
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