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2021 (6) TMI 632 - HC - Service TaxBenefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - petitioner had not filed returns during the relevant period - Declarations were only voluntary disclosure - obligation to pay full outstanding amount to get benefit of scheme - HELD THAT:- Once it is accepted that the declarations filed by the appellant were factually incorrect in respect of the material particulars furnished therein, the provisions of Section 129(2)(c) of the Finance Act, 2019 would have to be seen as empowering the Department to treat the declarations as never made, and to initiate proceedings for recovery of the tax amounts as per the provisions of the Finance Act, 1994, as amended, governing the levy and collection of Service Tax - The Department, however, has not chosen to deny the petitioner the benefit of the scheme, but has merely suggested a category change in respect of the declarations filed by the appellant. While the appellant had declared that the particulars of outstanding tax were based on returns filed without payment of the tax, the Department treated the declarations as “voluntary disclosures”. The effect of this category change is that the appellant will be entitled only to the benefits of waiver of interest, penalty, late fees etc. but will be obliged to pay the entire tax amount declared by it in the declarations, by virtue of the provisions of Section 124(1)(e) of the Finance Act, 2019. The stand of the Department is in fact beneficial to the appellant especially since the Department had the option of treating the petitioner's declarations as 'never made', and thereby denying it the benefits under the scheme and initiating proceedings for recovery of the tax amount, together with penalty and interest in accordance with the statutory provisions. The appellant shall make the payments required under the Scheme within 30 days from the date of receipt of a copy of this judgment, and on the appellant making the said payment, the Department shall proceed to finalize the proceedings and issue the discharge certificate to the petitioner - Appeal disposed off.
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