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2022 (3) TMI 634 - CESTAT CHENNAIRejection of application filed under Voluntary Compliance Encouragement Scheme, 2013 - rejection on the ground that the appellant has not paid 50% of the declared tax dues on or before the last date i.e. 31.12.2013 - whether the appellant can be considered to have paid 50% of the declared tax dues when part of the amount has been presented by cheque on the last date of the scheme? - HELD THAT:- Rule 6 of the Scheme which has been noticed above states that the amount has to be paid in the manner prescribed for payment of service tax under Service Tax Rules, 1994. Rule 6(2A) of Service Tax Rules, 1994 provides for payment of service tax by way of cheque also. In the present case, the appellant has filed the declaration along with the demand draft and cheque on the last date of the scheme. In page 32 of the appeal paper book, the letter accompanied with the documents is furnished by the appellant - Though the appellant specified the number of the demand draft as well as the cheque, he had not specifically stated that 000416 pertains to cheque and not demand draft. It is seen that department has collected the bank details of the appellant and found that there was no sufficient fund to honour the cheque on 31.12.2013. On receiving the cheque, the department ought to have presented the cheque and if the same is dishonored could have rejected the declaration as the payment of 50% dues was not made. Without presenting the cheque, merely collecting the bank details on the date of closure of the scheme, it cannot be concluded that appellant has not paid the tax dues in accordance with the provisions of law. The rejection of declaration filed by appellant under VCES cannot sustain - Appeal allowed - decided in favor of appellant.
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