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2022 (12) TMI 50 - AT - Service TaxInterpretation of the expression “true liability” in the first proviso to section 106 of the Finance Act, 1994 [the Finance Act] relating to Service Tax Voluntary Compliance Encouragement of the Finance Act Scheme 2013 - period April, 2012 to September, 2012 - HELD THAT:- It is under sub-section (1) of section 106 of the Finance Act that any person can declare his tax dues in respect of which no notice or an order of determination under section 73A has been issued or made before the first day of March, 2013. However, the first proviso provides that any person who has furnished return under section 70 and disclosed his true liability, but has not paid the disclosed amount of service tax or any part thereof shall not be eligible to make a declaration for the period covered by the said return. Thus, it is only in a case where a person has disclosed his true liability but has not paid the disclosed amount of service tax or any part thereof that a person would not be eligible to make a declaration for the period covered by the return. A person who claims that he has not disclosed his true liability in the return and has not paid the amount can, therefore, file a declaration under section 107(1) of the Finance Act. Some emphasis has to be placed to the word “true” occurring before “liability” in the first proviso to section 106 of the Finance Act - In the present case, as noticed above, the appellant claimed that it had not disclosed the true liability in the service tax return earlier filed for the period April, 2012 to September, 2012 and it is for this reason that the true liability was disclosed in the declaration filed by the appellant under section 107(1) of the Finance Act. The conclusion drawn by the Commissioner in the impugned order that since the amount of Rs. 64,67,773/- disclosed in the return was included in the amount of Rs. 66,98,098/- declared by the appellant, the appellant would not be justified in including this amount of Rs. 64,67,773/- in the declaration is apparently not in accordance with the provisions of section 106 of the Finance Act. If a true liability is disclosed subsequently by a person it is obvious that the amount earlier declared in the return would be included and it would not disentitle a person from including this amount in the declaration filed under section 106(1) of the Finance Act. There cannot be two amount towards tax dues. The appellant is clearly entitled to claim the entire amount of Rs. 01,051,31,384/- in the declaration filed under section 107(1) of the Finance Act and the view of the Commissioner to the contrary cannot be accepted - Appeal allowed.
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