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2018 (4) TMI 1467 - CESTAT NEW DELHIVoluntary Compliance Encouragement Scheme (VCES) - utilization of credit for payment of tax under the scheme - Held that: - as per scheme there is no bar for utilization of credit upto 31.12.2012, however, the liability due i.e. not paid upto 31.12.2012 is required to pay in cash. Thus, only tax due upto 31.12.2012 and not paid up to 01.03.2013 cannot be paid by utilizing cenvat credit. There is no restriction either under the scheme or anywhere else to compute tax dues after considering all payment either out of challan or out available credit. As such, the appellants were entitled for making declaration under VCES and the balance unpaid service tax of ₹ 1,75,87,371/- the period from July, 2011 to December, 2012 was the amount of “tax dues” as per Section 105(1)(e) of Service Tax Voluntary Compliance Encouragement Scheme, 2013. As provided under Rule 6(2) of the Service Tax Voluntary Compliance Encouragement Rules, 2013 and clarified by CBEC Circular No. 170/5/2013-ST dated 08.08.2013, such unpaid service tax of ₹ 1,75,87,371/- was required to be paid in cash and could not be paid by utilizing Cenvat. Since the appellants have deposited the 50% of service tax before 31.12.2013 and rest amount of service tax on 28.03.2014, therefore, the compliance has been made by the appellants as per scheme. The respondent is entitled for the benefit of Service Tax Voluntary Compliance Encouragement Scheme, 2013 for discharge of the unpaid Service Tax as per the Scheme and there is no violation of the scheme and rules framed there under - appeal dismissed - decided against Revenue.
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