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2019 (5) TMI 164 - HC - Service TaxVoluntary Compliance Entitlement Scheme - no inquiry had been initiated against the respondents herein to warrant rejection of the declaration made under the VCES scheme - Section 106(2A) of the Finance Act, 2013 - HELD THAT:- Before Section 106(2) of the Finance Act, 2013 can be invoked so as to reject the application under the VCES scheme, it is necessary that the declaration is made by a person against whom an inquiry / investigation for service tax not paid / short paid has been initiated. In this case, admittedly no inquiry / investigation has been initiated against the respondents but a Notice has been issued to M/s. Marvel Realtors, which admittedly is a non-existing entity. Therefore, no proceedings have been initiated against the two respondents herein who had filed declaration under the VCES scheme so as to be hit by Section 106(2) of the Finance Act, 2013. The impugned order of the Tribunal allowing the appeal of the respondents before it, cannot be found fault with as the Authorities had no jurisdiction to reject the declaration filed under the VCES scheme by the two respondents. This is particularly so as no inquiry / investigation had been initiated in respect of them. Whether in the facts and circumstances of the case and in law, was the Tribunal justified in holding that the information sought from M/s. Marvel Realtors was an inquiry of roving nature and, therefore, the declaration ought to have been accepted? - HELD THAT:- The Tribunal found that the enquiry being made in respect of the respondents were in nature of roving enquiry, not hit by Section 106(2) of the Finance Act, 2013 - the finding of the Tribunal is one of facts and nothing has been shown to us to indicate that the same is perverse. Appeal dismissed - decided against appellant.
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