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2020 (4) TMI 446 - HC - Service TaxRejection of declaration under Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES) - Where SCN were issued before the Scheme - Payment of Tax before the enactment of Finance Act, 2013 - Benefit of export of services - HELD THAT:- Since Export of Service Rules, 2005 introduced by Notification No.9/2005-ST dated 03.03.2005 and Taxation of Services ( Provided from outside India And Received in India) Rules, 2006 introduced by Notification No.11/2006-ST dated 19.04.2006 became redundant in the light of the amendment in the Finance Act, 2012 new set of rules came to be framed. Place of Provision of Services Rules, 2012 replaced Export of Service Rules, 2005 introduced by Notification No.9/2005-ST dated 03.03.2005 and Taxation of Services ( Provided from Outside India And Received in India) Rules, 2006 introduced by Notification No.11/2006-ST dated 19.04.2006. Thus, the petitioner cannot state that neither a notice nor an order of determination had been issued to the petitioner in respect of any period on any issue prior to the Scheme. The amendment in the Finance Act, 2012 did not introduce service tax on “intermediary or insurance intermediary” service for the first time. It was liable to tax all along in terms of section 65(105)(zl) of the Finance Act, 1994 w.e.f. 01.05.2006 prior to that the service - In fact, the case of the petitioner that it was exempt from payment of tax in terms of Export of Service Rules, 2005 was rejected by the Tribunal vide Final Order No.1278/08 dated 17.11.2008 and by Commissioner of Central Excise vide Order in Original No. 19/2010 dated 03.11.2010. Thus, for the earlier period also, the petitioner has been held liable to pay tax for up for the normal period of limitation. Mere change in the provisions in the Finance Act, 1994 vide Finance Act, 2013 did not alter the nature of levy of service tax on the services provided by the petitioner. Even according to the Department, the petitioner was not exempted from payment of service tax under the provisions of the Export of Service Rules, 2005. For the period after 01.07.2012, Rule 9(c) of the Place of Provisional Rules, 2012 specifically continued the levy on services provided by the petitioner. The issue is the same issue in respect of which it has been issued with Show Cause Notice. The Service Tax Voluntary Compliance Scheme, 2013, is not intended for a person like the petitioner - petition dismissed.
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