TMI Blog2014 (4) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... y would accept the application and grant immunity from prosecution and also exempt interest and penalty liability. Keeping in mind the spirit of the Scheme, certain safeguards and conditions have been indicated. The first and perhaps foremost one is that the applicant should deposit 50% of the admitted liability with the declaration itself on or before 31.12.2013 and the balance should be paid latest by 31.12.2014. The second is in respect of the subject matter that there should be no issue pending or determined before any of the tax authorities or Tribunals for adjudication. The object of this is to avoid multiplicity and reopening of settled matters. Therefore, the view of the designated authority that the pendency of the issue or que ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional training. It is stated that subsequently on 27.02.2010 with the bringing into force of Notification No.3/2010, the situation changed and that vocational training institutes which are not affiliated to National Council for Vocational Training are now covered by the provisions of the Finance Act and, therefore, liable to pay service tax. The petitioner apparently was paying service tax for the period till 31.03.2012; however, it contends that due to some unavoidable reasons for the period thereafter, i.e., from 1.4.2012 to 31.12.2012 it did not deposit the service tax. In these circumstances with the coming into force of the Service Tax Voluntary Compliance Encouragement Scheme, 2013 (hereafter referred to as the Scheme ) which was bro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion given the provisions of the previous notification which existed up to 27.02.2010 and, therefore, the respondents could not have rejected the declaration. It is submitted that even the later period up to 31.03.2012 is not the subject matter of any controversy or proceeding and the petitioner had already deposited the service tax dues. In these circumstances, since the liability after that date, i.e., from 1.4.2012 to 31.12.2012 was in issue, it could legitimately seek recourse to the Scheme. 4. Counsel for the respondents submitted that the impugned order should not be interfered with. He highlighted the wide applicability of the second proviso of Section 106 especially the term any issue and submitted that the pendency of any case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch of premises under section 82 of the Chapter; or (ii) issuance of summons under section 14 of the Central Excise Act, 1944, as made applicable to the Chapter under section 83 thereof; or (iii) requiring production of accounts, documents or other evidence under the Chapter or the rules made thereunder; or (b) an audit has been initiated, and such inquiry, investigation or audit is pending as on the 1st day of March, 2013, then, the designated authority shall, by an order, and for reasons to be recorded in writing, reject such declaration. Procedure for making declaration and payment of tax dues. 107. (1) Subject to the provisions of this Scheme, a person may make a declaration to the designated authority on or before the 31 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section (2). (7) On furnishing the details of full payment of declared tax dues and the interest, if any, payable under the proviso to sub-section (4), the designated authority shall issue an acknowledgement of discharge of such dues to the declarant in such form and in such manner as may be prescribed. Immunity from penalty, interest and other proceeding. 108. (1) Notwithstanding anything contained in any provision of the Chapter, the declarant, upon payment of the tax dues declared by him under sub-section (1) of section 107 and the interest payable under the proviso to sub-section (4) thereof, shall get immunity from penalty, interest or any other proceeding under the Chapter. (2) Subject to the provisions of section 111, a de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pre-condition of a pre-deposit. It is settled law that a proviso merely carves out an exception from the operation of the main provision. The second proviso of Section 106 (1) is no exception to that rule. This proviso when it alludes to any issue must, therefore, mean that the issue as to service tax liability or quantum of liability itself for a particular period must be pending before the Tribunal or some of the tax authorities or should have been determined. As long as in respect of the particular distinct period, the subject matter of declaration or application is not pending or determined, the main part of Section 106 (1) would prevail. In the present case, there is no dispute that the subject matter of the declaration or liability ..... X X X X Extracts X X X X X X X X Extracts X X X X
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