TMI Blog2014 (7) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... ilable to the defaulting declarant. The aforesaid provisions have to be read conjointly with section 110 of the said Act. If default is committed under the scheme the consequences provided in the scheme is to be adhered to and the authority cannot travel beyond the boundaries set therein. The benefit under the scheme is provided to a person against whom no enquiry or investigation or other proceeding are initiated. Section 106 of the said Act makes the position clear and, therefore, the person who voluntarily declare his liability to pay service tax, if commits defaults in complying the provisions contained under the said scheme, the authorities are bound to take action under the provisions which provides for the steps to be taken for non-compliance of any of the provisions of the said scheme. Proviso of section 107(4) for recovery alongwith interest is applicable only in respect of Sub-section (4) of Section 107 and cannot be stretched to Sub-section (3) of Section 107. The authorities can take recourse under Section 110 of the said Act, in the event any default is committed under the said scheme. - Decided against assessee. - WP No.10245 (W) of 2014 - - - Dated:- 3-4-2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appearing for the petitioners raised a point that when the proviso appended to Section 107 entitles the declarant to pay the amount after the period provided under Sub-section (3) and Subsection (4) with interest till December 31, 2014, the authorities cannot take any recourse for recovery thereof including the steps for arrest of the declarant. He further submits that Section 110 of the said scheme clearly provides for modes of recovery under Section 87 of the Finance Act and, therefore, the authorities cannot take recourse to any other provisions except the one provided therein. Lastly it is submitted that the petitioner is all along ready to deposit the balance amount of the tax dues with interest under the proviso to the aforesaid section and, therefore, action of the authorities in taking recourse to other provisions except the provision under Section 87 of the said chapter is invalid, illegal and beyond the boundary set by the said scheme. 5. On behalf of the respondent authorities, it is submitted that the moment 50% of the tax dues is not paid on/or before December 31, 2013, the declaration itself becomes invalid and, therefore, the authorities are not bound to take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e or payable by the declarant for the month of January 2013 and subsequent months shall be paid by him in accordance with the provisions of the Chapter and accordingly, interest for delay in payment thereof, shall also be payable under the Chapter. (6) The declarant shall furnish to the designated authority details of payment made from time to time under this Scheme along with a copy of acknowledgement issued to him under sub-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. * * * * * * * * 109. No refund of amount paid under the Scheme - Any amount paid in pursuance of a declaration made under sub-section (1) if section 97 shall not be refundable under any circumstances. 110. Tax dues declared but not paid - Where the declarant fails to pay the tax dues, either fully or in part, as declared by him, such dues along with interest thereon shall be recovered under the provisions of section 87 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there is clear indication in the proviso relating to the starting point of the limitation, there is no ambiguity to understand that such proviso is relatable to Sub-section (4) of Section 107 and not Sub-Section (3) thereof. The aforesaid proposition can be further fortified from Sub-section (7) of Section 107 of the said Act which is in unequivocal terms says that 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. 10. The legislature have clearly indicated that such proviso is appended to Sub-Section (4) and by no stretch of imagination it would be conceived that the same can also apply in the eventuality contemplated under Sub- Section (3) of Section 107 thereof. 11. There is a fallacy in the submission of the learned advocate appearing for the respondent on the interpretation of Section 110 of the said scheme. If the provisions of the scheme are read meaningfully, it leaves no manner of doubt that once the person makes a declaration for inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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