TMI Blog2015 (3) TMI 633X X X X Extracts X X X X X X X X Extracts X X X X ..... s to sustain the exercise and which is carried out by the respondent no.3 The declaration which has been made by a person against whom an inquiry or investigation in respect of service tax not levied or not paid or short levied or short paid and in terms of clause 106(2) is a situation which is not before us and equally not before the Designated Authority also. We do not see how therefore the clauses of the scheme would enable the authority to come to this conclusion. The further stipulation in the scheme and particularly the Service Tax Voluntary Compliance Encouragement Rules, 2013, indicate as to how the Designated Authority ought to have dealt with the declaration in terms of the scheme. It may be that the eventual order or direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts for carrying out commercial activity. These occupants challenged the levy of service tax on renting of immovable property services, but that challenge failed. 4. Eventually, the petitioner in terms of the half yearly returns computed the service tax liability. However, because of the on going litigation, the computation was not in terms of the relevant statutory provisions and Rules. The Government of India in the Budget of 2013, proposed the above scheme so as to encourage voluntary compliance. The broad features of the scheme are indicated and if parties like the petitioner who have not made a declaration in terms of the liability to pay tax make such a declaration then that has to be dealt with in accordance with the scheme. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in terms of the first proviso to Section 106(1) of the Finance Act, 1994. The reading of this proviso as also the scheme would indicate that there is no power conferred in the Respondent No.3 . If the scheme can be availed of by non filers or stop filers or persons who had not made a truthful declaration in the return, then, the application should have been scrutinized in its entirety. He, therefore, submits that the writ petition be allowed and a direction be issued to the Authority to reconsider the application in accordance with the scheme and law. 7. Mr.Jetly appearing on behalf of the respondents on the other hand would support the impugned order. He would submit that the respondent no.3 has found that the declaration that is made a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , so as to make a declaration of the service tax liability . The authority has referred to the fact that on scrutiny of the annexures/calculation sheets submitted along with this application, vis -a- vis , the service tax-3 returns filed in the past in respect of the above services, it appeared that the tax dues of ₹ 31 ,51,010 /- claimed under the declaration for the above period in respect of renting of immovable property service has already been disclosed in the respective ST 3 returns, and the said disclosed dues of ₹ 31,54,010 /-, are not paid during the respective period. Therefore, the petitioner did not appear eligible to make declaration for the period, as envisaged under the first proviso to Section 106(1) of the Finan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 70 of Chapter and disclosed his true liability but has not paid the disclosed amount of service tax or any part thereof, then he is not eligible for the declaration for the period covered by the said return. We do not understand as to how merely because what has been disclosed as true liability in the returns filed pertaining to service tax by parties like the petitioner that the amount not paid in furtherance of such disclosure would disable the parties like the petitioner from presenting the declaration in the scheme. Mr.Jetly was unable to point out any provision by which parties like the petitioners are not eligible for the VCS scheme. The contravention of the first proviso has been highlighted in the impugned order. In that regar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the task of bifurcating or computing the liability by showing some disparity or difference in the figures of the service tax returns, and the disclosures or the declarations filed in a prescribed form pursuant to this scheme. We have no provision therefore before us which would enable us to sustain the exercise and which is carried out by the respondent no.3 . The declaration which has been made by a person against whom an inquiry or investigation in respect of service tax not levied or not paid or short levied or short paid and in terms of clause 106(2) is a situation which is not before us and equally not before the Designated Authority also. We do not see how therefore the clauses of the scheme would enable the authority to come to thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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