TMI Blog2018 (2) TMI 408X X X X Extracts X X X X X X X X Extracts X X X X ..... tober 2007 to December 2012, which was due and payable as on 1.3.2013, and the same could be paid between the period 1.3.2013 and 10.5.2013 , when the VCES Scheme itself was announced. In the absence of any such prohibition, the respondent–Assistant Commissioner could not reject the Declaration solely on this ground. This Court is clearly of the opinion that the rejection of the Declaration of the petitioner under VCES, 2013 by the respondent– Assistant Commissioner was unjustified and cannot be sustained and the Writ Petition therefore deserves to be allowed and the same is accordingly allowed - the matter is remanded back to the said Assistant Commissioner, Mangalore for passing a fresh order in accordance with law - petition allowed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -06-2013 for ₹ 138/-. The Service Tax Voluntary Compliance Encouragement Scheme, 2013 (VCES) has come into effect from 10.05.2013. The Central Board of Excise Customs, vide Circular No.170/5/2013- ST dated 08-08-2013, has clarified that if any tax dues have been paid prior to the enactment of the scheme, any liability of interest or penalty thereon shall be adjudicated as per the provisions of Chapter V of the Finance Act, 1994 and paid accordingly. The immunity from interest and penalty is only for tax dues declared under VCES . 7. The declarant had made the payment towards tax dues declared under VCES, 2013 (excepting ₹ 138/-), prior to the enactment of Service Tax Voluntary Compliance Encouragement Scheme, 2013, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner . 3. Drawing the attention of the Court towards Service Tax dues and payable by the petitioner for the aforesaid period amounting to ₹ 93,85,591/-, learned counsel for the petitioner submitted that the payment of this Service Tax due and payable was paid only after 1st March 2013 between 21.3.2013 and 24.6.2013 and there was no prohibition for the payment of Ser vice Tax due and Payable as on 1.3.2013 after 1.3.2013, and there is no negative stipulation in the said VCES, 2013 that Service Tax due and payable for the said period could not be paid before 10.5.2013. 4. Mr. Sunil Prasad also relying upon the Division Bench judgment of Gujarat High Court in the case of SADGURU CONSTRUCTION CO . v. UNION OF INDIA [2014 (36 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner could not reject the Declaration solely on this ground. The Circular of CBEC, dated 8.8.2013 also does not contain any such stipulation, except requiring the adjudication of liability of interest or penalty, if any, but that was never undertaken by the respondent Authorities when the application/ declaration, filed by the present petitioner was being considered by the respondent-Assistant Commissioner, before rejecting the same. The clarification issued by CBEC that such adjudication can be made does not empower them to determine the same later on after rejecting the Declaration itself before hand. (ii) The Clarification obviously could not go beyond the terms of VCES, 2013 itself. The Scheme clearly stipulates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Provided further that where a notice or an order of determination has been issued to a person in respect of any period on any issue, no declaration shall be made of his tax dues on the same issue for any subsequent period. 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 97 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 101, a declaration made under sub-section (1) of section 97 shall become conclusive upon issuan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e definition of the expression tax dues if the same has not been paid as on 1.3.2013. 12. In the present case, admittedly the disputed amount of taxes were deposited by the petitioners with the department after 1.3.2013. However, the same having been deposited before 10.5.2013 that is the date on which the scheme was framed, the department contends that such amount cannot form part of the declaration under the Scheme. In our opinion, the contention ignores the statutory provisions contained in the Scheme of 2013. As we have noticed, the declaration can be made in terms of section 106 of tax dues. The term tax dues is defined in section 105(1)(e). If we accept the stand of the department that any tax which is deposited before ..... X X X X Extracts X X X X X X X X Extracts X X X X
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