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2018 (7) TMI 861

rtificate under VCES scheme has been issued to them, the proceedings could have been initiated against them only in terms of Section 111 of the Finance Act, 2013 and not under Section 73 of the Finance Act, 1994. - Held that:- In terms of Section 111(3), it is a fact that any notice issued under the provisions of this section is deemed notice under Section 73 of the Finance Act, 1994. If that be so, this section does not bar initiation of the proceedings under Section 73 of the Finance Act vis-āvis the service tax short paid or not paid. The show cause notice issued under Section 73 cannot be faulted on this account - it may be seen that the investigations in the present case have been started on 8.1.2013 whereas the VCES scheme has com .....

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One Lakhs Sixty Four Thousand Six Hundred & Fifty Four only) as payable by M/s. Siddhi Property Developers Pvt. Ltd., under the provisions of Section 73(2) of the Finance Act, 1994. b) I order appropriation of Service Tax amount of ₹ 55,80,772/- paid by the assessee against the demand confirmed at (a) above. c) I order for recovery of interest at appropriate rate from the due date on which the Service Tax was payable till the date of payment on the amount detailed in para 14 above under the provisions of Section 75 of the Finance Act, 1994. d) I order for appropriation of interest of ₹ 15,35,354/- paid by the notice against the demand of interest in (c) above. e) I impose penalty of ₹ 81,64,644/- (Rupees Eighty One La .....

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eme. The appellant also paid an amount of ₹ 55,80,772/- being other payments (i.e. against service tax demand of ₹ 3,11,97,514/- ₹ 2,56,16,742/-) for which VCES certificate was issued). 3. Challenging the order of the Commissioner in appeal along with other grounds, the appellant has challenged the show cause notice issued to them under Section 73 of the Finance Act, 1994. The ground for challenge is since they have made the declaration under VCES scheme and also a certificate under VCES scheme has been issued to them, the proceedings could have been initiated against them only in terms of Section 111 of the Finance Act, 2013 and not under Section 73 of the Finance Act, 1994. 4. We have heard Shri Vasant Bhat, learned Char .....

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ement Scheme (VCES) has been announced in this year s budget. It has come into effect from 10.5.2013. The objective of this Scheme is to encourage disclosure of tax dues and compliance of service tax law by the persons who have not paid service tax dues for the period from Oc. 2007 to Dec. 2012, either on account of ignorance of law or otherwise. VCES is the opportunity for such persons to pay the tax dues and come clean. On payment of tax dues relating to the period under VCES, there will be a complete waiver of interest, penalty and other consequences. 4.2 In the present case, they have come forward and made the declaration under the provisions of the scheme and have also been issued a certificate by the Competent Authority towards the di .....

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this Scheme was substantially false, he may, for reasons to be recorded in writing, serve notice on the declarant in respect of such declaration requiring him to show cause why he should not pay the tax dues not paid or short-paid. (2) No action shall be taken under sub-section (1) after the expiry of one year from the date of declaration. (3) The show cause notice issued under sub-section (1) shall be deemed to have been issued under section 73, or as the case may be, under section 73A of the Chapter and the provisions of the Chapter shall accordingly apply. In terms of Section 111(3), it is a fact that any notice issued under the provisions of this section is deemed notice under Section 73 of the Finance Act, 1994. If that be so, this sec .....

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d accordingly. 9. From the construct of Section 106 to Section 111 of Finance Act, 2013, it is clear that when a declaration is made under the provisions of VCES, 2013, and where the service tax liability declared under VCES cannot be disputed by the department, either with reference to value or with reference to applicable tax rate, entitlement for abatement etc., and the declaration passes the text laid down under Section 106 & Section 111 of Finance Act, 2013 by being not substantially false; the declaration made need to be accepted and immunity granted. However, if the department intends to raise any additional demand, they can issue show cause notice for such additional demand in terms of Section 73 of Finance Act, 1994. Similar vi .....

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