TMI Blog2019 (11) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... on levy has occurred on account of suppression of facts. Had the scheme not been floated by the Government of India, proceedings would have been initiated against the assessee by way of issuance of a show cause notice raising the demand in question and confirming the same alongwith interest and penalty. It is beyond doubt that the payment of duty on the invoices raised under VCES Scheme has to be held as payment by way of raising supplementary invoices, which was on account of misstatement or suppression with intent to evade payment of duty. In such a scenario, the Cenvat credit of service tax paid by the appellant would not be available to the appellant in terms of provisions of Rule 9(1)(b). The further fact of the service having no ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vices from foreign associated company, which were taxable under the Management Consultancy Services. Inasmuch as the foreign based company was not having any office in India the tax liability fell upon the appellant, who were liable to pay the same on reverse charge basis. However, the tax liability was not discharged by the appellant during the relevant time. 2. However, subsequently in terms of VCES Scheme floated by the Government of India, they filed a declaration in respect of the said tax liability to the tune of around ₹ 72,16,108/-. The said declarations were accepted by the proper officers and discharge certificate were issued by them in terms of the provisions of the said VCES Scheme. 3. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2013-ST [F.No.B1/19/2013-TRU(PT)] dated 08/08/2013 issued by the Central Board of Excise Customs clarifying that the tax amounts deposited in terms of VCES Schemes are available as Cenvat credit to the assessee. For the above proposition, he has drawn our attention to Serial No.18 of the said Circular. 6. For better appreciation of the relevant part of the said Circular, we reproduce the same as under:- Circular No.170/5/2013-ST [F.No.B1/19/2013-TRU(PT)] Serial No.18 Issues Clarification (a)Whether the tax dues amount paid under VCES would be eligible as CENVAT credit to the recipient ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t except where the additional amount of duty became recoverable from the manufacturer or importer on account of any non-levy or short-levy by reason of fraud, collusion or any willful misstatement or suppression of facts or contravention of any provisions or Rules with intent to evade payment of duty. Admittedly in the present case appellant is importer of services and was under legal obligation to pay service tax on reverse charge basis. The said service tax was not paid by the appellant in the ordinary course of the business by raising invoice thereto. The fact is that the said payment was made in terms of VCES Scheme which is special piece of legislation allowing assessee s to pay tax or duty, which has not been paid by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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