9911796707
TMI Blog2022 (7) TMI 1118X X X X Extracts X X X X X X X X Extracts X X X X ..... r the period April 2016 to September 2016, October 2016 to March 2017, April 2017 to June 2017. The GST Commissionerate carried out audit of records of petitioner. During the course of audit, petitioner was informed about outstanding service tax liability in respect of the returns filed and petitioner was asked to pay the same alongwith interest. Petitioner accordingly paid the defaulted service tax amount. The total amount of service tax paid was Rs.80,97,268/-. Petitioner informed the Audit Officers about this payment vide its letter dated 18th March 2019. Petitioner also informed that out of total interest of Rs.27,50,463/-, petitioner had already paid Rs.19,53,530/and the balance amount of Rs.7,96,933/- will be paid in two installments of Rs.4,00,000/- and Rs.3,96,933/- on 23rd March 2018 and 29th March 2019, respectively. 4. Thereafter, petitioner received another letter dated 10th April 2019 from the authorities in response to petitioner's letter dated 18th March 2019 informing petitioner that payment of service tax during the period from October 2015 to March 2017 was also delayed and the interest has not been paid. Petitioner was directed to pay interest and report complia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as on the 30th day of June, 2019, and if the amount of duty is,- (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues; (b) where the tax dues are relatable to a show cause notice for late fee or penalty only, and the amount of duty in the said notice has been paid or is nil, then, the entire amount of late fee or penalty; (c) where the tax dues are relatable to an amount in arrears and, - (i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent. of the tax dues; (iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is,- (A) rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (B) amount indicated is more than rupees fifty lakhs, then, forty per cent. of the tax dues; (d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of June, 2019 is- (i) r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944. 8. Under Section 125 (1) all persons shall be eligible to make a declaration except those mentioned therein. Mr. Deshmukh submitted that petitioner would fall under Clause (e) as ineligible person because in petitioner's case there was audit and the amount of duty involved in the audit had not been quantified on or before 30th June 2019. Mr. Deshmukh relied upon rejection letter impugned in the petition where it is stated that the final audit report was issued on 16th July 2019 and since that was after cut off date of 30th June 2019, petitioner became ineligible to be a declarant. Mr. Deshmukh at the same time in fairness agreed that to be ineligible under clause (e) of Section 125 twin conditions have to be met, i.e., (a) declarant should have been subjected to audit; and (b) the amount of duty involved in the audit has not been quantified on or before 30th day of June 2019. Even if one of the conditions are not met, the ineligibility would not kick in. 9. We have to now examine whether these twin conditions have been met. To answer this, we will also have to consider a Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... course of audit & scrutiny of ST-3 returns, it was observed that the assessee has paid the Service Tax after due date. The assessee was requested to pay the interest in terms of Section 75 of Finance Act, 1994. .......... Revenue involved Rs.35,30,198 (Interest) Taxpayer's Agreement /Reasons for Disagreement : The assessee has agreed to pay the interest amount and requested for one week time. Further, they have requested to close the matter since the non payment of interest was not intentional. Decision of MCM : Para accepted. Pursue for the recovery or else SCN shall be issued. Vide letter dated 06.09.2019 the assessee has informed that they would like to apply for the relief as per the provisions of the proposed Dispute Resolution Scheme 'Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019' which has been announced as part of Finance (No.2) Bill, 2019 on 5th July 2019. Audit Objection Code No. ST-CSR073 Audit Para 2 : Late fee for delay in filing of ST-3 Returns : It was observed that assessee has delayed in filing of ST-3 returns. The assessee was requested to pay late fees. .......... Revenue involved : Rs.41,500 (Late fee) Taxpayer's Agreement/Reasons f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has made short/delayed payment of Service Tax. Assessee was requested to pay Service Tax alongwith interest for delayed payment of Service Tax. The detail is as under : .......... Revenue involved : ST Rs.49,440 + Interest Taxpayer's Agreement/Reasons for Disagreement : The assessee is agree to pay Service Tax amount and interest and requested for one week time for payment. They have requested to not issue any SCN and close the matter since non/short payment of Service Tax was not intentional. Decision of MCM : Para accepted. Pursue for the recovery or else SCN shall be issued. Action Taken : Assessee has paid the Service Tax amount of Rs.49,440/- vide CTIN No. 1907021700 dated 09.08.2019. However, Vide letter dated 06.09.2019 the assessee has informed that they would like to apply for the relief as per the provisions of the proposed Dispute Resolution Scheme 'Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019' which has been announced as part of Finance (No.2) Bill, 2019 on 5th July 2019. (emphasis supplied) 12. Therefore, as could be seen from the four audit objections mentioned above, the declarant has admitted the duty liability under each ..... X X X X Extracts X X X X X X X X Extracts X X X X
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