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TMI Blog2022 (12) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1994. 2) I order the recovery of interest from M/s. Uravi T & Wedge Lamps Pvt. Ltd. at the applicable rate of the service tax not paid/short paid under the provisions of Section 75 ibid. 3) I impose a penalty on M/s. Uravi T & Wedge Lamps Pvt. Ltd. of 1,94,437/- (Rupees One lakh ninety four thousand four hundred thirty seven only) under the provisions of Section 78 ibid. 4) I impose a penalty of Rs 10,000/- on M/s. Uravi T & Wedge Lamps Pvt. Ltd. under the provisions of Section 77(1a) ibid for their failure to obtain registration and thus for contravention of Section 69 of the Finance Act 1994 read with Rule 4 of the Service Tax Rules, 1994. 5) I impose a penalty each of Rs 10,000/- on M/s. Uravi T & Wedge Lamps Pvt. Ltd. under the provisions of Section 77(2) ibid for their failure to file ST-3 Returns and to properly quantify the value of the services rendered by them. 6) I order the payment of applicable late fees i.e Rs 20000/ for each return not filed by them for the period half year ending March 2009 to half year ending March 2013 within the period prescribed by law." 2.1 Appellant is manufacturing excisable goods and is availing services of transport agency serv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Service tax Rules, 1994; (g) Penalty under Section 78 of the Finance Act, 1994 should not be imposed on them for non-payment of Service Tax by suppressing the fact from the department with intent to evade payment of Service Tax." 2.4 The show cause notice was adjudicated as per the impugned order referred in para 1 and appeal filed by the appellant in the matter was dismissed by the Commissioner (Appeals) as per the impugned order. Hence this appeal. 3.1 I have heard Shri Stebin Mathew, Advocate for the appellant and Shri Sunil Kumar Katiyar, Assistant Commissioner, Authorised Representative for the Revenue. 3.2 Arguing for the appellant, learned counsel submits that:- * Government of India came up with VCES scheme in 2013 and they filed a declaration in January 2014 for the period April 2008 to December 2012 under VCES-1 to the concerned authority declaring service tax liability amounting to Rs.1,78,163/-. Their VCES-1 was duly acknowledged and accepted by the department and VCES-2 was issued to them. Thereafter they made the payment of the admitted tax liability as per challan dated 25.01.2014. They also intimated the facts about making the payment to the department. Howe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ledgement in form VCES-2, 3) The declarant had to pay the declared liability by specified periods 4) On fill payment of taxes, the designated authority was to issue acknowledgement of discharge in VCES-3. 5) Certain categories of assessees were deemed to be noneligible for this scheme. 6) The benefits of the scheme were-no interest, no penalty, no future legal proceedings and no prosecution. 7) Period subsequent to 31.12.2012 would not be covered under the scheme Now, in view of the above, the period for which the demand has been raised can be further divided into two periods viz. 1) From Oct 2008 to Dec 2012. This period is covered under the VCES scheme. 2) Jan 2013 to Mar 2013.This period is beyond the VCES scheme. Persons not eligible for the scheme I. Person cannot make declaration of tax dues for which a) SCN (u/s 73 or 73A) b) Order (u/s 72, 73, 73A) issued or made before 01-03-2013. (Section 106(1)] II. A person who has filed return, declared his true tax liability but not paid [106(1) proviso] If a SCN or order has been issued on any issue (say taxability or valuation), declaration cannot be filed on same issue for subsequent period [106 (1) pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een registered nor been assessed to, it is definitely open to the department to require the assessee to pay the service tax and the penalty payable for providing such service. The rigour of such taxing statute cannot be whittled down by the appellant by seeking to invoke so called voluntary compliance that too after the fact that the service has not been registered or has not been taxed was discovered by the department. 18. We therefore concur with the view of the learned Single Judge and we see no merits in this appeal. The appeal is therefore dismissed, confirming the order of the learned Single Judge." 12. It appears that this was done with malafide intention to evade service tax thus they failed to discharge their correct service tax liability under the provisions of the Finance Act, 1994 at the appropriate time and the fact was revealed only after initiation of the audited records by the department. From this act, this is evident that if the audit was not initiated, the facts of evasion of service tax would not have been detected and appellant would have continued to evade service tax secretively and suppressed the material facts, therefore, service tax not paid is recover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the declaration in such form and in such manner as may be prescribed. (3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent. of the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority. (4) The tax dues or part thereof remaining to be paid after the payment made under sub-section (3) shall be paid by the declarant on or before the 30th day of June, 2014 : Provided that where the declarant fails to pay said tax dues or part thereof on or before the said date, he shall pay the same on or before the 31st day of December, 2014 along with interest thereon, at such rate as is fixed under section 75 or, as the case may be, section 73B of the Chapter for the period of delay starting from the 1st day of July, 2014. (5) Notwithstanding anything contained in sub-section (3) and sub-section (4), any service tax which becomes due or payable by the declarant for the month of January, 2013 and subsequent months shall be paid by him in accordance with the provisions of the Chapter and accordingly, interest for delay in payment thereof, shall also be payable under the Chapter. (6) The decl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The scheme has provided itself contents and has been explained by the Board in terms of various circulars issued. Once a declarant files a declaration admitting the tax liability for the period upto December 2012 in Form VCES-1, Revenue has to issue the acknowledgment in VCES-2 or reject the same by issuing a notice to the declarant. If no such rejection is done, the declarant proceeds to make the payment of the declared liability and intimates to the concerned designated authority who issues the final discharge certificate in Form VCES-3. In the present case it is not even the case of the Revenue that VCES declaration filed by the appellant has been rejected or even a notice for such rejection has been issued. It is settled law that the notice for rejection of the declaration has to be issued within thirty days as per Board Circular No 174/9/2013-ST as has been held in the following decisions. * V S Enterprises [2017 (52) S.T.R. 151 (Tri. - Mumbai)] * Raj Infrastructure [2020 (34) G.S.T.L. 223 (Tri. - Mumbai)] * Siddhi Vinayaka Enterprises Pvt Ltd [2016 (43) STR 474 (T-Del)] The reliance placed on the decision of Hon'ble Madras High Court in the impugned order, is totally m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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