TaxTMI 
TaxTMI 
2023 (3) TMI 540
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....reafter, in the Budget for the financial year 2013-14, Voluntary Compliance Encouragement Scheme was introduced vide Chapter VI of the Finance Act, 2013. The appellant submitted a VCES declaration under section 107 of the Finance Act 2013 and made declaration of its service tax dues amounting to Rs. 7,22,89,051/- for the period 2007-08 to 2011-12. As per the condition of the VCES, 2013, the appellant deposited an amount of Rs. 3,61,44,524/- as service tax dues by 31.12.2013. In response to the appellant's VCES declaration, the designated authority issued a letter dated 9.1.2014 proposing to reject the application on the following grounds: (i) An Internal Audit Report was issued (ii) A SCN dated 19.10.2012 had been issued to the applicant for the same period as covered under the declaration, which was pending as on 1.3.2013. 3. The applicant filed his written submissions before the designated authority. Further, on 28.06.2014, the appellant paid the remaining 50% of the declared amount of service tax dues equivalent to Rs.3,61,44,527/- as per the provisions of the said scheme. The Designated Authority partially rejected the VCES declaration vide order dated 24.05.2016 stating....
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....CES notice dated 24.05.2016, and was liable to be set aside. 6. The learned Authorised Representative reiterated the submissions of the Commissioner (Appeals) and stated that the proviso to section 73 (4A) reads as under: "provided that Central Excise Officer may determine the amount of service tax, if any due from such person, which in his opinion remains to be paid by such person and shall proceed to recover such amount in the manner specified in subsection(1)." 6.1. He stated that such a determination is required only if the Central Excise Officer opines that some amount remained to be paid. Since the appellant had accepted the service tax liability worked out by the audit, there was no need for any further determination of the liability. Therefore, the claim of the appellant that in the absence of any order of determination, debarment from filing VCES declaration under proviso to section 106(1) was not applicable to them, is not logical. 7. We have carefully gone through the arguments of the learned counsel and the learned authorised representative. Before we take up the issue on merit, it is important to look at the legal provisions of the VCES, 2013:- "106. (1) Any pe....
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....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 declarant shall furnish to the designated authority details of payment made from time to time under this Scheme along with a copy of acknowledgement issued to him under sub-section (2). (7) On furnishing the details of full payment of declared tax dues and the interest, if any, payable under the proviso to sub-section (4), the designated authority shall issue an acknowledgement of discharge of such dues to the declarant in such form and in such manner as may be prescribed." "Immunity from penalty, interest and other proceeding. 108. (1) Notwithstanding anything containe....
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....ard it is informed that audit of your company has been done by this Commissionerate and IAR No. 174/10-11 dated 22.09.2010 has been to you. Further demand come show cause notice number 132/ST/GGN/2012-- 13 dated 19.10.2012 has also been issued for the period provided in the VCES scheme the same is pending as on 01. 03. 2013. 3. As per the provisions contained in section 106 of the Finance act, 2013 which provides a person who may make declaration of tax dues, as:- (1) Any person may declare his tax dues in respect of which no notice or in order of determination under section 72 or section 73 or section 73A of the chapter has been issued or made before the 1St day of March, 2013: Provided that any person who has furnished return under section 70 of the chapter and disclosed is true liability, but has not paid the disclosed amount of service tax or any part thereof, shall not be eligible to make declaration for the period covered by the said return: Provided further that where the notice or an order of determination has been issued to a person in respect of any. On any issue, no declaration shall be made of his tax dues on the same issue for any subsequent period. (2) ....
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....notice dated 19.10.2012 has been issued to the appellant alleging wrongful availment of CENVAT credit of Rs. 1,34,18,976/- on Medical Insurance Services provided to its employees for the period F.Y. 2007 - 08 to F.Y. 2011 - 12. This Notice was adjudicated in favour of the Appellant vide order dated 28.10.2016. A perusal of the list of services on which the appellant declared under the VCES does not include "Medical Insurance Services". As regards the second issue as well the VCES declaration indicates that appellant had declared nine other services on which they had chosen to pay the service tax dues under the VCES, 2013. So the argument that a notice on the said issues was pending as on 01.03.2013 is factually incorrect. We also take note of the clarification provided in the FAQs published by CBEC on the VCES. The same is reproduced below: "Q3: whether an assessee to whom show cause notice or order of determination has been issued can file declaration in respect of tax dues which are not covered by such SCN or order of determination? In terms of section 106(1) of the Finance act, 2013 and second proviso thereto, the tax dues in respect of which any show cause notice or order ....