2017 (9) TMI 454 - AT - Service Tax

Voluntary Compliance Entitlement Scheme (VCES) - VCES declaration filed by the appellant is liable to be rejected as they have not made full and true declaration - Held that - the SCN alleges that appellant had suppressed the value of the services rendered by them under the category of Renting of Immovable Property Services and Restaurant Services. The adjudicating authority in paragraph No. 20 and paragraph No. 23 has categorically recorded, how there is suppression value of the services rendered by the appellant had taken place, which is accepted as appellant has filed VCES declaration, though rejected by authority - it is noticed from the grounds of appeal appellant is not contesting the same by adducing any evidence to support his case and only tried to counter the findings by stating that they had filed VCES declaration - VCES declaration rightly rejected - appeal dismissed - decided against appellant.

Summary

Issues:
Appeal against Order-in-Original regarding service tax liability under Renting of Immovable Property Services and Restaurant Services.

Analysis:
The appeal was filed against an Order-in-Original dated 05.01.2016, where the appellant was charged with service tax liability under Renting of Immovable Property Services and Restaurant Services. The appellant claimed to have discharged the service tax liability under the Voluntary Compliance Encouragement Scheme (VCES) and provided details with the show cause notice. However, the adjudicating authority rejected the VCES declaration, leading to the appropriation of the service tax liability paid under VCES, along with interest and penalties. The appellant's grounds of appeal mainly focused on disputing the calculation of tax liability and emphasizing the correctness of the VCES declaration, stating they had paid the total service tax amount after obtaining a registration certificate.

Upon review, it was found that the appellant did not present any new grounds in the appeal but reiterated the correctness of the VCES declaration and challenged the tax liability calculation based on income tax returns. The appellate authority noted that the show cause notice accused the appellant of suppressing the value of services provided under Renting of Immovable Property Services and Restaurant Services. The adjudicating authority detailed the suppression of value and tax liability on Restaurant Services, granting 60% abatement. Despite the appellant's reliance on the VCES declaration, which was rejected, no additional evidence was presented to support their case.

The appellate authority upheld the impugned order, citing the lack of merit in the appeal. It emphasized that the adjudicating authority's findings on the suppression of value and tax liability, supported by detailed reasoning, were not effectively contested by the appellant. As the VCES declaration was deemed incorrect and rejected, the confirmation of demands, interest, and penalties by the adjudicating authority was deemed legally sound and appropriate.

Therefore, the appeal was dismissed, and the impugned order was upheld on 18/08/2017.