Home Case Index All Cases Service Tax Service Tax + AT Service Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 1127 - AT - Service TaxVoluntary Compliance Entitlement Scheme - deposit made prior to enactment of VCES scheme - deposit of service tax made between 25.03.2013 and 03.05.2013 - whether the service tax amount of ₹ 22,81,984/- deposited prior to coming into effect of VCES-2013 Scheme is eligible under the same? - Held that - reliance placed in the case of Sadguru Construction Co. & 1 Versus Union of India & 2 2014 (5) TMI 219 - GUJARAT HIGH COURT , where it was held that if any service tax is due and payable by a person for the aforesaid period, the same would be included in the definition of the expression tax dues if the same has not been paid as on 1.3.2013 - payments made after 01.03.2013 and before 10.05.2013 had been considered to be eligible under the VCES-2013 Scheme - appeal allowed - decided in favor of appellant.
Issues Involved:
Determining eligibility of service tax amount deposited before the VCES-2013 Scheme came into effect under the scheme. Analysis: The main issue in this case was whether the service tax amount of ?22,81,984/- deposited prior to the implementation of the VCES-2013 Scheme was eligible under the scheme. The appellant argued that the amount should be considered eligible based on a precedent set by the Hon'ble Gujarat High Court in a previous case. The appellant disclosed a total service tax payable amount of ?46,15,482/- under the VCES-2013 Scheme, with the department accepting payments made after 13.05.2013 but not accepting the deposit made between 25.03.2013 and 03.05.2013. The Hon'ble Gujarat High Court's analysis of the VCES-2013 Scheme was crucial in this judgment. The Court emphasized that the statutory provisions of the scheme needed to be considered. The Court highlighted that the declaration under the scheme could include taxes deposited between 1-3-2013 and 10-5-2013, as long as they were not paid before 1-3-2013. The Court rejected the department's contention that taxes deposited before the scheme's framing date could not be part of the declaration, stating that such an interpretation would distort the definition of "tax dues" in the scheme. Additionally, the Court addressed a clarification issued by C.B.E. & C. in a circular, emphasizing that a circular cannot override statutory provisions. The Court held that the scheme allowed individuals to declare their tax dues, even if the amount was deposited before 10-5-2013, as long as it was done after 1-3-2013. The Court's interpretation of the scheme's provisions led to the conclusion that payments made after 01.03.2013 and before 10.05.2013 were indeed eligible under the VCES-2013 Scheme. In light of the above analysis and the precedent set by the Hon'ble Gujarat High Court, the impugned order was set aside, and the appeal was allowed with any consequential relief as per the law. The judgment provides clarity on the eligibility of service tax amounts deposited before the VCES-2013 Scheme's implementation, emphasizing the importance of statutory provisions and the scheme's defined conditions for declarations.
|