9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (7) TMI 535 - AT - Service TaxRejection of declaration under VCES Scheme - rejection on the ground that the Appellant has failed to provide the proof of payment for the Service Tax liability under VCES Scheme - Held that - As is evident from the records, the Appellant has paid Service Tax as per VCES declaration in time. Therefore, VCES Declaration is accepted. The Appellant has filed declaration in terms of VCES Declaration Scheme, 2013 on 26.12.2013 by declaring the taxable services to the tune of ₹ 32,53,350/- on which the Service Tax liability works out to ₹ 4,02,114/-. 50% of the said amount has been paid by the Appellant on 30.12.2013 and remaining amount was paid on 17.2.2014 - The said amount is not the part of ST 3 returns as these amounts have not been paid for the services shown in ST3 return and the authorities below have not considered these amounts having been paid separately by the Appellant for the amount declared in VCES Scheme. If the same has been taken into consideration, their VCES Declaration would have been accepted. Admittedly, both the authorities below have not considered these facts, therefore, the impugned order deserves no merits. Appeal allowed.
Issues:
Appeal against rejection of declaration under VCES Scheme, 2013. Analysis: The appellant filed a declaration under the VCES Scheme, 2013 for the period October 2012 to December 2012. Initially, 50% of the Service Tax was paid by the appellant by 30.12.2013, and the remaining amount was paid on 17.02.2014. However, the payment was inadvertently shown in their ST 3 returns, leading the Revenue to reject the declaration. The appellant contended that the accountant's mistake led to the incorrect reporting in the ST 3 return. It was argued that if the VCES declaration amount was excluded from the ST 3 return, the tax liability would reduce accordingly, demonstrating compliance. The Revenue rejected the declaration without considering this crucial fact, prompting the appeal. Upon review, it was found that the appellant had indeed filed the declaration under the VCES Scheme, 2013 correctly. The taxable services were declared at ?32,53,350, with a Service Tax liability of ?4,02,114. The appellant made timely payments as per the VCES declaration, which were not part of the ST 3 returns. The authorities had failed to recognize these separate payments made by the appellant specifically for the VCES Scheme declaration. Had this been considered, the VCES declaration would have been accepted. Consequently, the impugned order was deemed to lack merit, and the rejection was set aside. The records clearly indicated that the appellant fulfilled the Service Tax payment obligations under the VCES Scheme, leading to the acceptance of the VCES Declaration. In conclusion, the appeal was allowed in favor of the appellant. The tribunal acknowledged the timely and correct payments made by the appellant in line with the VCES Scheme requirements. The decision highlighted the importance of considering all relevant facts and payments made outside the regular tax returns when evaluating declarations under special schemes like VCES.
|
