2021 (6) TMI 561 - HC - Service Tax

Benefit under VCES scheme denied - non-payment of minimum of 50% of the tax dues declared - HELD THAT - In the case of THE NARASIMHA MILLS PRIVATE LTD. VERSUS THE COMMISSIONER OF CENTRAL EXCISE (APPEALS) , THE ASSISTANT COMMISSIONER OF CENTRAL EXCISE 2015 (6) TMI 787 - MADRAS HIGH COURT , this Court held that an appeal under Section 85 of the Finance Act, 1994 is maintainable before the Commissioner of Service Tax and the aggrieved person is at liberty to prefer such an appeal. The mixed question of fact and law are to be decided by the Appellate Authority by affording an opportunity to the parties concerned. The petitioner is at liberty to prefer an appeal before the Commissioner of Service Tax by following the procedures and in the event of receiving any such appeal from the petitioner, the Appellate Authority is bound to consider the same on merits - Petition disposed off.

Summary

Issues:
Challenge to order rejecting revised declaration under VCES Scheme 2013.

Analysis:
The petitioner filed a writ challenging the order dated 09.09.2014 by the second respondent, who rejected the revised declaration filed by the petitioner on 01.01.2014 under the VCES Scheme 2013. The Original Authority ruled that the declarant did not pay the minimum 50% of the tax dues declared, hence not entitled to benefits under the scheme. The petitioner's counsel argued inadequate opportunities were given to establish their case, with various grounds disputed regarding declarations made and relied on by the respondents.

The High Court emphasized that disputed questions of facts should be adjudicated by the Appellate Authority, the Commissioner of Service Tax, as such examinations of documents and witnesses are beyond the scope of writ proceedings. Referring to a previous judgment, the Court highlighted that appeals under the Finance Act are maintainable before the Commissioner of Service Tax, where mixed questions of fact and law are decided after providing an opportunity to the concerned parties. The petitioner was advised to prefer an appeal considering the grounds raised to challenge the impugned order.

Citing a specific paragraph from a previous judgment, the Court clarified that the VCES Scheme 2013 is part of the Finance Act and subject to its provisions, making orders appealable under the Act. Consequently, the petitioner was granted liberty to appeal before the Commissioner of Service Tax, with the Appellate Authority mandated to consider the appeal on merits and in accordance with the law, ensuring a fair opportunity for the petitioner. The writ petition was disposed of with no costs awarded, and the connected miscellaneous petition was closed.