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2019 (5) TMI 153 - AT - Service TaxVCES Scheme - Jurisdiction - assessees right of filing an appeal against the order of the designated authority in respect of an order passed by him under the VCES Scheme - HELD THAT - There is Punjab Haryana High Court decision in the case of M/S BARNALA BUILDERS PROPERTY CONSULTANTS, VERSUS THE DEPUTY COMMISSIONER OF CENTRAL EXCISE SERVICE TAX, DERA BASSI DIVISION, DERA BASSI AND OTHERS. 2013 (12) TMI 568 - PUNJAB AND HARYANA HIGH COURT laying down the the said order are appealable - In the absence of any other decision to the contrary and there being no stay of the said decision of the Hon ble High court, we are unable to find favour with the Revenue s contention. VCES - requirement of 50% of the disclosed income to be deposited at the time of filing of declaration - assessee has voluntarily deposited the said amount prior to 10.05.2013 - HELD THAT -The issue is covered by not only Hon ble Gujarat High Court in SADGURU CONSTRUCTION CO. 1 VERSUS UNION OF INDIA 2 2014 (5) TMI 219 - GUJARAT HIGH COURT but also by the Hon ble Karnataka High Court in PREMIER ASSOCIATES VERSUS THE ASSISTANT COMMISSIONER OF SERVICE TAX 2018 (2) TMI 408 - KARNATAKA HIGH COURT and Hon ble Bombay High Court in DR. YESHWANT DHUME, VERSUS ASSISTANT COMMISSIONER SERVICE TAX, DESIGNATED AUTHORITY VCES CELL, 2018 (12) TMI 1042 - BOMBAY HIGH COURT laying down that the deposits made before 10.05.2013 are required to be taken into consideration. Appeal dismissed - decided against Revenue.
Issues:
1. Right of filing an appeal against the order of the designated authority under the VCES Scheme. 2. Consideration of deposits made before 10.05.2013 for the purpose of calculating the 50% deposit under the VCES Scheme. Analysis: *Issue 1: Right of filing an appeal against the order of the designated authority under the VCES Scheme* The appeal in question was filed by the Revenue against the order passed by the Commissioner (Appeals) regarding the rejection of a declaration made under the Voluntary Compliance Encouragement Scheme (VCES). The primary contention raised was whether the orders passed by the Designated Authority under the VCES Scheme are appealable. The Revenue cited the decision of the Hon'ble Punjab & Haryana High Court in the case of Barnala Builders & Properties Consultants, which held that such orders are appealable. Despite the Revenue's argument, the Tribunal noted that there was no other decision contrary to the Punjab & Haryana High Court's ruling, and since there was no stay on that decision, the Tribunal could not find merit in the Revenue's contention. Therefore, the Tribunal upheld the appealability of orders passed by the Designated Authority under the VCES Scheme based on the Punjab & Haryana High Court decision. *Issue 2: Consideration of deposits made before 10.05.2013 for the purpose of calculating the 50% deposit under the VCES Scheme* The second issue revolved around whether deposits made by the assessee before 10.05.2013 should be taken into account for calculating the 50% deposit required under the VCES Scheme. The Commissioner (Appeals) had allowed the assessee's appeal, relying on the decision of the Hon'ble Gujarat High Court in the case of Satguru Construction Co. The Revenue argued that the facts of the present case were distinguishable from the Gujarat High Court decision as the deposits made by the assessee were voluntary, unlike the case in Gujarat where the deposits were made under duress. However, the Tribunal found that the issue was not only covered by the Gujarat High Court decision but also by decisions of the Karnataka High Court and Bombay High Court, which mandated the consideration of deposits made before 10.05.2013. Consequently, the Tribunal upheld the impugned order of the Commissioner (Appeals) and rejected the Revenue's appeal, along with disposing of the cross objection. In conclusion, the Tribunal affirmed the appealability of orders passed by the Designated Authority under the VCES Scheme based on the Punjab & Haryana High Court decision and upheld the consideration of pre-10.05.2013 deposits for calculating the 50% deposit under the VCES Scheme in line with various High Court decisions.
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