9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (9) TMI 1024 - AT - Service TaxRejection of VCES declaration - power to reject the said claim - It is the primary contention of the Ld. Consultant for the assessee that in terms of Section 106 ibid, the designated authority has no power to reject the declaration since according to him, it is the Commissioner of Central Excise alone who can do so. HELD THAT - On a plain reading of the clarification issued by the CBEC Board vide Circular No. 174/9/2013-ST dated 25.11.2013, it is clear that any Show Cause Notice proposing to reject the VCES declaration has to be invariably issued within 30 days of filing the application/declaration. In the case on hand, the Show Cause Notice refers to the declaration in form VCES-1 of the appellant filed on 31.12.2013 and the Show Cause Notice is dated 31.01.2014. When the Board has clarified that such Show Cause Notice should be issued within 30 days, it may perhaps be even that a Show Cause Notice, if issued on the 30th day, could be bad. But anyway, the Notice is clearly after 30 days in the case on hand. This, in my humble opinion, goes to the very root of the issue whereby the whole proceedings will invariably have to be held to be ab initio void. Therefore, the Show Cause Notice cannot be sustained. The rejection by the designated authority as upheld by the Commissioner (Appeals) cannot be sustained - appeal allowed.
Issues:
- Rejection of declaration in form VCES-1 under the Finance Act, 2013 - Authority of the designated authority to reject the declaration - Timeliness of the Show Cause Notice in relation to the declaration - Validity of the rejection by the designated authority and the Commissioner (Appeals) Analysis: The judgment pertains to the rejection of a declaration filed under the Finance Act, 2013. The appellant filed a declaration in form VCES-1 covering a specific period, which was subsequently rejected by the designated authority. The primary contention raised was regarding the authority of the designated authority to reject the declaration, with the appellant arguing that only the Commissioner of Central Excise has the power to do so. The key issue examined was the timeliness of the Show Cause Notice in relation to the filing of the declaration. The Circular issued by the CBEC Board specified that any Show Cause Notice proposing rejection must be issued within 30 days of filing the application. In this case, the Show Cause Notice was dated after the 30-day period, leading to a fundamental flaw in the proceedings. The judgment highlighted that the delayed issuance of the Notice rendered the entire process void ab initio, thereby making the rejection unsustainable. The analysis referred to relevant case laws, including M/s. Shreyans Builders Vs. C.S.T., Chennai-I, M/s. Siddhi Vinayaka Enterprises Pvt. Ltd. Vs. C.S.T., Raipur, and C.S.T., Ahmedabad Vs. M/s. Sorath Builders, which supported the view that the rejection based on delayed Show Cause Notice issuance was untenable. The judgment concluded that the rejection by the designated authority, upheld by the Commissioner (Appeals), could not be sustained. Consequently, the rejection was set aside, and the appellant's appeal was allowed with any consequential benefits as per the law. The detailed analysis provided a thorough examination of the issues raised, focusing on the procedural irregularities and legal precedents that influenced the decision to overturn the rejection of the appellant's declaration.
|
