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TMI Blog2014 (11) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... cept the declaration, taking the position that the credit claimed in respect of the earlier sum paid up to 18-3-2013 was based upon a wrong understanding of the provisions relating to the scheme. The tax authorities also held, consequently, that in the absence of 50% deposit under Section 107(3) the application could not be entertained and proceeded with. Held that:- The authorities have not been given any discretion in the matter of grant of extension of time to make initial pre-deposit of 50% of the declared amount. In fact, the consequences are spelt out for failure to pay the tax dues under Section 110. In these circumstances the claim in the petition for a direction to extend the period or alternatively for deleting the sum of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the period covered by the said return : Provided further that where a notice or an order of determination has been issued to a person in respect of any period on any issue, no declaration shall be made of his tax dues on the same issue for any subsequent period. (2) Where a declaration has been made by a person against whom,- (a) an inquiry or Investigation in respect of a Service Tax not levied or not paid or short-loved or short-paid has been initiated by way of - (i) search of premises under Section 82 of the Chapter; or (ii) issuance of summons under Section 14 of the Central Excise Act, 1944, as made applicable to the Chapter under section 83 thereof; or (iii) requiring production of accounts, documen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tained in sub-section (3) and sub-section (4), any service tax which becomes due or payable by the declarant for the month of January, 2013 and subsequent months shall be paid by him in accordance with the provisions of the Chapter and accordingly, interest for delay in payment thereof, shall also be payable under the Chapter. (6) The declarant shall furnish to the designated authority details of payment made from time to time under this Scheme along with a copy of acknowledgement issued to him under subsection (2). (7) On furnishing the details of full payment of declared tax dues and the interest, if any, payable under the proviso to sub-section (4), the designated authority shall issue an acknowledgement of discharge of such dues t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cluding ₹ 81,35,729/- as part of the declaration should be permitted to be rectified and that the declaration should be so read or construed as having been amended to exclude a reference to that amount. 6. The object of the Service Tax Voluntary Compliance Encouragement Scheme, 2013 appears to the net escaped tax liability by service providers who are otherwise either in default or have not been assessed. It was to afford them a window of opportunity to voluntarily disclose their liability. In a sense it is similar to a permanent mechanism as the Settlement Commission or a voluntary disclosure scheme which the Central Government put in place in different tax regimes. Self contained nature of the scheme is evident from the definit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permit any such division. The only relief available is by way of power to remove difficulties conferred upon the Central Government. We also notice that the authorities have not been given any discretion in the matter of grant of extension of time to make initial pre-deposit of 50% of the declared amount. In fact, the consequences are spelt out for failure to pay the tax dues under Section 110. In these circumstances the claim in the petition for a direction to extend the period or alternatively for deleting the sum of ₹ 81 lakhs from the declaration already filed cannot be granted. 7. This Court clarifies that no opinion has been expressed on any other provision of the Act, in the event of issue of show cause notice or initiation ..... X X X X Extracts X X X X X X X X Extracts X X X X
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