9911796707
TMI Blog2014 (11) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... ms of the said provision, which was part of the scheme known as the "Service Tax Voluntary Compliance Encouragement Scheme, 2013" a declarant [defined under Section 105(1)(b)] was given an opportunity to disclose Service Tax dues. Section 106 and 107 which are material for the purpose of the present case read as follows : "Person who may make declaration of tax dues. - 106. (1) Any person may declare his tax dues in respect of which no notice or an order of determination under Section 72 or Section 73 or Section 73A of the Chapter has been issued or made before the 1st day of March, 2013 : Provided that any person who has furnished return under Section 70 of the Chapter and disclosed his true liability, but has not paid the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as may be prescribed. (2) The designated authority shall acknowledge the declaration in such form and in such manner as may be prescribed. (3) The declarant shall, on or before the 31st day of December, 2013, pay not less than fifty per cent of the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority. (4) The tax dues or part thereof remaining to be paid after the payment made under subsection (3) shall be paid by the declarant on or before the 30th day of June, 2014 : Provided that where the declarant fails to pay said tax dues or part thereof on or before the said date, he shall pay the same on or before the 31st day of December, 2014 along with interest thereon, at s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accept 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. 5. It is contended by the petitioner that the omission to provide an express provision for extension of time for deposit of the initial 50% cannot be construed to its prejudice given the objectives of the encouragement scheme. It was contended that pre-deposit or for that matter timely pre-deposit is not central for the purpose of the scheme as is evident from Section 107(4) which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 107. The fact that the declaration regime required payment of 50% of the tax dues under Section 107, and at the same time allowed flexibility for payment of the balance of 50% in this Court's opinion would not be fatal to the working of the scheme. In fact the right of the assessee to claim the benefit of the scheme is dependent upon its depositing the initial 50%. The assessee's income from rendering of services was not brought to tax for some reason or the other, due to omission, either wilful or inadvertent; such assesses were given more than enough time to consider whether they would make a disclosure under the Scheme. Once such disclosure was made, the applicant or declarant was entitled to be considered only upon deposit of 50% by 31- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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