9911796707
TMI Blog2018 (7) TMI 1795X X X X Extracts X X X X X X X X Extracts X X X X ..... laring his tax dues under VCES he has to ensure that no notice nor any order of determination as under Section 72 or Section 73 or Section 73A of this Chapter has been issued or made qua may before 01.03.2013 - Section 106 (2) (iii) clarifies that whenever any party has been required for producing certain accounts, documents or other evidence under the chapter or rules made thereunder, the designated authority shall, by an Order and for the reasons to be recorded in writing, reject such declaration. In the present case, appellant had received several letters from the Department qua scrutiny of ST-3 returns. The letters as old as 26.09.2012, 05.12.2012, 09.10.2012 and 18.04.2013. Four of these being prior the cut off date of Section 106 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A, MEMBER (JUDICIAL) Present for the Appellant : Mr. Sudeep Vijayan, Advocate Present for the Respondent : Mr. S. Nunthuk P. Juneja, DR ORDER PER: RACHNA GUPTA Present is an Appeal against the Order of Commissioner(Appeals) bearing No. 77/ST/DLH/2017 dated 14/11/2017. 2. Factual matrix relevant for the purpose is that the appellants are engaged in providing Commercial Training and Coaching Services and are registered with the Service Tax Department. The Department after noticing certain discrepancies asked the appellants vide their letter dated 26.09.2012 and the subsequent reminders to provide the documents as that of ST-3 returns and balance sheets for the period 2010-11 and 2011-12 for manual scrutiny. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... between audit and returns scrutiny. Department was required to look into the procedure prescribed by the said manual but the Department has miserably failed while passing the Order under challenge. While submitting about merits, it is mentioned that the object of creation of ST returns was a risk assessment procedure and the VCES was introduced to extend the benefit to the assesse to come voluntarily to deposit the tax liability pending till that date. The Circular of 14.11.2017 is impressed upon vide which the Department was restricted to have a narrow interpretation of Section 106 Sub-section 2 of VCES Rules 2013. It is also impressed upon that the cut off date as per VCES for the purpose of Section 106 Sub-Section 2 was 01.03.2013 and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 disclosed amount of service tax or any part thereof, shall not be eligible to make declaration for 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 levied or short paid has been initiated by way of (i) search of prem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct i.e. 01.03.2013. Perusal of Show Cause Notice dated 17.04.2013 shows the recital about the queries/ scrutiny about the ST-3 returns of the appellants. Perusal of Show Cause Notice makes it abundantly clear that the same was issued due to the differences noticed from the scrutiny as was conducted under the aforesaid four letters. In the given circumstances, I am of the opinion that the Show Cause Notice despite being post dated 01.03.2013 but the inquiry in that respect had initiated much prior to the said cut off date, that too to the notice of the appellant. 7. Though the Ld. Counsel for the appellant has tried to distinguish between the audit and the returns scrutiny but perusal of Section 106 shows that such distinction is not at a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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