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TMI Blog2019 (11) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... hem at the requisite point of time. The fact that the duty was not paid at the time of import of service is indicative of a situation that the short levy or non levy has occurred on account of suppression of facts. Had the scheme not been floated by the Government of India, proceedings would have been initiated against the assessee by way of issuance of a show cause notice raising the demand in question and confirming the same alongwith interest and penalty. It is beyond doubt that the payment of duty on the invoices raised under VCES Scheme has to be held as payment by way of raising supplementary invoices, which was on account of misstatement or suppression with intent to evade payment of duty. In such a scenario, the Cenvat credit of ser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich were taxable under the Management Consultancy Services. Inasmuch as the foreign based company was not having any office in India the tax liability fell upon the appellant, who were liable to pay the same on reverse charge basis. However, the tax liability was not discharged by the appellant during the relevant time. 2. However, subsequently in terms of VCES Scheme floated by the Government of India, they filed a declaration in respect of the said tax liability to the tune of around ₹ 72,16,108/-. The said declarations were accepted by the proper officers and discharge certificate were issued by them in terms of the provisions of the said VCES Scheme. 3. Thereafter the appellant claimed the credit of the said duty paid by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oms clarifying that the tax amounts deposited in terms of VCES Schemes are available as Cenvat credit to the assessee. For the above proposition, he has drawn our attention to Serial No.18 of the said Circular. 6. For better appreciation of the relevant part of the said Circular, we reproduce the same as under:- Circular No.170/5/2013-ST [F.No.B1/19/2013-TRU(PT)] Serial No.18 Issues Clarification (a)Whether the tax dues amount paid under VCES would be eligible as CENVAT credit to the recipient of service under a supplementary invoice? (b)Whether Cenvat credit would be admissible to the person who pays tax dues under VCES as service recipient under reverse charge mechanism? Rule 6(2) of the Service Tax Voluntary Compliance Encou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orter of services and was under legal obligation to pay service tax on reverse charge basis. The said service tax was not paid by the appellant in the ordinary course of the business by raising invoice thereto. The fact is that the said payment was made in terms of VCES Scheme which is special piece of legislation allowing assessee's to pay tax or duty, which has not been paid by them at the requisite point of time. The fact that the duty was not paid at the time of import of service is indicative of a situation that the short levy or non levy has occurred on account of suppression of facts. Had the scheme not been floated by the Government of India, proceedings would have been initiated against the assessee by way of issuance of a show cau ..... X X X X Extracts X X X X X X X X Extracts X X X X
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