9911796707
TMI Blog2023 (11) TMI 902X X X X Extracts X X X X X X X X Extracts X X X X ..... d on 31st December 2014 with interest. After payment of service tax in both occasions, the plaintiff has applied for reimbursement of the said amounts enclosing debits notes as documentary evidence but admittedly, the plaintiff has not submitted discharge certificate in both the occasions. The plaintiff has disclosed the discharge certificate in the writ proceedings. This Court finds that the plaintiff has paid service tax in two instalments and in both occasions, the plaintiff has applied for reimbursement of service tax by enclosing debit notes and has not submitted the original discharge certificate issued by the service tax department in Form VCES-3. Petition dismissed. - HON BLE JUSTICE KRISHNA RAO For the Plaintiff : Mr. Sabyasachi Choudhury Mr. Sayantan Bose Ms. Arpita Saha Ms. Ankita Choudhury. For the Defendant : Mr. Abhrajit Mitra, Sr. Adv. Mr. Ashok Kumar Jena. JUDGMENT KRISHNA RAO, J.: 1. The plaintiff has filed the instant suit claiming interest of Rs. 2,81,59,025/- along with pendente lite interest and interest on judgment at the rate of 18 % per annum. 2. Case of the plaintiff is as follows : a. In between the ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of balance amount was occurred due to the negligence on the part of the defendant as the defendant had not reimbursed the service tax paid by the plaintiff on 31st December, 2013. f. The plaintiff had applied for reimbursement of the service tax paid by the plaintiff along with debit notes. Instead of reimbursing of the service tax paid by the plaintiff, the defendant insisted the plaintiff for furnishing bank guarantee of the said amount and an indemnity bond cum undertaking for release of the said amount. g. Being aggrieved with the action of the defendant, the plaintiff has filed a writ application being W.P. No. 948 of 2016 for recalling/ withdrawal of the letters issued by the defendant to the plaintiff, insisting them for furnishing bank guarantee and indemnity bond. The writ petition filed by the plaintiff was disposed of by the Hon ble Court on 24th February, 2017, by directing the defendant to pay an amount of Rs. 3,94,34,035/- being the reimbursement amount of service tax within two weeks. The Hon ble Court directed the plaintiff to submit the original discharge certificate issued by the service tax department in Form VCES-3 to the defendant. As per the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s per the pleadings and suggested issues filed by the parties, the following issues were framed: 1. Is the plaintiff entitled to a decree for a sum of Rs. 2,81,59,025 as claimed? 2. Is the plaintiff entitled to interest and if so, at what rate? 3. Is the claim in the suit barred by the law of limitation? 4. To what other relief, if any, the plaintiff entitled to? 5. Evidence of the plaintiff: a. The plaintiff has examined one witness namely Dinesh Arya as P.W.1. During his evidence altogether 16 documents were marked as Exhibits A to P . b. Admitted documents of the defendant were also marked as Exhibit 1 to 7 . c. Though the Counsel for the defendant has cross examined the witness of the plaintiff but the defendant has not adduced any evidence on its behalf. 6. Decisions with reasons: a. All issues have taken up together for consideration. Clause 2.13 and 3.12 of the contract which are similar reads as follows: 2.13. The rate quoted by the bidders shall be inclusive of all Taxes and duties. However, Service Tax Educational Cess if applicable will be re-imbursed by KOPT at actuals on production of documentary eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reply dated 20.07.2016 has categorically pointed out that in terms of Rule 6(2) of the Service Tax Voluntary Compliance Encouragement Rules, 2013 CENVAT Credit cannot be utilized for payment of tax dues under the Scheme. Except this condition all issues relating to admissibility of CENVAT Credit are to be determined in terms of the provision of the CENVAT Credit Rules. (d) As regards admissibility of CENVAT Credit Rule 9(1)(bb) and Rule 9(1)(e) of CENVAT Credit Rules, 2004 is to be followed. (e) That in terms of Circular no. 176/2/2104-ST dated 12.01.2014 issued by CBEC clarifies that CENVAT Credit shall only to be available after payment of entire service tax dues with interest, if any and obtaining discharge certificate in Form of VCES-3 since the declaration made under the Scheme become conclusive only on issuance of discharge certificate under section 107(7) of the Finance Act, 2013 and acknowledge of which is obtained by the Petitioner. (f) That the respondent no. 1 is entitled to CENVAT Credit on the basis of supplementary invoices issued by the petitioner. The writ proceeding was disposed of on 9th December, 2016, wherein the following directions we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r VCES, under Section 108 (2) of the Finance Act, 2013, a declaration made under Section 107 (1) shall become conclusive only upon issuance of acknowledgement of discharge under Section 107 (7). Further, in terms of Rule 7 of the Service Tax VCES Rules 2013, the acknowledgement of discharge in form VCES-3 shall be issued within a period of 7 working days from the date of furnishing of details of payment of tax dues in full along with interest, if any, by the declarant. 3. It would be in the interest of VCES declarants to make payment of the entire service tax dues at the earliest and obtain the discharge certificate within 7 days of furnishing the details of payment. As already clarified in the answer to Question no. 22 on FAQs issued by CBEC dated 08.08.2013, eligibility of CENVAT credit would be governed by the CENVAT Credit Rules, 2004. 4. Chief Commissioners are also advised that upon payment of the tax dues in full, along with interest, if any, they should ensure that discharge certificates is issued promptly and not later than the stipulated period of seven days. The defendant has reimbursed the service tax paid by the plaintiff on 10th March, 2017, as per t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
