Mandatory initial deposit under the compliance scheme cannot be extended, and declarations cannot be amended contrary to statutory .

The Service Tax Voluntary Compliance Encouragement Scheme, 2013 operated as a self-contained code, requiring a declarant to deposit at least 50% of the declared tax dues by 31 December 2013 as a mandatory condition for availing the Scheme. The Court held that the authorities had no discretion to extend time for that initial payment, and the limited power to remove difficulties could not be used to alter the statutory scheme. It also held that a declaration could not be amended to delete an amount already included where such amendment conflicted with the Scheme. The petition was dismissed in favour of Revenue.

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Issues: Whether the initial payment of 50% of the declared tax dues under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 was mandatory, and whether the declaration could be amended to exclude an amount already included in it.

Analysis: The Scheme was held to be a self-contained code intended to encourage voluntary disclosure of service tax dues within the time framework prescribed by Sections 106 and 107 of the Finance Act, 1994. The declarant was required to make the initial deposit of not less than 50% of the tax dues by 31 December 2013 as a condition for availing the Scheme, while the balance could be paid later within the period allowed by the provision. The Court held that the Scheme did not confer any discretion on the authorities to extend the time for the initial deposit and that the limited power to remove difficulties could not be used to alter the statutory conditions. The plea to delete the amount already included in the declaration was therefore inconsistent with the Scheme.

Conclusion: The initial 50% deposit requirement was mandatory, and the declaration could not be amended as sought. The petition failed and was dismissed in favour of Revenue.

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