Strict compliance with voluntary tax scheme deadlines bars relief and preserves revenue action under the parent fiscal law.

A declarant under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 had to pay at least fifty per cent of the declared dues within the prescribed time and furnish proof to the designated authority to obtain the scheme's benefits. The Calcutta High Court held that this time-bound payment condition was mandatory and could not be enlarged by judicial order. Because the declarants failed to make the requisite timely payment, they were excluded from the scheme, their claim for adjustment against income tax refund was rejected, and the revenue was entitled to proceed under the Finance Act, 1994.

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Issues: Whether a declarant who failed to pay at least fifty per cent of the declared service tax dues within the prescribed time under the Service Tax Voluntary Compliance Encouragement Scheme, 2013 was entitled to the benefits of the scheme, including adjustment of liability against income tax refund, and whether the revenue could proceed under the Finance Act, 1994.

Analysis: The scheme required a declarant to pay not less than fifty per cent of the declared tax dues by the stipulated date and submit proof of payment to the designated authority. The statutory framework treated timely payment as the condition for availing the scheme's benefits, and the court held that the prescribed time frame could not be enlarged by judicial order. Since the declarants had not made the requisite payment within time, they did not come within the scheme and were not entitled to claim its benefits. The rejection of their request for adjustment against income tax refund was upheld, and the revenue was held entitled to initiate action for non-compliance under the relevant provisions of the Finance Act, 1994.

Conclusion: The declarants were not eligible for relief under the scheme, and the revenue's action was sustained. The appeal was allowed and the writ petition was dismissed.

Ratio Decidendi: Eligibility under a statutory compliance scheme depends on strict adherence to the time-bound payment conditions prescribed by the scheme, and failure to satisfy those conditions disentitles the declarant from its benefits while preserving the authority's power to proceed under the parent fiscal statute.

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