Strict compliance under an amnesty scheme and independent review of Section 110 required for delayed tax dues

Delayed payment of the balance tax dues under the Voluntary Encouragement & Compliance Scheme, 2013 could not satisfy the scheme's strict time limit, as the measure was an amnesty requiring exact compliance. However, Section 110 was a separate provision addressing failure to pay declared dues and recovery under Section 87, and it had to be examined independently rather than treated jointly with Section 107(4). The matter was remanded for fresh consideration of Section 110's standalone applicability, and the challenge succeeded to that limited extent.

---

---

Issues: Whether rejection of the declaration under the Voluntary Encouragement & Compliance Scheme, 2013 for delayed payment of the balance tax dues was sustainable, and whether the applicability of Section 110 required independent examination.

Analysis: The balance amount under the scheme was admittedly paid beyond the prescribed date. The scheme, being an amnesty measure, required strict compliance with the time limit. However, Section 110 was a separate provision dealing with failure to pay declared dues and providing for recovery under Section 87. The lower appellate authority treated Section 107(4) and Section 110 conjointly, but Section 110 operates independently and its applicability had not been examined on its own merits.

Conclusion: The rejection was not finally upheld on this reasoning. The matter was remanded for fresh consideration of the independent applicability of Section 110, and the appeal succeeded to that extent.

---