VCES declaration barred by prior notice on the same material dispute; limitation challenge falls once ineligibility is established.

A VCES declaration is barred where a notice has already been issued on the same material dispute for the same period, because Section 106 permits declaration only when no prior notice or determination exists on the relevant dues. The expression "same issue" was treated as referring to the same substantive dispute, not merely the same category of service. On that basis, an earlier notice for renting of immovable property services covering the same alleged non-payment made the declaration ineligible. Once ineligibility under the Scheme was established, a limitation challenge to the show-cause notice could not be pursued separately.

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Issues: (i) whether a declaration under the Voluntary Compliance Encouragement Scheme was barred because a notice had already been issued on the same issue for the same period; (ii) whether the challenge to the show-cause notice on limitation could survive once the declaration was held to be ineligible.

Issue (i): whether a declaration under the Voluntary Compliance Encouragement Scheme was barred because a notice had already been issued on the same issue for the same period

Analysis: Section 106 of the Voluntary Compliance Encouragement Scheme permits declaration only where no notice or order of determination had already been issued on the relevant dues. The expression "same issue" was treated as referring to the same material dispute, not merely the same category of service. Since an earlier notice had already been issued for renting of immovable property services for the same period and for the same alleged non-payment, the statutory bar applied. Reference was made to the concept of distinct issues under Order XIV of the Code of Civil Procedure, 1908 to explain that an issue is formed by a material proposition of fact or law.

Conclusion: the declaration was ineligible and its rejection was in law, against the assessee and in favour of Revenue.

Issue (ii): whether the challenge to the show-cause notice on limitation could survive once the declaration was held to be ineligible

Analysis: The limitation objection depended on the assessee being entitled to invoke the Scheme. Once the declaration itself was found to be barred and invalid, there was no occasion to examine the limitation plea independently.

Conclusion: the limitation challenge did not succeed, against the assessee and in favour of Revenue.

Final Conclusion: the rejection of the VCES declaration was sustained and the appeal failed in entirety.

Ratio Decidendi: where an earlier notice has already been issued on the same material issue for the same period, a subsequent VCES declaration is barred by the statutory proviso, and ancillary limitation objections cannot be entertained once ineligibility under the Scheme is established.

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