Appealability of Voluntary Compliance Scheme rejection orders confirmed where eligibility was adjudicated on merits.

An order rejecting a declaration under the Voluntary Compliance Encouragement Scheme was appealable because the Scheme formed part of the Finance Act, 2013 and was not a self-contained code. When the designated authority examined the declarant's eligibility on merits and passed a reasoned order, it acted as an adjudicating authority. That made the order amenable to the statutory appeal mechanism applicable to service tax matters. The Tribunal was therefore wrong in treating the appeal as not maintainable, and the matter was remitted for decision on merits in accordance with law.

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Issues: (i) Whether an appeal lay against an order rejecting a declaration under the Voluntary Compliance Encouragement Scheme.

Analysis: The Scheme formed part of the Finance Act, 2013 and was not a self-contained code. Once the designated authority applied its mind to the eligibility of the declarant and passed a reasoned order, the authority functioned as an adjudicating authority. In that situation, the order was amenable to appeal under the statutory appeal provision applicable to service tax matters.

Conclusion: The order rejecting the declaration was appealable, and the Tribunal was not right in treating the appeal as not maintainable.

Final Conclusion: The appeal succeeded to the extent that the impugned dismissal on maintainability was set aside and the matter was sent back for decision on merits in accordance with law.

Ratio Decidendi: An order passed by the designated authority under the voluntary compliance scheme, when rendered after adjudication of eligibility on merits, is an appealable adjudicatory order under the service tax appellate framework.

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