VCES Scheme: Appealability of Designated Authority Orders & Pre-2013 Deposits Calculation

The Tribunal upheld the appealability of orders by the Designated Authority under the VCES Scheme, following the Punjab & Haryana High Court decision. It also affirmed the consideration of pre-10.05.2013 deposits for calculating the 50% deposit under the VCES Scheme, in line with decisions from various High Courts. The Revenue's appeal was rejected, and the Commissioner (Appeals) order was upheld, with the cross objection being disposed of.

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Issues:
1. Right of filing an appeal against the order of the designated authority under the VCES Scheme.
2. Consideration of deposits made before 10.05.2013 for the purpose of calculating the 50% deposit under the VCES Scheme.

Analysis:

*Issue 1: Right of filing an appeal against the order of the designated authority under the VCES Scheme*

The appeal in question was filed by the Revenue against the order passed by the Commissioner (Appeals) regarding the rejection of a declaration made under the Voluntary Compliance Encouragement Scheme (VCES). The primary contention raised was whether the orders passed by the Designated Authority under the VCES Scheme are appealable. The Revenue cited the decision of the Hon'ble Punjab & Haryana High Court in the case of Barnala Builders & Properties Consultants, which held that such orders are appealable. Despite the Revenue's argument, the Tribunal noted that there was no other decision contrary to the Punjab & Haryana High Court's ruling, and since there was no stay on that decision, the Tribunal could not find merit in the Revenue's contention. Therefore, the Tribunal upheld the appealability of orders passed by the Designated Authority under the VCES Scheme based on the Punjab & Haryana High Court decision.

*Issue 2: Consideration of deposits made before 10.05.2013 for the purpose of calculating the 50% deposit under the VCES Scheme*

The second issue revolved around whether deposits made by the assessee before 10.05.2013 should be taken into account for calculating the 50% deposit required under the VCES Scheme. The Commissioner (Appeals) had allowed the assessee's appeal, relying on the decision of the Hon'ble Gujarat High Court in the case of Satguru Construction Co. The Revenue argued that the facts of the present case were distinguishable from the Gujarat High Court decision as the deposits made by the assessee were voluntary, unlike the case in Gujarat where the deposits were made under duress. However, the Tribunal found that the issue was not only covered by the Gujarat High Court decision but also by decisions of the Karnataka High Court and Bombay High Court, which mandated the consideration of deposits made before 10.05.2013. Consequently, the Tribunal upheld the impugned order of the Commissioner (Appeals) and rejected the Revenue's appeal, along with disposing of the cross objection.

In conclusion, the Tribunal affirmed the appealability of orders passed by the Designated Authority under the VCES Scheme based on the Punjab & Haryana High Court decision and upheld the consideration of pre-10.05.2013 deposits for calculating the 50% deposit under the VCES Scheme in line with various High Court decisions.

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