Service provider's appeal dismissed due to late filing; later withdrawn for Amnesty Scheme

The appellant, a service provider, filed a declaration under the Voluntary Compliance Encouragement Scheme for service tax liability but was rejected for filing after the due date. Subsequently, a demand for service tax, interest, and penalty was issued. Appeals to various authorities were dismissed, leading to a final appellate order affirming the demand. The appellant sought to quash this order but later requested to withdraw the appeal to benefit from an Amnesty Scheme, which was granted. The appeal was dismissed as withdrawn with liberty as prayed for.

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Issues: Appeal against demand of service tax under Voluntary Compliance Encouragement Scheme, rejection of VCES application, dismissal of appeals by various authorities, quashing of Final Appellate Order, permission to withdraw appeal for Amnesty Scheme.

Analysis:
1. The appellant, a proprietorship concern registered as a Service Provider with the Service Tax Department, was a distributor of a telecom company providing "Business Auxiliary Services." The appellant filed a declaration under the Voluntary Compliance Encouragement Scheme for service tax liability of Rs. 8,77,082 up to 31.12.2012. However, the declaration was rejected for being filed after the due date of 31.12.2013. Subsequently, a show cause notice was issued for the demand of service tax, interest, and penalty for the period April 2008 to December 2012. The Central Excise & Service Tax Commissionerate demanded the service tax along with interest and imposed a penalty.

2. Aggrieved by the Order-in-Original dated 31.05.2016, the appellant filed an appeal before the Commissioner of Central Excise Appeals-II, Delhi, which was dismissed, affirming the original order. Further, an appeal was filed before the Customs, Excise and Service Tax Appellate Tribunal, Chandigarh, which also affirmed the demand in question along with interest and penalty. The present appeal sought to quash the Final Appellate Order dated 29.06.2017.

3. During the hearing, the appellant's counsel requested permission to withdraw the present appeal to avail the benefit of an Amnesty Scheme introduced by the Ministry of Finance on 01.09.2019. The request was granted, and the appeal was dismissed as withdrawn with liberty as prayed for.

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