SUMMONS U/S 14

[S.C. WADHWA]

Dear Expert,

We have fully complied with the VCES after depositing 2nd installment with interest on 5.12.2014 but could not get FORM VCES-3 ACKNOWLEDGEMENT OF DISCHARGE even after making so many efforts. All the time their reply was ' We will call you to collect the form 'but that day will never come. Now today we have received summons u/s 14 to appear on 14.5.15 with five years record.

Now my query is whether we should submit the details required for the last five years or take any other steps by seeking advise of legal advisor. Please give your valuable opinion immediately.

Regards,

WADHWA

[Rajagopalan Ranganathan]

Sir,

Under Section 98 (2) of Finance Act, 2013 once FORM VCES-3 ACKNOWLEDGEMENT OF DISCHARGE is issued by AC/DC under Section 107 (7) no matter can be reopened thereafter. However, Principal commissioner/Commissioner can reopen the matter under Section 111 (1) of Finance Act, 2013. When summons are issued under Section 14, the department is duty bound to disclose the grounds under which such summons are issued. A copy of the order passed by Principal Commissioner/Commissioner shall accompany the summons. Principles of natural justice requires such disclosure by the department. You can require the department to furnish a copy of the order passed by Principal Commissioner/Commissioner and the department is duty bound to furnish a copy of the same.

[Ganeshan Kalyani]

As per the VCES the declaration with tax details should have been filed and 50% payment should have been deposited by 31.12.2013 and second 50% should have been deposited by 30.06.2014 and if tax is pending even after the date it should have been paid by 30.12.2014 along with interest. You can approach department with the documents of VCES to convince them that you have correctly complied.

AI Summary

VCES discharge protection limits reopening except by senior commissioner; summons must include grounds and supporting order. Once FORM VCES-3 acknowledgement of discharge is issued by the AC/DC the matter ordinarily cannot be reopened, though the Principal Commissioner/Commissioner can reopen under their power. When issuing a summons under Section 14 the department must disclose the grounds and furnish the copy of the order passed by the Principal Commissioner/Commissioner; the taxpayer may demand that order. A taxpayer who has documentary proof of VCES compliance should produce those records to the department to demonstrate compliance.