voluntary compliance scheme

[jagannath prasad]

Is there any provision of withdrawal of immunity under VCES,13,if some short declaration is detected due to calculation mistake within a year, will the declaration be substantially false.

AI Summary

Calculation Error in VCES Declaration Not Deemed False; Immunity Maintained; Appellant Granted 40% Abatement A query was raised regarding the withdrawal of immunity under the Voluntary Compliance Encouragement Scheme (VCES), 2013, if a short declaration due to a calculation mistake is detected. Kasturi Sethi responded that a calculation mistake does not equate to a false declaration, citing a case where an appellant corrected an arithmetical error and paid the due balance with interest, which was not considered substantially false by the CESTAT. The appellant was entitled to a 40% abatement as the gross amount included food items. The appeal was allowed, and the VCES declaration was accepted. Ganeshan Kalyani acknowledged the usefulness of the provided case law.