Appllication under SVLDRS

[Mr Rao]

Sir,

One of my clients has disclosed his service tax liability for the period 2012-13 and applied for VCES scheme in the year 2013 for waiver of interest and penalty. As per the scheme he was required to pay 50% of the tax amount by 31.12.2013 and balance of 50% tax liability by 30.6.2014 or 31.12.2014 (with interest) and then only the scheme applies. The client has paid 50% of the tax amount by 31.12.2013 but due to financial problems he could not pay the balance 50% by 30.6.2014 or 31.12.2014(with interest). Hence his application was rejected under VCES. Now the assessee want to file the application under SVLDRS. Whether he is eligible to file the same under SVLDRS. If so under what category whether it is under litigation or arrears or voluntary disclosure. Experts opinion is sought to resolve the issue.

AI Summary

Tax recovery provisions may preclude SVLDRS eligibility when declared VCES tax dues remain unpaid.
Unpaid tax dues declared under VCES that resulted in rejection of the VCES application are subject to administrative recovery under the statutory recovery powers. Such unpaid declared dues thus align with recoverable revenue claims pursued by deduction, notices to third parties, distraint, sale of assets, or recovery certificate treatment, and do not automatically fall within SVLDRS voluntary disclosure or litigation categories absent ongoing contested proceedings or issuance of a show cause notice.