TaxTMI 
TaxTMI 
2014 (7) TMI 585
X X X X Extracts X X X X
X X X X Extracts X X X X
....d the respective Advocates have addressed the Court on the point of law. Since the facts are not disputed, this Court proceeded to decide the writ-petition on the question of law agitated by the respective counsels. 2. The aforesaid scheme came into effect on and from May 10, 2013 for immunity against the penalty, interest and other proceedings against the defaulter of the service tax. The person who defaulted in deposit of the service tax may make a declaration before the designated authority on/or before December 31, 2013 in a prescribed manner. Section 107 of the said scheme further provided that such declaration is required to be acknowledged by the designated authority in such form and manner as may be prescribed and the declarant was....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that Section 110 of the said scheme clearly provides for modes of recovery under Section 87 of the Finance Act and, therefore, the authorities cannot take recourse to any other provisions except the one provided therein. Lastly it is submitted that the petitioner is all along ready to deposit the balance amount of the 'tax dues' with interest under the proviso to the aforesaid section and, therefore, action of the authorities in taking recourse to other provisions except the provision under Section 87 of the said chapter is invalid, illegal and beyond the boundary set by the said scheme. 5. On behalf of the respondent authorities, it is submitted that the moment 50% of the 'tax dues' is not paid on/or before December 31, 2013, the declara....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... manner as may be prescribed. (2) The designated authority shall acknowledge the declaration form in such form and in such manner as may be prescribed. (3) The declarant shall, on or before the 31st day of December 2013 pay not less than fifty per cent of the tax dues so declared under sub-section (1) and submit proof of such payment to the designated authority. (4) The tax dues or part of remaining to be paid after the payment made under sub-section (3) shall be paid by the declarant on or before the 30th day of June 2014; Provided that where the declarant fails to pay said tax dues or part thereof on or before the said date, he shall pay the same on or before ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....declared by him, such dues along with interest thereon shall be recovered under the provisions of section 87 of the Chapter." * * * * * * * * "112. Removal of doubts - For the removal of doubts, it is hereby declared that nothing contained in this Scheme shall be construed as conferring any benefit, concession or immunity on the declarant other than the benefit, concession or immunity granted under section 98." 7. The definition assigned to 'tax dues' makes it abundantly clear that the dues must fall within the parameter of the time limit provided therein. Section 107 entitles a defaulter in payment of the service tax falling within the period provided under the definition of the 'tax dues' to make a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o it appears that if the declarant fails to pay within 31st December, 2013 with interest thereof and the interpretation tried to be given by the petitioner is accepted, then the proviso would not have indicated that the interest would be calculated from 1st day of July, 2014. When there is clear indication in the proviso relating to the starting point of the limitation, there is no ambiguity to understand that such proviso is relatable to Sub-section (4) of Section 107 and not Sub-Section (3) thereof. The aforesaid proposition can be further fortified from Sub-section (7) of Section 107 of the said Act which is in unequivocal terms says that on furnishing the details of full payment of declared tax dues and the interest, if any, payable und....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... or in part, the balance amount would be recovered by taking recourse to Section 87 of the Finance Act. 13. It is tried to be contended by the respondent that Section 102 which contemplates for removal of doubts makes it abundantly clear that the immunity provided under the scheme would not be available to the declarant who committed default for compliance of the conditions relating to the deposit of tax dues. 14. On meaningful reading of the provisions contained therein it appears that the immunity as to any benefit, concession or immunity granted under Section 96 shall not be available to the defaulting declarant. The aforesaid provisions have to be read conjointly with section 110 of the said Act. If default is committed under the sche....