TaxTMI 
TaxTMI 
2014 (11) TMI 971
X X X X Extracts X X X X
X X X X Extracts X X X X
....o 114. Broadly, the scheme enables a person to make declaration of his tax dues and subject to fulfilling the conditions in the said scheme, such declarant would get immunity from interest and penalties of previously not having paid the taxes. Section 106 pertains to a person who may make declaration. Procedure for making declaration and payment of tax dues is provided in Section 107. Upon such declaration being accepted as per Section 108, the declarant would get immunity from penalty, interest and other proceedings. Sub-section (1) of Section 107 enables a person to make a declaration to the designated authority before December 31, 2013 in the prescribed format. Under sub-section (3) of Section 107, the declarant has to pay not less than ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... premise that 50% of the tax dues were not deposited before December 31, 2013, the respondent No. 3 under the impugned communication dated March 19, 2014, conveyed to the petitioner as under : "Subject : Rejection of your VCES Declaration matter - reg. You are hereby informed that your VCES declaration of Rs. 16,42,936/-, dated 26-12-2013 has been rejected by the Commissioner, Service Tax, Ahmedabad due to following reasons :- (i) Less payment then the 50% of tax dues of the total declared tax dues. You are hereby informed that the declared amount under VCES is recoverable under Section 87 of Finance Act, 1994 immediately. Therefore, you are requested to pay up the said amount immediately along with interes....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ances, the petitioner not having fulfilled the essential requirement of the scheme, the authority committed no error in rejecting such declaration. 5. The learned counsel for the petitioner, however, raised two fold contentions. He firstly contended that the shortfall was due to a bona fide calculation error. The amount involved was very small. He secondly contended that under Section 110, the tax short-paid could be recovered with interest, but the declaration itself cannot be rejected. 6. To our mind, neither of the two contentions can be accepted. The scheme makes no difference between tax dues which are short-paid due to bona fide error and one which flows from deliberate inaction. There is no power for waiving or relaxing t....