TaxTMI 
TaxTMI 
2015 (3) TMI 633
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....ce is that it is a company incorporated under the Companies Act, 1956, engaged, inter-alia, in the manufacture of a Textile Dyes, Sizing Chemicals and Textile Auxiliaries. It was also engaged in providing Renting of Immovable Property Services and Management, Maintenance and Repair Services, within the meaning of Chapter V of the Finance Act, 1994. 3. The petitioner gave its commercial premises on leave and licence to various occupants for carrying out commercial activity. These occupants challenged the levy of service tax on renting of immovable property services, but that challenge failed. 4. Eventually, the petitioner in terms of the half yearly returns computed the service tax liability. However, because of the on going litigation, th....
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....Shah invites our attention to the order and submits that the third respondent has given a treatment to the service tax liability as if the third respondent was not considering any such scheme, but computing the tax liability, so as to pass an adjudication order. Mr.Shah would submit that the power to pass such an order must be traceable and to the scheme itself. The only power which the said third respondent derives is in terms of the first proviso to Section 106(1) of the Finance Act, 1994. The reading of this proviso as also the scheme would indicate that there is no power conferred in the Respondent No.3 . If the scheme can be availed of by non filers or stop filers or persons who had not made a truthful declaration in the return, then, ....
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....trary and perverse. Such is not the position. Therefore, the writ petition be dismissed. 8. With the assistance of both counsel we have perused the writ petition and all the annexures. The third respondent had before it the declaration / application filed. That is filed by the petitioner declaring tax dues in respect of the above services . The Voluntary Compliance Encouragement Scheme was invoked by the petitioner, so as to make a declaration of the service tax liability . The authority has referred to the fact that on scrutiny of the annexures/calculation sheets submitted along with this application, vis -a- vis , the service tax-3 returns filed in the past in respect of the above services, it appeared that the tax dues of Rs. 31 ,51,010....
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.... the persons like the petitioner can make the declaration and in terms of the scheme, then, there should be something in the enactment and namely the Finance Act so as to make the bifurcation or a breakup of the liability to pay tax. The respondent no.3 has referred to Section 106(1) of the Finance Act and the proviso therein to arrive at the conclusion that any person who has furnished return under Section 70 of Chapter and disclosed his true liability but has not paid the disclosed amount of service tax or any part thereof, then he is not eligible for the declaration for the period covered by the said return. We do not understand as to how merely because what has been disclosed as true liability in the returns filed pertaining to service ....
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....nd disclosed his true liability but had not paid his tax amount for the service tax or part thereof, shall not be eligible to make declaration for the period covered by the said return. This proviso, therefore, disables such a person from making a declaration for the period covered by the return. That is a distinct eventuality then that is dealt with in the impugned order. Here, the authority undertakes the task of bifurcating or computing the liability by showing some disparity or difference in the figures of the service tax returns, and the disclosures or the declarations filed in a prescribed form pursuant to this scheme. We have no provision therefore before us which would enable us to sustain the exercise and which is carried out by th....