2016 (7) TMI 638

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... is their case that, while they had registered themselves in the year 2001 and were regular in payment of service tax and in filing returns till September 2007, the threshold limit for exemption from service tax was raised from Rs. 5,00,000/- to Rs. 8,00,000/-; they had paid Rs. 22,135/- towards service tax on Mandap Keeper Services for the period November 2007 to March 2008, but did not file any returns during the said period; and since their turnover was less than the threshold limit of Rs. 8,00,000/-, they discontinued payment of service tax and in filing of the returns. The Government of India formulated a scheme knows as "Service Tax Voluntary Compliance Encouragement Scheme (VCES)" in Chapter VI of the Finance Act, 2013. That schem....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....eme was notified, and has made a declaration under the VCES for the remaining part of the tax dues, and the clarification sought was whether he would be entitled to the benefit of non-payment of interest/penalty, on the tax dues paid by him outside the VCES (i.e amount paid prior to VCES). The Central Board of Excise and Customs clarified that the immunity from interest and penalty was only for the tax dues declared under VCES; and if any tax dues had been paid, prior to the enactment of the scheme, the liability of interest or penalty thereon should be adjudicated as per the provisions of Chapter V of the Finance Act 1994 and paid accordingly. While the tax dues declared by the petitioner was for a sum of Rs. 3,77,150/-, they paid 50% t....