2018 (7) TMI 861

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....x demand of Rs. 81,64,644/- (Rupees Eighty One Lakhs Sixty Four Thousand Six Hundred & Fifty Four only) as payable by M/s. Siddhi Property Developers Pvt. Ltd., under the provisions of Section 73(2) of the Finance Act, 1994. b) I order appropriation of Service Tax amount of Rs. 55,80,772/- paid by the assessee against the demand confirmed at (a) above. c) I order for recovery of interest at appropriate rate from the due date on which the Service Tax was payable till the date of payment on the amount detailed in para 14 above under the provisions of Section 75 of the Finance Act, 1994. d) I order for appropriation of interest of Rs. 15,35,354/- paid by the notice against the demand of interest in (c) above. ....

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....and hence not considered as a payment under the said scheme. The appellant also paid an amount of Rs. 55,80,772/- being other payments (i.e. against service tax demand of Rs. 3,11,97,514/- - Rs. 2,56,16,742/-) for which VCES certificate was issued). 3. Challenging the order of the Commissioner in appeal along with other grounds, the appellant has challenged the show cause notice issued to them under Section 73 of the Finance Act, 1994. The ground for challenge is since they have made the declaration under VCES scheme and also a certificate under VCES scheme has been issued to them, the proceedings could have been initiated against them only in terms of Section 111 of the Finance Act, 2013 and not under Section 73 of the Finance Act, 1994....

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....eproduced below:- "The Service Tax Voluntary Compliance Encouragement Scheme (VCES) has been announced in this year's budget. It has come into effect from 10.5.2013. The objective of this Scheme is to encourage disclosure of tax dues and compliance of service tax law by the persons who have not paid service tax dues for the period from Oc. 2007 to Dec. 2012, either on account of ignorance of law or otherwise. VCES is the opportunity for such persons to pay the "tax dues" and come clean. On payment of "tax dues" relating to the period under VCES, there will be a complete waiver of interest, penalty and other consequences." 4.2 In the present case, they have come forward and made the declaration under the provisions of the scheme ....

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....ere the Commissioner of Central Excise has reasons to believe that the declaration made by a declarant under this Scheme was substantially false, he may, for reasons to be recorded in writing, serve notice on the declarant in respect of such declaration requiring him to show cause why he should not pay the tax dues not paid or short-paid. (2) No action shall be taken under sub-section (1) after the expiry of one year from the date of declaration. (3) The show cause notice issued under sub-section (1) shall be deemed to have been issued under section 73, or as the case may be, under section 73A of the Chapter and the provisions of the Chapter shall accordingly apply." In terms of Section 111(3), it is a fact that any not....