TaxTMI 
TaxTMI 
2018 (7) TMI 1795
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....rtment after noticing certain discrepancies asked the appellants vide their letter dated 26.09.2012 and the subsequent reminders to provide the documents as that of ST-3 returns and balance sheets for the period 2010-11 and 2011-12 for manual scrutiny. It is thereafter that a short levy was noticed on the part of the appellant. Resultantly, a Show Cause Notice dated 17.04.2013 was issued to the appellants for the demand of said short levy. During the process of inquiry/investigation on the said Show Cause Notice, the appellant sought to avail the facility extended under Voluntary Compensation Encouragement Scheme (VCES) as was extended under VCES Rules, 2013 notified by Notification No. 10/2013-ST dated 13.05.2013. Appellant filed the VCES ....
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....ressed upon vide which the Department was restricted to have a narrow interpretation of Section 106 Sub-section 2 of VCES Rules 2013. It is also impressed upon that the cut off date as per VCES for the purpose of Section 106 Sub-Section 2 was 01.03.2013 and the impugned Show Cause Notice was issued on 17.04.2013 hence the Order under challenge suffers infirmity on both the aspects i.e. of violating procedure as well as violating the mandatory provisions of law. Accordingly, the Order is prayed to be set aside and Appeal is prayed to be allowed. 4. While rebutting these arguments, Ld. DR has justified the Order. Para 11 thereof has been impressed upon. Submitting that Commissioner(Appeals) has reasonably justified the decision considering....
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....ny subsequent period. (2) Where a declaration has been made by a person against whom, (a) an inquiry or investigation in respect of a service tax not levied or not paid or short levied or short paid has been initiated by way of (i) search of premises under Section 82 of the Chapter; or (ii) issuance of summons under Section 14 of the Central Excise Act 1944 (1 of 1944), as made applicable to the Chapter under Section 83 thereof; or (iii) requiring production of accounts, documents or other evidence under the Chapter or the rules made thereunder; or (b) an audit has been initiated and such inquiry, investigation or audit is pending as on the 1st day of March, 2013 then, the designated authority shall, by an order and for re....
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....rior to the said cut off date, that too to the notice of the appellant. 7. Though the Ld. Counsel for the appellant has tried to distinguish between the audit and the returns scrutiny but perusal of Section 106 shows that such distinction is not at all relevant for the said provision. Para 11 of the Order under challenge as impressed upon by the Ld. DR is clear that the designated authority vide the said Order and due to the reasons recorded in writing has rejected the declaration. Otherwise also the word as used in Section 106(2)(iii)(p) is 'shall', hence it was a statutory mandate upon the Department to reject the VCES declaration on account of ongoing inquiry/ investigation. 8. Now coming to the challenge of the appellant for the v....