2019 (1) TMI 178

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....he 50% of their tax liability amounting to Rs. 22,96,606/- was deposited by the due date i.e. 31.12.2013. As per the Scheme the remaining 50% thereof was to be paid by 31st December, 2014 It is the case of the appellant that remaining amount of Rs. 5,12,007/- was paid by them on 30th December, 2014 itself and the remaining dues of 17,84,599/- alongwith the interest of Rs. 2,06,694/-, however, could not be paid by 31.12.2014 due to some technical issue with online payment link of CBEC. The remaining dues could finally been paid on 01.01.2015. The appellant's declaration under Voluntary Compliance Encouragement Scheme, 2013 (VCES) was rejected vide their letter No.5717 dated 25.06.2015. The appeal thereof was filed before Commissioner (Appeal....

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....mmissioner - 2016 (43) STR 348 (Ker.). Appeal is accordingly prayed to be dismissed. 4. After hearing both the parties and perusing the record, I observe and held as follows: In accordance of sub-Section (3) of Section 107, it was mandate for declaring under VCES 2013 Scheme to pay not less than 50% of the declared tax dues under the Scheme on or before 31st December, 2013. In furtherance of sub-section (4) thereof the tax dues or part remaining to be paid after the aforesaid declaration was mandatorily to be made on or before 30.06.2014 or latest by 31.12.2014. The declaration of the appellant, in the present case, has been rejected on the ground that declarant / appellant has failed to paid the part of their tax dues on or before 31....

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....ide of the appellant. In the given circumstances, the rigid interpretation given to the word "shall" of Section 107 (4), to my opinion, is not justified. Since Department itself acknowledges that the appellant bonafidely attempted to deposit the part amount of their declaration on 31.12. 2014 the rigid interpretation given by the Department do not justify the circumstances. 6. No doubt the provisions of the exemption schemes have to be strictly interpreted and the time limit specified in the scheme for the payment of amounts together with the interest have to be strictly adhered to. But to my opinion, the said rigid interpretation cannot strictly be applied on the facts of the instant case. Since the admitted effort of the appellant to m....