TaxTMI 
TaxTMI 
2019 (4) TMI 1353
X X X X Extracts X X X X
X X X X Extracts X X X X
....stice Jyoti Saran And Mr. Justice Arvind Srivastava For the Petitioner/s : Mr. Rajiv Kumar Singh, Adv. For the Respondent/s : Mr. Anjani Kumar Sharan, Asstt. S.G. ORAL JUDGMENT MR. JUSTICE JYOTI SARAN Heard Mr. Rajiv Kumar Singh, learned counsel appearing for the petitioners and Mr. Anjani Kumar Sharan, Assistant Solicitor General for the Union of India in the Department of Customs, Central Excise and Service Tax. The petitioner prays for a writ in the nature of certiorari for quashing a notice bearing memo no. 1785 dated 20.11.2018 issued in purported exercise of powers vested in the Deputy Commissioner CGST, Central Division, Patna under Section 87 of the Finance Act, 1994, whereby the Indusind Bank of the petitioner has....
X X X X Extracts X X X X
X X X X Extracts X X X X
....Mr. Sharan in opposition thereof, on its merits. The Scheme in question by its very nomenclature is an Encouragement Scheme enabling the Tax Payers to an honourable exit provided, they ensure compliance of the pre-requisites to such benefits by making correct disclosures of tax dues as on 1st March, 2013 pertaining to the period 01.10.2007 until 31.12.2012 and make payment of 50% thereof as until 31.12.2013 as per declaration made and balance 50% by 30th June, 2014 of the year following. Two provisions which would be relevant for consideration of the issue raised and contested by the parties are Clause 105(1)(e) which defines "tax dues" and Clause 107, which reads under: "105(1)(e) "tax dues" means the service tax due or payable....
X X X X Extracts X X X X
X X X X Extracts X X X X
....(5) Notwithstanding anything contained in subsection (3) and sub-section (4), any service tax which becomes due or payable by the declarant for the month of January, 2013 and subsequent months shall be paid by him in accordance with the provisions of the Chapter and accordingly, interest for delay in payment thereof, shall also be payable under the Chapter. (6) The declaratnt shall furnish to the designated authority details of payment made from time to time under this Scheme along with a copy of acknowledgement issued to him under sub-section (2). (7) On furnishing the details of full payment of declared tax dues and the interest, if any, payable under the proviso to sub-section (4) the designated authority shall issue an....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... which ignores a deposit made by a tax payer in between the period 01.03.2013 and 10.05.2013 i.e. the date on which Scheme got incorporated, rather if the Scheme takes into its fold the tax dues as existing on 01.03.2013, then in our opinion every deposit made by a tax payer since after 01.03.2013 would constitute a deposit towards tax arrears so declared. The order of the Assistant Commissioner, Central Excise and Service Tax Division dated 17.11.2014 completely fails on reasons as well as on the interpretation of the Scheme rather reflects a complete misappreciation of the stipulations present thereunder. Our attention has been invited to an opinion given by the Bombay High Court in Service Tax Appeal No. 01 of 2018 (Dr. Yeshwant Dh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....High Court "16. Combined reading of Section 106 with Section 105(1)(e) would make it clear that the position of a declarant vis-a-vis his service tax dues would have to be ascertained as on 1-3-2013, declaration of such a person would not be accepted. Likewise, arrear of tax which could be declared in such declaration would be the service tax due or payable for the period between 1-10-2007 to 31-12-2012 and which sum is not paid before 1-3-2013. In plain terms, therefore, if any service tax is due and payable by a person for the aforesaid period, the same would be included in the definition of the expression "tax dues" if the same has not been paid as on 1-3-2013. 17. In the present case, admittedly the disputed amount of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s were fulfilled." Another patent illegality which surfaces in the present proceeding is that even if two of the deposits made by the petitioner in the opinion of the statutory authority did not qualify for the benefit under 'the VCES, 2013', nonetheless it was a deposit towards tax arrears and thus was not capable of being ignored to disqualify the petitioner of the declaration so made about the tax arrears. We find it rather strange that despite there being no dispute on the deposit towards the arrears of taxes by the petitioner, yet under the cover of Clause 110 of 'the VCES, 2013' that the respondent authorities in the Customs, Central Excise and Service Tax Department has proceeded to invoke the provision of Section 87 of Finance Ac....