2019 (4) TMI 1968

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....pliance Encouragement Scheme, 2013 (for short, referred to as "VCES") is the subject matter of present dispute. The applications filed by the appellant were rejected by the authorities below on the ground that the investigations initiated against the appellants were pending as on 01.03.2013 and thus, the said applications cannot be considered for adjudication under Section 106(2) of the Finance Act, 2013. 2. The Learned Advocate appearing for the appellant submits that the summons dated 16.01.2013 issued by the department were not in connection with any specific offence or inquiry and were of general in nature. Thus, he submits that issuance of summons cannot be considered as initiation of investigation proceedings for rejection of the dec....

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....uch as on the date of enactment of such scheme, summons were issued to the appellant and matter was under active investigation. Thus, he submits that rejection of declaration under Section 106(2) of the Finance Act, 2013 is proper and justified. With regard to non-issuance of show cause notice within the period of 1 month from the date of declaration, he submits that the statutory provisions contained in the Finance Act, 2013 nowhere specifies regarding issuance of a notice within such stipulated time limit. Hence, he submits that the circular issued by Board contrary to the statutory provisions cannot be acted upon for consideration of the present dispute in favour of the appellant. In this context, he has relied upon the  Constitutio....

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....aration filed by the applicant is liable for rejection, upon compliance of the statutory provisions. We find that the department in this case, had issued the summon dated 16.01.2013 under Section 14 of the Central Excise Act, 1944, calling upon the appellant for submission of records such as, balance sheet, ledger accounts, work orders, invoices and other related service tax records/documents etc., concerning the taxable service provided by the appellant. Since, the summon issued by the department clearly specified the documents required for verification of the issue regarding discharge of appropriate service tax liability, it cannot be said that the appellant is falling under the execution category provided under Section 106(2) ibid. We fi....

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....ssued within 30 days from the date of filing of the declaration, we find that the Finance Act, 2013, governing the VCES nowhere specified the time limit within which the notice has to be issued by the department. The CBEC vide paragraph '12' in the circular dated 08.08.2013 has only clarified maintaining uniformity regarding issuance of notice within 30 days. Since, there is no specific time limit provided under the statute, the circular merely clarifying the position of issuance of show cause notice within specified time limit cannot override the provisions of the legislation and accordingly, the stand taken by the appellant cannot be considered as proper and justified. With regard to validity of the circular, contrary to the statutory pro....