TaxTMI 
TaxTMI 
2022 (3) TMI 634
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.... 2. The learned counsel Shri Ajay Kumar Gupta appeared for the appellant and argued the matter. He submitted that the appellant namely M/s. Sea Queen Shipping Ltd. opted to avail the benefit of Voluntary Compliance Encouragement Scheme during the year 2013 and filed the necessary declaration on 23.12.2013 in which they declared their service tax dues to be Rs. 9,97,349/-. As per section 107(3) of Finance Act, 1994 and Circular No. 170/5/2013-ST dated 8.8.2013, the declarant has to pay at least 50% of the declared tax dues on or before 31.12.2013 failing which he would not be eligible to avail the benefit of the scheme. 3. The appellant paid 50% of the declared dues to the tune of Rs. 4,98,675/- by way of Demand Draft bearing No. 128733 d....
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....be utilised for payment of tax dues under the Scheme." 5. As per the above Rule, the tax dues can be paid in the manner prescribed for payment of service tax under the Service Tax Rules, 1994. The method of payment of service tax is stated in Rule 6 of Service Tax Rules, 1994 which reads as under:- "Rule 6 of the Service Tax Rules, 1994 (ST Rules), which is relevant for the purposes of the present case reads as under : 6. Payment of tax dues.- (1) The service tax shall be paid to the credit of the Central Government,- (i) by the 6th day of the month, if the duty is deposited electronically through internet banking; and (ii) by the 5th day of the month, in any other case, Immediately f....
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.... pay an amount as service tax in advance, to the credit of the Central Government and adjust the amount so paid against the service tax which he is liable to pay for the subsequent period: Provided that the assessee shall,- (i) intimate the details of the amount of service tax paid in advance, to the jurisdictional Superintendent of Central Excise within a period of fifteen days from the date of such payment; and (ii) indicate the details of the advance payment made, and its adjustment, if any in the subsequent return to be filed under section 70 of the Act. [(2) Every assessee shall electronically pay the service tax payable by him, through internet banking: Provided that the Assistant Commissio....
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....hajharia appeared for the department. He argued the matter and filed written synopsis. It is submitted by him that VCES was introduced with effect from 11.5.2013. The scheme provided for more than seven months' time to file declaration and to pay 50% of the declared tax dues. However, considering the difficulties that may be faced by the declarants in remitting 50% payment at the closure date on 31.12.2013, the Ministry of Finance, Controller General of Accounts issued Instruction No. 3(2) (2)/2013/TA/775 dated 30.12.2013 providing for payment of tax dues by demand draft or pay orders directly with the department for two days on 30.12.2013 and 31.12.2013 only. The aforesaid trade facilitation measure was widely publicized in daily newspaper....
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....) of Service Tax Rules, 1994 provides for payment of service tax by way of cheque also. In the present case, the appellant has filed the declaration along with the demand draft and cheque on the last date of the scheme. In page 32 of the appeal paper book, the letter accompanied with the documents is furnished by the appellant. In the said letter, he has stated the serial number of the demand draft as well as the cheque. However, he has not specifically mentioned that the number 000416 pertains to cheque. This is the reason why the lower authority has discussed in para 4 of the Order in Original that the appellant tried to present the cheque in the guise of demand draft. Though the appellant specified the number of the demand draft as well ....
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....ue to the bank designated by the Central Board of Excise and Customs for this purpose shall be deemed to be the date on which service tax has been paid subject to realization of that cheque. It is not in dispute that the petitioner deposited the cheque constituting 50% of the service tax dues in terms of the VCES Scheme, 2013 on 31st December, 2013 and it was realised on 8th January, 2014. With the cheque having been realized, the date on which the service tax should be taken to have been paid, is deemed to be the date of presentation of the said cheque in terms of Rule 6(2A) of the ST Rules. 14. The impugned order dated 15th August, 2014 makes no reference to Rule 6(2A) of the ST Rules. On this ground itself, the impugned order ca....