Page 66 - GSTL_18th June 2020_Vol 37_Part 3

280 GST LAW TIMES [ Vol. 37
14. Persons who are eligible to avail the benefit of aforesaid scheme has
been specified under Section 106(1) of the Finance Act. Section 106 reads as un-
der :-
“106. Person who may make declaration of tax dues. - (1) Any person
may declare his tax dues in respect of which no notice or an order of determi-
nation under Section 72 or Section 73 or Section 73A of the Chapter has been
issued or made before the 1st day of March, 2013 :
Provided that any person who has furnished return under Section 70
of the Chapter and disclosed his true liability, but has not paid the dis-
closed amount of Service Tax or any part thereof, shall not be eligible to
made declaration for the period covered by the said return :
Provided further that where a notice or an order of determination has been
issued to a person in respect of any period on any issue, no declaration shall be
made of his tax dues on the same issue for any 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 lev-
ied or not paid or short-levied or short-paid has been initiated
by way of -
(i) search or premises under Section 82 of the Chapter; or
(ii) issuance of summons under Section 14 of the Central Ex-
cise Act, 1944 (1 of 1944), as made applicable to the Chap-
ter under Section 83 thereof; or
(iii) requiring production of accounts, documents or other ev-
idence 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 rea-
sons to be recorded in writing, reject such declaration.”
15. During the Budget speech on 28-2-2013 when the Finance Bill, 2013
was introduced, the Finance Minister has stated the reasons for providing for
such a Scheme in the Finance Bill. Paragraph 183 of the Budget speech is repro-
duced below :
“183. While there are nearly 17,00,000 registered assessees under service
tax, only about 7,00,000 file returns. Many have simply stopped filing re-
turns. We cannot go after each of them. I have to motivate them to file re-
turns and pay the tax dues. Hence, I propose to introduce a one-time
scheme called ‘Voluntary Compliance Encouragement Scheme’. A defaulter
may avail of the scheme on condition that he files a truthful declaration of
service tax dues since 1-10-2007 and makes the payment in one or two in-
stalments before prescribed dates. In such a case, interest, penalty and other
consequences will be waived. I hope to entice a large number of assessees
to return to the tax fold. I also hope to collect a reasonable sum of money.”
16. The Government has also made rules of Commissioner (sic) effect to
the aforesaid scheme by virtue issued Notification No. 10/2013-Service Tax,
dated 13-5-2013. On 13-5-2013, the Government of India, Ministry of Finance
(Department of Revenue), Central Board of Excise and Customs, New Delhi has
also issued a clarification, wherein, it has been clarified and further clarification
dated 8-8-2013 at Serial No. 8, it has been clarified as under :
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