By Puloma Dalal, Jayesh Gogri, Mandar Telang Chartered Accountants
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Is an order passed with respect to service tax Voluntary Compliance Encourage Scheme appealable?
Facts:
Voluntary Compliance Encouragement Scheme (VCES) was introduced vide Finance Act, 2013 for service tax defaulters which is part of the Finance Act, 1994 i.e., part of service tax statute itself. The defaulters were required to pay service tax dues in instalments as specified and were granted immunity from interest and penalty. Vide Circular No. 170/5/2013–ST, it was clarified that the order for rejection of declarations under VCES were not appealable. The petitioners filed a writ petition challenging the validity of the said clarification. The petitioners prayed that the writ petition to be dismissed as withdrawn with liberty to file appeal and that such appeal should be directed to be decided within fortnight.
Held:
After incorporation of VCES into the Finance Act, 1994, all provisions except specifically excluded applies to the scheme. Impugned order passed by the Deputy Commissioner of Central Excise was appealable vide section 86 of the Finance Act, 1994. In view of the request of the petitioner, writ petition was dismissed as withdrawn with a liberty to file an appeal and that the appeal shall be considered and decided within a fortnight.
(Note: The decision that VCES rejection order is appealable is noted. However, the appealability vide section 86 appears incorrect as the Order of Rejection is passed by the Deputy Commissioner. The appeal against this is to be filed under section 85 of the Act according to the authors).
