The finance ministry has relaxed conditions of the much touted amnesty scheme for service providers who had not paid their tax dues. As per the new norms, the department could consider waiver of penalty for service providers who had paid tax arrears prior to implementation of the amnesty scheme announced in Budget 2013-14. The Voluntary Compliance Encouragement Scheme, or VCES, was implemented from May 10, 2013. “There may be a case for taking a lenient view on the issue of penalties under the provision of the Finance Act, 199,” a Central Board of Excise & Customs directive issued to its field officers said. The circular also directs senior officials to ensure that no declaration is rejected on frivolous grounds or by taking a wider interpretation of the prescribed conditions under the scheme.”
Courtesy…. The Economic Times, dt 26-11-2013
Circular no 174 dt 25/11/2013 issued by TRU, in brief, clarifies that:
1. In case of incomplete or defective declaration, matter should be explained to the declarant and assistance provided for rectifying the defects in the declaration so as to make it acceptable.
2. If the issue, period of inquiry, investigation, audit to which the provisions of Section 106(2) may be attracted is identifiable from summons, or any other document, the declaration only in respect of such issue, period may be liable for rejection.
3. Any roving inquiry will not mechanically lead to rejection of the declaration- the same would be examined on merits.
4. Benefit of scheme is available for any ‘tax dues’ paid by the assessee before filing the declaration, but after the commencement of the scheme.
5. Lenient view may be taken for imposition of penalty, in view of the provisions of Sec. 73(3) and Sec. 80 of the Finance Act, 1994 for amount of service tax and interest in respect of the period covered by the scheme, and paid by the party before the scheme came into effect.
