ST Voluntary Compliance Encouragement Scheme, 2013 - few queries
AFTER getting to know that the VCES, 2013 provisions have not seen any amendment in the Finance Bill, 2013, a netizen sent us this mail -
"Section 96(2) says that where a declaration has been made by a person against whom - an enquiry/investigation has been initiated in respect of ST not levied or not paid or short-levied or short paid by way of viz. search of premises u/s 82 of FA, 1994; issuance of summons u/s 14 of CEA, 1944;requiring production of accounts, documents or other evidence OR an audit has been initiated, and such inquiry/investigation or audit is pending as on the 1 st March, 2013, then the designated authority [not below the rank of AC/DC] by an ‘order' and for reasons to be recorded in writing reject such declaration.
What do you mean by initiation of an audit?
Does it mean mere writing of letter to an assessee informing that Audit would be conducted on such and such date? The answer should be a resounding NO. This is because this clause of audit has been separately mentioned at (b). So, if the department has issued a letter prior to 1 st March, 2013 informing a person of an impending audit in the month of March, 2013, he should not be hit by this exclusion clause.
However, a reading of the sub-section (2) indicates that inspite of these exclusions if a person makes an application/declaration, such a declaration can be rejected by the designated authority after giving reasons therefor. The usage of the word ‘order' means the principles of natural justice have to be followed. So if the declarant is unhappy with this order can HE GO IN APPEAL AND IF SO TO WHICH AUTHORITY? THE PROVISIONS OF THE SCHEME ARE SILENT IN THIS REGARD AND NEED CLARITY. Assuming that the declaration is rejected can the evidence be used against the person?Suppose the designated authority wrongly allows an applicant to file a declaration under section 96 of the VCES though he is hit by the debarring clauses. Can this order be reviewed by the Commissioner or any authority?
If at the threshold itself there are so many queries, the Central Government needs to bring out an Education Guide and if needed make suitable amendments before the scheme becomes operational. This is the DDT view.