ST VCES, 2013 on last leg
THE ST VCES, 2013 has entered the decisive phase. The scheme ends on 31/12/2013. It appears from inputs gathered by CBEC (read arrests made over the past few days) that the service tax evaders who were fence sitters till now are a worried lot and have started sweating profusely.
And they may come in droves to file the VCES applications as the deadline approaches. So, the Member (Service Tax) has requested all the Chief Commissioners to ensure that adequate arrangements are made for speedy processing of applications.
The Board also takes note of the following clarification it offered in its Circular , Dated: August 8, 2013 -
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Whether declarant will be given an opportunity to be heard and explain his cases before the rejection of a declaration under section 106(2) by the designated authority?
Yes. In terms of section 106 (2) of the Finance Act, 2013, the designated authority shall, by an order, and for reasons to be recorded in writing, reject a declaration if any inquiry/investigation or audit was pending against the declarant as on the cutoff date, i.e., 1.3.2013. An order under this section shall be passed following the principles of natural justice.
To allay any apprehension of undue delays and uncertainty, it is clarified that the designated authority, if he has reasons to believe that the declaration is covered by section 106 (2), shall give a notice of intention to reject the declaration within 30 days of the date of filing of the declaration stating the reasons for the intention to reject the declaration. For declarations already filed, the said period of 30 days would apply from the date of this circular.
The declarant shall be given an opportunity to be heard before any order is passed by the designated authority.
Noting that the time period of thirty days will obviously not be available in cases where applications are filed now, the Member (Service Tax) instructs that the cases in which declarations are in order, the declarant must be orally communicated so that 50% of the tax dues are paid by 31/12/2013. In any case, he has to pay it by then! What about those applications sought to be rejected - do you call him up and convey the bad news?
The DG, DGCEI is also requested to suitably instruct his officers so that any references made by Commissionerates are disposed of expeditiously.
And most importantly, the Chief Commissioners are directed to ensure that the offices are kept open Saturdays, to take care of the influx of applications and for timely processing of the same. [In our DDT 2246, 6.12.2013, story 'The VCES laddoo' we had commented - There are only 26 days to go for the scheme to come to an end. And out of these, there are only 18 working days unless, of course, the CBEC instructs the Central Excise & Service Tax Commissionerates to keep their offices open on Saturdays & Sundays!]
It is also emphasized that in view of the three clarifications, dated 13.5.2013, 8.8.2013 and 25.11.2013 issued by TRU, the Commissioners should ensure that rejections by the Designated Authority are strictly covered by these three clarifications.
All in all a last ditch attempt to make the scheme a resounding success and gift to each declarant the VCES laddoo.
This letter is dated December 2, 2013. So should we presume that the Central Excise offices were open last Saturday?
F.No. Dated: December 2, 2013