Declarations rejected under ST VCES, 2013 are appealable - Punjab & Haryana HC
IN DDT 2097 dt. 03/05/2013, in the context of section 96(2) of Finance Bill, 2013 relating to the ST VCES, 2013 we had raised the following query -
"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?"
The CBEC had in Circular No. , Dated: August 08, 2013, clarified thus -
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What is the appeal mechanism against the order of the designated authority whereby he rejects the declaration under section 106 (2) of the Finance Act, 2013?
The Scheme does not have a statutory provision for filing of appeal against the order for rejection of declaration under section 106 (2) by the designated authority.
Thankfully, a declarant who wanted to have the VCES laddoo but whose Form VCES-1 was rejected by the designated authority, filed a Civil Writ Petition before the Punjab & Haryana High Court against this 'order' and the High Court in its order dated December, 9, 2013 has held thus -
"The impugned order, in our considered opinion, is appealable, under Section 86 of the Indian Finance Act, 1994, particularly as the scheme under which the petitioner has applied, is part and parcel of the aforesaid Finance Act, by virtue of the Indian Finance Act, 2013.
We are unable to accept correctness of instructions issued by the Central Board of Excise and Customs, for the simple reason that after incorporation of the Service Tax Voluntary Compliance Encouragement Scheme into the Finance Act, all other provisions of the Act except to the extent specifically excluded, apply to proceedings under the scheme. The impugned order passed by the Deputy Commissioner of Central Excise and Service Tax would necessarily be appealable under Section 86 of the Indian Finance Act, 1994…"
We could not hold this order back even for a day so we carried it yesterday evening. Please see 2013-TIOL-1016-HC-P&H-ST.
It is hoped that the benign Board takes this order in the right spirit and finds a solution, if need be, by invoking the provisions of section 113 of the Finance Act, 2013.
After all, at the core of everyone's heart is that the ST VCES, 2013 should be a success story just like it is for all those individuals shown in the advertisement blitzkrieg.