INDOKEM LTD. Vs. UNION OF INDIA

JUDGEMENT

(1.) This Writ Petition challenges the order dated 30th June, 2014, which has been passed by the Designated Authority (Respondent No. 3). The said Authority was implementing a Voluntary Compliance Encouragement Scheme (hereinafter referred to as "VCES", for short). The Petitioner's grievance is that it is a company incorporated under the Companies Act, 1956, engaged, inter alia, in the manufacture of a Textile Dyes, Sizing Chemicals and Textile Auxiliaries. It was also engaged in providing Renting of Immovable Property Services and Management, Maintenance and Repair Services, within the meaning of Chapter V of the Finance Act, 1994.

(2.) The petitioner gave its commercial premises on leave and licence to various occupants for carrying out commercial activity. These occupants challenged the levy of service tax on renting of immovable property services, but that challenge failed.

(3.) Eventually, the petitioner in terms of the half yearly returns computed the service tax liability. However, because of the on going litigation, the computation was not in terms of the relevant statutory provisions and Rules. The Government of India in the Budget of 2013, proposed the above scheme so as to encourage voluntary compliance. The broad features of the scheme are indicated and if parries like the petitioner who have not made a declaration in terms of the liability to pay tax make such a declaration then that has to be dealt with in accordance with the scheme. The petitioner filed an application dated 4th December, 2013, in the relevant form under the scheme disclosing the liability which was not correctly disclosed in the return for the period October 2007 to March 2012. They declared tax dues of Rs. 31,54,010/- and Rs. 2,65,431/- pertaining to the two services rendered and noted herein above. The receipt of the petitioner's application was acknowledged and after that the petitioner paid the entire service tax, in one installment.