fiogf49gjkf0d
When failure to make 50% payment within time-limit prescribed under VCES is for the reasons not attributable to declarant but for the system error, benefit of the scheme cannot be denied.
Facts
Assessee applied for VCES Scheme on 31/12/2013 and after obtaining the service tax registration attempted to deposit 50% of declared tax dues. After making number of attempts on the website, the transaction could not be completed and error message “assessee code invalid” was reported all the time. Subsequently on 01/01/2014 the amount was deposited through banker’s cheque. The Adjudicating authority observed that since 50% dues were not paid on or before the 31/12/2013, benefit of VCES Scheme notified under Finance Act, 2013 was not available.
Held
Tribunal observed that admittedly, as per VCES Scheme, 2013, 50% of the declared dues is supposed to be deposited by 31/12/2013 and there is no provision for extension of that period for deposit. However in the present case, the respondent undisputedly applied for registration, obtained assessee code number and attempted to deposit 50% amount on 31/12/2013 however due to system fault the amount could not be deposited. It further observed that report which shows that “assessee code invalid” was also on record on 31/12/2013 and their bank account had credit balance of more than 50% amount which was to be deposited. In these factual circumstances, Tribunal held that assessee has scrupulously followed the procedure and complied with condition i.e. applied for registration and attempted to deposit the amount on the due date i.e. 31/12/2013 but only due to system fault online, the amount could not be deposited which is beyond their control therefore, it can be construed that there is no delay and though the payment is made on 01/01/2014, the same can be treated as if payment was made on 31/12/2013.
