CHAPTER VI SERVICE TAX VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME, 2013

Short title.
104. This Scheme may be called the Service Tax Voluntary Compliance
Encouragement Scheme, 2013.
Definitions.
105. (1) In this Scheme, unless the context otherwise requires,—
(a) “Chapter” means Chapter V of the Finance Act, 1994;
(b) “declarant” means any person who makes a declaration under sub-section (1)
of section 97;
(c) “designated authority” means an officer not below the rank of Assistant
Commissioner of Central Excise as notified by the Commissioner of Central Excise
for the purposes of this Scheme;
(d) “prescribed” means prescribed by rules made under this Scheme;
(e) “tax dues” means the service tax due or payable under the Chapter or any
other amount due or payable under section 73A thereof, for the period beginning
from the 1st day of October, 2007 and ending on the 31st day of December, 2012
including a cess leviable thereon under any other Act for the time being in force, but
not paid as on the 1st day of March, 2013.
(2) Words and expressions used herein and not defined but defined in the
Chapter or the rules made thereunder shall have the meanings respectively assigned
to them in the Chapter or the rules made thereunder.
Person who may make declaration of tax dues.
106. (1) Any person may declare his tax dues in respect of which no notice or an
order of determination under section 72 or section 73 or section 73A of the Chapter
has been issued or made before the 1st day of March, 2013:
Provided that any person who has furnished return under section 70 of the
Chapter and disclosed his true liability, but has not paid the disclosed amount of
service tax or any part thereof, shall not be eligible to make declaration for the period
covered by the said return:
Provided further that where a notice or an order of determination has been
issued to a person in respect of any period on any issue, no declaration shall be
made of his tax dues on the same issue for any subsequent period.
(2) Where a declaration has been made by a person against whom,—
(a) an inquiry or investigation in respect of a service tax not levied or not
paid or short-levied or short-paid has been initiated by way of—
(i) search of premises under section 82 of the Chapter; or
(ii) issuance of summons under section 14 of the Central Excise Act,
1944, as made applicable to the Chapter under section 83 thereof; or
(iii) requiring production of accounts, documents or other evidence
under the Chapter or the rules made thereunder; or
(b) an audit has been initiated,
and such inquiry, investigation or audit is pending as on the 1st day of March, 2013,
then, the designated authority shall, by an order, and for reasons to be recorded in
writing, reject such declaration.
Procedure for making declaration and payment of tax dues.
107. (1) Subject to the provisions of this Scheme, a person may make a declaration to
the designated authority on or before the 31st day of December, 2013 in such form
and in such manner as may be prescribed.
(2) The designated authority shall acknowledge the declaration in such form and
in such manner as may be prescribed.
(3) The declarant shall, on or before the 31st day of December, 2013, pay not less
than fifty per cent. of the tax dues so declared under sub-section (1) and submit
proof of such payment to the designated authority.
(4) The tax dues or part thereof remaining to be paid after the payment made
under sub-section (3) shall be paid by the declarant on or before the 30th day of June,
2014:
Provided that where the declarant fails to pay said tax dues or part thereof on or
before the said date, he shall pay the same on or before the 31st day of December,
2014 along with interest thereon, at such rate as is fixed under section 75 or, as the
case may be, section 73B of the Chapter for the period of delay starting from the 1st
day of July, 2014.
(5) Notwithstanding anything contained in sub-section (3) and sub-section (4),
any service tax which becomes due or payable by the declarant for the month of
January, 2013 and subsequent months shall be paid by him in accordance with the
provisions of the Chapter and accordingly, interest for delay in payment thereof,
shall also be payable under the Chapter.
(6) The declarant shall furnish to the designated authority details of payment
made from time to time under this Scheme along with a copy of acknowledgement
issued to him under sub-section (2).
(7) On furnishing the details of full payment of declared tax dues and the interest,
if any, payable under the proviso to sub-section (4), the designated authority shall
issue an acknowledgement of discharge of such dues to the declarant in such form
and in such manner as may be prescribed.
Immunity from penalty, interest and other proceeding.
108. (1) Notwithstanding anything contained in any provision of the Chapter, the
declarant, upon payment of the tax dues declared by him under sub-section (1) of
section 97 and the interest payable under the proviso to sub-section (4) thereof, shall
get immunity from penalty, interest or any other proceeding under the Chapter.
(2) Subject to the provisions of section 101, a declaration made under subsection
(1) of section 97 shall become conclusive upon issuance of acknowledgement
of discharge under sub-section (7) of section 97 and no matter shall be reopened
thereafter in any proceedings under the Chapter before any authority or court
relating to the period covered by such declaration.
No refund of amount paid under the Scheme.
109. Any amount paid in pursuance of a declaration made under sub-section (1) of
section 97 shall not be refundable under any circumstances.
Tax dues declared but not paid.
110. Where the declarant fails to pay the tax dues, either fully or in part, as declared
by him, such dues along with interest thereon shall be recovered under the
provisions of section 87 of the Chapter.
Failure to make true declaration.
111. (1) Where the Commissioner of Central Excise has reasons to believe that the
declaration made by a declarant under this Scheme was substantially false, he may,
for reasons to be recorded in writing, serve notice on the declarant in respect of such
declaration requiring him to show cause why he should not pay the tax dues not
paid or short-paid.
(2) No action shall be taken under sub-section (1) after the expiry of one year
from the date of declaration.
(3) The show cause notice issued under sub-section (1) shall be deemed to
have been issued under section 73, or as the case may be, under section 73A of the
Chapter and the provisions of the Chapter shall accordingly apply.
Removal of doubts.
112. For the removal of doubts, it is hereby declared that nothing contained in this
Scheme shall be construed as conferring any benefit, concession or immunity on the
declarant other than the benefit, concession or immunity granted under section 98.
Immunity
Power to remove difficulties.
113. (1) If any difficulty arises in giving effect to the provisions of this Scheme, the
Central Government may, by order, not inconsistent with the provisions of this
Scheme, remove the difficulty:
Provided that no such order shall be made after the expiry of a period of two
years from the date on which the provisions of this Scheme come into force.
(2) Every order made under this section shall, as soon as may be after it is
made, be laid before each House of Parliament.
Power to make rules.
114.– (1) The Central Government may, by notification in the Official Gazette, make
rules for carrying out the provisions of this Scheme.
(2) Without prejudice to the generality of the foregoing power, such rules may
provide for all or any of the following matters, namely:—
(a) the form and the manner in which a declaration may be made under
subsection (1) of section 97;
(b) the form and the manner of acknowledging the declaration under subsection
(2) of section 97;
(c) the form and the manner of issuing the acknowledgement of discharge of
tax dues under sub-section (7) of section 97;
(d) any other matter which is to be, or may be, prescribed, or in respect of
which provision is to be made, by rules.
(3) The Central Government shall cause every rule made under this Scheme to
be laid, as soon as may be after it is made, before each House of Parliament, while it
is in session, for a total period of thirty days which may be comprised in one session
or in two or more successive sessions, and if, before the expiry of the session
immediately following the session or the successive sessions aforesaid, both Houses
agree in making any modification in the rule or both Houses agree that the rule
should not be made, the rule shall thereafter have effect only in such modified form
or be of no effect, as the case may be; so, however, that any such modification or
annulment shall be without prejudice to the validity of anything previously done
under that rule.