No benefit of ST Amnesty Scheme even if 50% of tax dues wasn’t paid prior to 31-12-2013 due to calculation error

Section 107, read with section 110, of the Finance Act, 2013 - Service Tax Voluntary Compliance Scheme, 2013 - Whether Service Tax Voluntary Compliance Encouragement Scheme, 2013 makes no difference between tax dues which are short-paid due to bona fide error and one which flows from deliberate inaction and there is no power for waiving or relaxing condition of depositing 50 per cent tax dues flowing from section 107 - Held, yes - Whether shortfall in payment of taxes under section 107 could not be accepted even after charging interest under section 110 - Held, yes - Whether tax payment less than 50 per cent of total declared tax dues prior to 31-12-2013, even if on account of bona fide calculation error, would amount to violation of section 107(3); declaration under impugned scheme was to be rejected - Held, yes [Para 8] [In favour of revenue]

Refer:[2014] 46 taxmann.com 244 (Gujarat)

HIGH COURT OF GUJARAT

Ramilaben Bharatbhai Patel

v.

Union of India