2018 (5) TMI 1236 – CESTAT NEW DELHI – TMI – Voluntary Compliance Entitlement Scheme (VCES) – time limitation – proceedings rejecting VCES application barred by limitation of time – Held that: – the CBEC vide circular dated 8.8.2013 has mandated that the show cause notice shall be given within 30 days of the date of filing of the said declaration or date of said circular whichever is later – In this case, admittedly, the show cause notice was handed over by the Service Tax department to the postal authorities on 9.9.2013 for delivery to the appellant. Thus, it is evident that the show cause notice has not been issued within 30 days from the date of issuance of the circular by CBEC.
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Proceedings initiated by the department for rejection of the VCES declaration cannot be sustained on the ground of limitation alone – appeal allowed – decided in favor of appellant. – Appeal No. ST/50515/2018-SM – A/51679/2018-SM[BR] – Dated:- 4-5-2018 – Mr. S.K. Mohanty, Member (Judicial) Shri M.K. G
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the adjudication order. Thus, feeling aggrieved with the impugned order, the appellant has filed this appeal before the Tribunal. 2. The ld. Advocate appearing for the appellant submitted that the show cause notice dated 6.9.2013 issued to the appellant is barred by limitation of time, in view of the Circular No. 170/5/2013-ST dated 8.8.2013 read with Circular No. 17589/2013 dated 25.11.2013 issued by the CBEC. He further submitted that rejection of declaration by the authorities below is not proper and justified, in view of the said circular inasmuch as the notice for rejection of VCES declaration has to be issued within 30 days from the date of filing of the same. He has relied on the decision of this Tribunal in the case of M/s Siddhi Vinayaka Enterprises Pvt. Lted. Vs. CST, Raipur – 2016 (43) STR 474 (Tri.-Del.) and M/s V.S. Enterprises Vs. CCE, Nagpur – 2017 (52) STR 151 (Tri.-Mumbai), to state that the show cause notice issued beyond 30 days from the date of circular issued by CB
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er. In this case, admittedly, the show cause notice was handed over by the Service Tax department to the postal authorities on 9.9.2013 for delivery to the appellant. Thus, it is evident that the show cause notice has not been issued within 30 days from the date of issuance of the circular by CBEC. Therefore, proceedings initiated by the department for rejection of the VCES declaration cannot be sustained on the ground of limitation alone. I find that in the decision relied on by the appellant, the juridical forums have held that time limit prescribed for issuance of the show cause notice has to be strictly adhered to and in absence of observance of fulfilment of such condition, the proceedings cannot be initiated, seeking rejection of the declaration by the appellant. 6. Therefore, I do not find any merits in the impugned order. Accordingly, after setting aside the same, I allow the appeal in favour of the appellant. (Pronounced in Court on 4.5.2018) – Case laws – Decisions – Judgem
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