VCES Order is appealable

Case: Barnala Builders & Property Consultants Vs The Deputy Commissioner of Central Excise & Service Tax (P&H)

 

Facts:  The assessee submitted a declaration under VCES scheme which was rejected by the department. The department argued that Vide Circular no. 170/5/2013-ST dated 08-08-2013, the CBEC had clarified that the VCES scheme does not have a statutory provision for filing of appeal against the order for rejection of declaration under Sec 106(2) by the designated authority.

Held by the High Court in favour of assessee:

• The VCES scheme has been incorporated into the act and is thus part and parcel of the Finance Act.
• Thus all the provisions of Finance Act, unless specifically excluded, apply to proceedings under this scheme.

• Instructions issued by CBEC on 08-08-2013 that orders under VCES scheme are not appealable held to be invalid.
• Assessee is allowed to file an appeal and the appeal, if filed, shall be considered and decided within a fortnight.