VCES, 2013 - Payment of 'tax dues' through CENVAT Credit before ST VCER, 2013 were notified.
THE Service Tax VCES, 2013 came into effect on 10.05.2013 and the Service Tax Voluntary Compliance Encouragement Rules, 2013 came into force w.e.f 13.05.2013 by Notification 10/2013-ST
Rule 6 of the Rules reads-
6. Payment of tax dues.-
(1) The tax dues payable under the Scheme along with interest, if any, under section 107 of the Act shall be paid to the credit of the Central Government in the manner prescribed for the payment of service tax under the Service Tax Rules, 1994.
(2) The CENVAT credit shall not be utilised for payment of tax dues under the Scheme.
As the aforesaid condition of “non-utilisation of CENVAT credit” for payment of tax dues under the Scheme was formulated only on 13.05.2013, in case a declarant has paid “such tax dues” by utilizing CENVAT credit during the period 10.05.2013 to 12.05.2013, what should he do? Take a re-credit in his CENVAT account and pay afresh in cash? Re-credit, the department will not allow by citing the LB decision in BDH Industries [2008-TIOL-1211-CESTAT-MUM-LB]. So, what is the solution.
Will the CBEC please clarify?