CESTAT allows assessee’s
appeal, holds rejection of declaration filed under Service Tax Voluntary
Compliance Encouragement Scheme (VCES) on ground of mis-classification of
services as unsustainable; Notes that, while assessee categorised activity of
construction of residential and commercial complexes under 'construction of
complex service' and claimed abatement benefit under Notification No. 26/2012,
Revenue sought to disregard the declaration and classify said activity as
‘works contract service’ on ground that same were so disclosed for VAT
assessment purpose; Remarks, “(VCES) was framed by the Government with the
intention of encouraging voluntary compliance and payment of service tax” and
“declarations made under such scheme were to be accepted, by and large”;
Observes, total amount of consideration received has not been found to be
different from what was declared and Revenue has not produced any contract or
document indicating that assessee did not make full declaration of service tax
liability for the disputed period; Further, taking note of assessee's
contention that definition of works contract service under VAT law and Finance
Act, 1994, is different, holds that, different interpretation on classification
of services does not tantamount to substantial misdeclaration : Bangalore
CESTAT
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