VCES 2013: Even 6 days delay cannot be condoned

Brief of the case:

• The Hon’ble Kerala High Court in the above cited case held that Voluntary Compliance Encouragement Scheme (VCES) was in the nature of an Amnesty Scheme and, therefore, its provisions have to be strictly interpreted. Infact, the scheme was a settlement between the assessee and the department and from the terms of the settlement neither party can be permitted to retract.
• Therefore, even the marginal delay of 6 days in depositing the balance 50% of the tax declared due under the scheme cannot be condoned.
  

Facts of the case:

• The petitioner deposited 50% of tax liability declared in Voluntary Compliance Encouragement Scheme (VCES), 2013 amounting to Rs. 4,34,413/- on 30.12.2013 and the balance amount of 50% together with interest thereon was paid by him only on 06.01.2015.
• Department informed the petitioner that on account of delayed payment of the amount under the Voluntary Compliance Encouragement Scheme, 2013, the petitioner would be denied the benefit of the said Scheme, and recovery of service tax dues for the period April 2008 to March 2015 would be effected against the petitioner. The period of delay was only 6 days i.e. the balance 50% liability required to be paid under the scheme was paid on 06.01.2015 against the due date 31.12.2014 prescribed in the scheme.
• Aggrieved assessee filed writ petition before Kerala High Court.
  

Contention of the Petitioner: