CESTAT upholds Finality of VCES

The Chennai Bench of the Customs, Excise and Service Tax Appellate Tribunal substantially set aside service tax demands relating to construction services rendered to educational institutions, Government welfare projects and proceedings initiated by reopening an accepted VCES declaration. 

The Tribunal held that once a VCES declaration is accepted and no proceedings are initiated within the statutory period, it attains finality and cannot subsequently be reopened merely because the Department computes a higher tax liability.