Vces

As per the provision the person who has filed return and disclosed his true liability but has not paid the disclosed amount of service tax shall not be eligible to make declaration of Tax dues.

So in case the assessee has hidden its liability then VCES wont be applicable for him, but if its not concealment of income then He can opt for VCES.

Yes, benefit of VCES can be taken by disclosing the true liability and paying taxes.