Court allows correction for wrongly rejected Sabka Vishwas Scheme claim

The Court found that the petitioner's claim under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was wrongly rejected due to an inadvertent error in declaring the penalty amount in Form SVLDRS-1. The Court concluded that this error did not disqualify the petitioner from availing benefits under the Scheme. The petitioner was directed to submit a correction application within 15 days, and the authorities were instructed to review the claim within 2 months. The Court clarified that the petitioner could still seek other benefits under the Scheme besides those related to the penalty issue.

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Issues:
1. Assessment of liability to pay service tax under the Finance Act, 1994 for the period 2009-2014.
2. Imposition of penalty under the 1st Proviso to Section 78 of the Finance Act, 1994.
3. Eligibility of the petitioner for relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
4. Rejection of the petitioner's claim under the Scheme 2019 due to incorrect declaration of penalty in Form SVLDRS-1.

Analysis:
1. The petitioner, Assam Cricket Association, was found liable to pay service tax for the period 2009-2014. A penalty of Rs. 11,48,82,644.00 was imposed on them by the Commissioner GST and Central Excise, Guwahati. The petitioner appealed this decision before the Custom, Excise and Service Tax Appellate Tribunal, East Regional Bench, Kolkata, and paid 75% of the levied amount as mandatory deposit.

2. The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was introduced under Chapter-V of the Finance Act, 1994. The petitioner claimed to be eligible for relief under Section 124(1)(a)(ii) of the Finance Act, 1994, which allows relief up to 50% of tax dues if the amount due exceeds Rs. 50 lakhs. The petitioner did not fall under the exceptions mentioned in Section 125(1)(a) to (h), making them eligible to make a declaration under the Scheme 2019.

3. To claim the benefit under the Scheme 2019, claimants were required to submit Form SVLDRS-1, which included a column for mentioning any previously imposed penalty. The petitioner mistakenly stated the penalty as zero in the form, despite a penalty of Rs. 11,48,82,644.00 being imposed on them. Due to this error, the authorities rejected the petitioner's claim under the Scheme 2019.

4. The main issue before the Court was whether the petitioner's claim under the Scheme 2019 could be rejected solely based on the incorrect declaration of penalty in Form SVLDRS-1. The Court analyzed the nature of the mistake and concluded that the petitioner's error was inadvertent and did not amount to claiming an undue benefit. The Court found no provision in the Scheme 2019 that disallowed benefits to those with imposed penalties. The parties agreed that the petitioner could submit an application to correct the mistake in the form, and the authorities would consider the claim accordingly.

5. The Court disposed of the petition by requiring the petitioner to submit an application for correction within 15 days. The authorities were directed to pass an order on the application within 2 months. The Court also clarified that the petitioner could claim any other entitled benefits under the Scheme 2019 apart from Section 124(1)(a)(ii).

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