Petition challenging SVLDRS Scheme refusal dismissed for lack of quantification determination.

The court dismissed the petition challenging the refusal to accept the petitioner's application under the SVLDRS Scheme due to the lack of a final quantification determination of the liability. The court found that the letter requesting payment from one of the petitioner's suppliers did not constitute a definitive determination of the amount owed. As a result, the respondents' decision to reject the petitioner's application was deemed justified, leading to the dismissal of the petition and disposal of any pending applications.

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Issues:
Challenge to recovery notices issued despite application under SVLDRS Scheme.

Analysis:
The petitioner filed a petition challenging the respondents' action of issuing recovery notices despite applying under the SVLDRS Scheme. The petitioner claimed that during an inquiry by the Anti Evasion CGST, Gurugram, it was revealed that an amount of Rs. 20 Lakhs was due as service tax liability. The petitioner deposited Rs. 2 lakhs and requested five installments to pay the remaining amount. Subsequently, the petitioner applied under the SVLDRS Scheme, but its application was not accepted as the due amount had not been determined. The petitioner argued that its application could not have been rejected based on a letter dated 24.09.2019, where one of its suppliers was asked to pay the due amount directly to the Central Goods and Service Tax Department.

The court noted that the letter in question did not provide a final quantification determination of the liability but merely presented a preliminary figure. Therefore, the court held that the action of the respondents in refusing to accept the petitioner's application under the SVLDRS Scheme was justified. Consequently, the petition was dismissed, and any pending applications were disposed of accordingly.

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