2021 (12) TMI 618 - HC - Central Excise

Interpretation of Tax Relief Scheme, Petitioner's Appeal Remanded for Form Errors

The court interpreted the Sabka Vishwas Legacy Disputes Resolution Scheme, 2019, focusing on tax relief calculation errors in the SVLDRS forms. The ... Sabka Vishwas Legacy Disputes Resolution Scheme, 2019 - discharge certificate (SVLDRS-4) - inadvertent technical/secretarial error in benefit calculation under SVLDRS - acceptance of claim by Revenue - remand and de novo adjudication kept in abeyanceDischarge certificate (SVLDRS-4) - acceptance of claim by Revenue - inadvertent technical/secretarial error in benefit calculation under SVLDRS - Petitioner's entitlement under SVLDRS and issuance of discharge certificate following Revenue's acceptance of petitioner's calculations. - HELD THAT: - The respondents filed a counter-affidavit accepting the factual position stated by the petitioner that the amount shown as paid by the petitioner is correct and that an erroneous lesser tax relief figure in the SVLDRS-2/SVLDRS-3 forms was the result of an inadvertent error. Having accepted the petitioner's position, the respondents conceded that no further tax is payable by the petitioner under the scheme. In consequence, the High Court allowed the writ petition and directed the first respondent to issue the SVLDRS discharge certificate (SVLDRS-4), either manually or electronically, within the time fixed by the Court. The Court also recorded appreciation of the fair approach adopted by Revenue and disposed of the interlocutory W.M.P. as closed. [Paras 3, 4, 6]Writ petition allowed; respondents to issue discharge certificate (SVLDRS-4) within eight weeks; W.M.P. disposed of; no costs.Final Conclusion: The petition is allowed on the respondents' admission that the petitioner's SVLDRS entitlement was correctly stated; the first respondent is directed to issue the SVLDRS discharge certificate within eight weeks, the connected W.M.P. is closed and there shall be no order as to costs. Issues:1. Interpretation of the Sabka Vishwas Legacy Disputes Resolution Scheme, 2019.2. Error in tax relief calculation under the SVLDRS scheme.3. Disputed tax balance and issuance of SVLDRS forms.4. Request for discharge certificate and rectification of errors.5. Stay on proceedings pending further instructions.Interpretation of the Sabka Vishwas Legacy Disputes Resolution Scheme, 2019:The writ petition involved the interpretation of the Sabka Vishwas Legacy Disputes Resolution Scheme, 2019 (SVLDRS) introduced under Chapter V of the Finance Act, 2019 to settle disputed legacy tax levies arising due to the implementation of the Goods and Services Tax (GST) regime from 01.07.2017. The petitioner, represented by Mr. G.Natarajan, argued that they fell under the category of 'Litigation' as their appeals were pending as of 30.06.2019, specifically related to service tax. The issue revolved around the correct application of the SVLDRS scheme and the calculation of tax relief percentages under the scheme.Error in tax relief calculation under the SVLDRS scheme:The petitioner highlighted an error in the SVLDRS-2 form issued by the designated committee, where the tax dues were inaccurately stated, leading to a discrepancy in the tax relief amount. Despite the petitioner having paid a certain sum of tax, the form incorrectly showed a balance due, attributed to a technical or secretarial error. This discrepancy was further compounded in the SVLDRS-3 form, causing confusion regarding the actual tax relief entitlement of the petitioner.Disputed tax balance and issuance of SVLDRS forms:The petitioner's appeal was disposed of, and the matter was remanded to the second respondent for further action. The figures regarding the tax paid by the petitioner were undisputed, but errors in the SVLDRS forms led to confusion regarding the tax relief calculations. The petitioner sought rectification of these errors to obtain a discharge certificate under SVLDRS-4, which was crucial for resolving the pending tax disputes.Request for discharge certificate and rectification of errors:The court acknowledged the inadvertent errors in the SVLDRS forms and the need for rectification to ensure the petitioner received the entitled tax relief and a discharge certificate. The respondents, through a counter-affidavit, confirmed the correctness of the petitioner's case, signaling agreement on the tax liability issue. Consequently, the court directed the first respondent to issue a discharge certificate to the petitioner within eight weeks, thereby resolving the matter in favor of the petitioner.Stay on proceedings pending further instructions:While recognizing the need to issue notice regarding admission, the court decided to stay the proceedings before the second respondent to prevent any irreversible actions until further instructions were obtained from the revenue counsel. The court scheduled the next listing for further proceedings and emphasized the importance of resolving the matter effectively and fairly based on the submissions made by both parties.