Form SVLDRS-3 Set Aside; Interest Included in "Any Amount Paid" Under Finance Act 2019; Reconsideration Ordered.

The HC set aside the Form SVLDRS-3 issued by the Designated Committee, ruling that "any amount paid" under Section 124(2) of the Finance Act, 2019 includes interest. The Designated Committee must reconsider the Petitioner's declaration, issue a new Form SVLDRS-3, and provide a hearing opportunity. Each party bears its own costs.

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Issues Involved:
1. Validity of Form SVLDRS-3 issued by the Designated Committee.
2. Eligibility for deduction of interest paid under Section 124(2) of the Finance Act, 2019.
3. Interpretation of "any amount paid" under Section 124(2) of the Finance Act, 2019.

Issue-wise Detailed Analysis:

1. Validity of Form SVLDRS-3 issued by the Designated Committee:
The Petitioner challenged the issuance of Form SVLDRS-3 dated 19 February 2020 by the Designated Committee, which demanded Rs. 37,67,015/-. The Petitioner argued that the amount of Rs. 40,28,670/- paid as interest should be deducted under Section 124(2) of the Finance Act, 2019. The Designated Committee, however, did not accept this and issued Form SVLDRS-3 without adjusting the interest amount.

2. Eligibility for deduction of interest paid under Section 124(2) of the Finance Act, 2019:
The Petitioner contended that the interest amount paid before the issuance of the Show Cause Notice should be deducted under Section 124(2). The Designated Committee argued that only the tax amount paid under the Accounting Code for "Tax Receipts" (Rs. 1,09,06,948/-) could be considered for deduction, not the interest amount paid under "Other Receipts (Interest)" (Rs. 40,28,670/-).

3. Interpretation of "any amount paid" under Section 124(2) of the Finance Act, 2019:
The Court examined whether "any amount paid" in Section 124(2) includes amounts paid as interest. The Court referred to several precedents, including Schlumberger Solutions Pvt. Ltd. vs. Commissioner Central GST and Others, M/s Vamsee Overseas Marine Private Limited vs. The Commissioner of Service Tax, and Eureka Fabricators Pvt. Ltd. vs. Union of India and Ors. These cases interpreted "any amount paid" to include amounts paid as tax, interest, or penalty, without distinguishing between different heads.

Judgment:
The Court concluded that the phrase "any amount paid" in Section 124(2) does not distinguish between amounts paid under different heads and includes tax, interest, or penalty. The Court held that the Designated Committee should have given due credit for the interest amount paid by the Petitioner before the issuance of the Show Cause Notice. Consequently, the Form 3 issued by the Designated Committee was set aside. The Designated Committee was directed to reconsider the Petitioner's declaration in SVLDRS-1 and issue a fresh SVLDRS-3 after giving an opportunity for a hearing to the Petitioner. The Petition was allowed, and each party was directed to bear its own costs.

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