Tribunal upholds denial of refund claim under SVLDRS scheme, citing Finance Act, 2019.

The tribunal dismissed the appeal and upheld the department's decision to reject the refund claim under the SVLDRS scheme. The tribunal emphasized the non-refundable nature of payments made under the scheme as per Section 130 of the Finance Act, 2019, once the tax liability is settled. The decision aligned with the scheme's objective of final settlement without provisions for refunds and highlighted the appellant's failure to substantiate disagreement with the designated authority's calculations.

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Issues:
Refund claim rejection under SVLDRS scheme; Applicability of Section 124(2) and 130 of Finance Act, 2019 for refund denial.

Analysis:
The appellant, a service tax registrant, filed a refund claim under the SVLDRS scheme, seeking a refund of Rs.6,59,022. The claim was rejected by the department, stating that the appellant's tax liability was determined at Rs.32,03,701, which was paid by the appellant. The appellant argued that the excess payment should be refunded as it was beyond the payable liability. The appellant relied on a High Court decision to support their claim. However, the department contended that under the SVLDRS scheme, once the tax liability is paid, there is no provision for a refund. The department cited Section 130 of the Finance Act, 2019, which prohibits the refund of any pre-deposit or other deposit already paid. The tribunal analyzed the scheme's provisions, emphasizing that the scheme aims for a one-time settlement of past disputes and voluntary disclosures, with no provision for refunds once the declared duty is paid. The tribunal noted that the appellant failed to prove disagreement with the designated authority's quantification of payable amount, which was crucial for refund consideration. The tribunal upheld the order rejecting the refund claim, citing the non-refundable nature of payments made under the SVLDRS scheme as per Section 130 of the Finance Act, 2019.

In conclusion, the tribunal dismissed the appeal, affirming the order rejecting the refund claim under the SVLDRS scheme. The tribunal upheld the department's decision based on the provisions of Section 130 of the Finance Act, 2019, which deem any amount paid under the scheme as non-refundable once the tax liability is settled. The tribunal emphasized the scheme's objective of final settlement without provisions for refunds and the appellant's failure to substantiate their disagreement with the designated authority's calculations. The tribunal's decision aligned with the scheme's intent to provide a one-time resolution for tax disputes and voluntary disclosures, preventing refunds of payments made under the scheme.

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