TaxTMI 
TaxTMI 
TaxTMI 
2020 (9) TMI 1069
X X X X Extracts X X X X
X X X X Extracts X X X X
.... service tax assessee, seeks to direct the first respondent to accept Exts.P15 to P17 declarations filed by the petitioner and to grant the benefit of SVLDR Scheme in respect of the tax arrears disclosed in Exts. P1 to P3 returns and Ext.P3A revised statement. 2. The petitioner-Company is engaged in the construction of residential and commercial projects in Kerala. Petitioner is a registered assessee of service tax. From 2016-'17 onwards, the petitioner could not file returns and pay service tax promptly within the stipulated time. The petitioner states that nevertheless all transactions were duly recorded in their books of accounts. The petitioner belatedly filed returns for the period from April 2016 to June 2017. Ext.P1 is the relev....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ion', 'arrears of tax', 'enquiry and investigation' and 'voluntary disclosure'. In the case of voluntary disclosure a person who has not filed any return nor paid any taxes can voluntarily disclose his tax liability to the department. 'Arrears of tax' category covers those cases where return is filed, but tax not paid. The Scheme provides for substantial tax reliefs including 100% waiver of penalty and interest. 5. The petitioner therefore filed Exts.P15 to P17 declarations under the Scheme. The first respondent, as per Ext.P18 letter, rejected the declarations stating that as per Section 125 (1) (e) of the Finance Act, 2019, a person who has been subjected to an enquiry or investigation or audit, and the amount of duty involved in the sai....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d by Exts.P15 to P17 declarations. 8. The respondents 1 and 2 stated that the Designated Committee had considered the petitioner's declarations and found them non-acceptable under the Scheme. The Designated Committee could not have found the petitioner to be eligible to make a declaration under the Scheme in view of section 125 of the Finance Act. There is no illegality or irregularity in the Designated Committee issuing Ext.P18 communication rejecting the declarations of the petitioner, contended the standing counsel appearing for the respondents 1and 2. 9. I have heard the learned counsel appearing for the petitioner and the learned standing counsel appearing for the respondents. 10. The SVLDR Scheme has been introduced by the Governme....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019; (f) a person making a voluntary disclosure,-- (i) after being subjected to any enquiry or investigation or audit; or (ii) having filed a return under the indirect tax enactment, wherein he has indicated an amount of duty as payable, but has not paid it; (g) who have filed an application in the Settlement Commission for settlement of a case; (h) persons seeking to make declarations with respect to excisable goods set forth in the Fourth Schedule to the Central Excise Act, 1944. (2) A declaration under sub-section (1) shall be made in such electronic form as may be prescribed." 12. The contention of the respondents is that the pet....
X X X X Extracts X X X X
X X X X Extracts X X X X
....iry, investigation or audit; or audit report etc." The term "quantified" would therefore include duty liability admitted by the person during enquiry, investigation or audit or audit report. 14. The legacy dispute sought to be resolved by the petitioner relates to three periods namely April-September 2016, October'16-March'17 and April-June 2017. The petitioner had filed returns for these periods on 21.06.2017, 28.09.2017 and 31.10.2017 respectively, as per Exts.P1 to P3. It seems that tax was in arrears for periods anterior thereto also. The respondents initiated verification of accounts for the period from 2012-13, only on 07.09.2017, after the petitioner filed Ext.P1 return. Exhibit P18 letter dated 16.12.2019 by which the petition....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f the Finance Act, 2019. 17. The Sub ka Vikas (Legacy Dispute Resolution) Scheme, 2019 has been formulated by the central government with a bold endeavour to unload the baggage relating to the legacy taxes, viz., Central Excise and Service Tax that have been subsumed under GST and allow business to make a new beginning, and focus on GST. The SVLDR Scheme focuses on small taxpayers as also corporate entities. The Scheme also contemplates voluntary disclosure by the assessees. The Scheme takes in its ambit almost all pending disputes including call book cases, except for few categories. 18. The Paragraph 8 of Ext.P9 Circular, would indicate that while framing the Scheme, the respondents were not oblivious of the fact that in cases of volunt....