TaxTMI 
TaxTMI 
2021 (2) TMI 406
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.... it was registered as such under the Finance Act, 1994. 4. Respondent No.3 had initiated enquiry against the petitioner for alleged short payment of service tax for the period from April 2014 to March 2017. In this connection, petitioner received letters from the respondents. Responding to such letters, petitioner wrote letter dated 24.06.2019 to the Superintendent, Central Excise and Goods and Services Tax (GST), Palghar stating that out of the total liability of Rs. 20,88,947.00 towards service tax dues, it had already made payment of Rs. 18,21,958.00, further stating that the remaining dues would be paid as early as possible. 5. In the meanwhile, Central Government introduced the scheme through the Finance (No.2) Act, 2019 to bring to an end pending litigations pertaining to central excise and services tax under the erstwhile indirect tax regime which stood subsumed under GST. 6. To avail the benefit under the scheme, petitioner filed declaration on 30.12.2019 under the category of "investigation, enquiry or audit" with sub-categorization of "investigation by commissionerate". Amount of service tax dues was mentioned as Rs. 20,88,947.00. Petitioner also disclosed pre-deposit ....
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....the Central Board of Indirect Taxes and Customs (briefly "the Board" hereinafter) whereafter it was held as under :- "47. Reverting back to the circular dated 27th August, 2019 of the Board, it is seen that certain clarifications were issued on various issues in the context of the scheme and the rules made thereunder. As per paragraph 10(g) of the said circular, the following issue was clarified in the context of the various provisions of the Finance (No.2) Act 2019 and the Rules made thereunder :- Cases under an enquiry, investigation or audit where the duty demand has been quantified on or before the 30th day of June, 2019 are eligible under the scheme. Section 2(r) defines "quantified" as a written communication of the amount of duty payable under the indirect tax enactment. It is clarified that such written communication will include a letter intimating duty demand; or duty liability admitted by the person during enquiry, investigation or audit; or audit report etc. 48. Thus as per the above clarification, written communication in terms of section 121(r) will include a letter intimating duty demand or duty liability admitted by the person during enquiry, investigation or ....
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....ry or investigation or audit has started but the tax dues have not been quantified whether the person is eligible to opt for the Scheme? Ans. No. If an audit, enquiry or investigation has started, and the amount of duty/duty payable has not been quantified on or before 30th June, 2019, the person shall not be eligible to opt for the Scheme under the enquiry or investigation or audit category. 'Quantified' means a written communication of the amount of duty payable under the indirect tax enactment [Section 121(r)]. Such written communication will include a letter intimating duty demand; or duty liability admitted by the person during enquiry, investigation or audit; or audit report etc. [Para 10(g) of Circular No 1071/4/2019CX dated 27th August, 2019]." * * * * "Q45.With respect to cases under enquiry, investigation or audit what is meant by 'written communication' quantifying demand ? Ans. Written communication will include a letter intimating duty/tax demand or duty/tax liability admitted by the person during enquiry, investigation or audit or audit report etc." 15. Finally in Saksham Facility Private Limited Vs. Union of India, 2020-TIOL-2108-HC-MUM-ST, where a similar i....
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....6.2019, we find that there is a clear acknowledgment by the petitioner that the total outstanding service tax dues was Rs. 20,88,947.00 which admission is prior to the cut off date of 30.06.2019. That being the position, it cannot be said that service tax dues were not quantified on or before 30.06.2019 (quantification as per the scheme). 18. That apart, in Thought Blurb (supra) we have held that when there is a provision for granting personal hearing in a case where the declarant disputes the estimated amount, it would be in complete defiance of logic and contrary to the very object of the scheme to reject a declaration on the ground of being ineligible without giving a chance to the declarant to explain as to why its declaration should be accepted and relief under the scheme be extended to him. It was held as under :- "51. We have already discussed that under sub sections (2) and (3) of section 127 in a case where the amount estimated by the Designated Committee exceeds the amount declared by the declarant, then an intimation has to be given to the declarant in the specified form about the estimate determined by the Designated Committee which is required to be paid by the decl....