2021 (12) TMI 184

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ioner availing cenvat credit on trading of goods. The petitioner paid an amount of Rs. 2,29,61,536/- towards service tax. Apart from this, amounts of Rs. 1,16,51,272/- and Rs. 24,44,227/- were paid as interest and penalty respectively. The petitioner was served with a show cause notice dated 12.04.2019 whereby further amount of Rs. 9,86,53,074/- was sought to be recovered on account of cenvat credit. This amount included interest and penalty as well. Before the proceedings on the aforesaid show cause notice could proceed further, an amnesty scheme by way of Finance (No.2) Act, 2019 was introduced by the Central Government. The main objective of the scheme is to provide for the settlement of pending disputes related to indirect taxes. The p....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....portunity of personal hearing on 07.02.2020. The submissions made by the petitioner in the personal hearing could not find favour with the Designated Committee and thereafter Form SVLDRS-3 dated 26.02.2020 was also issued reiterating the computation and remarks as mentioned in SVLDRS-2. The petitioner by way of the present petition under Article 226 of the Constitution of India approached this Court challenging the computation made by Designated Committee. Notice of motion was issued on 17.03.2020. Owing to outbreak of Covid-19, the said writ petition got adjourned. In the meantime, petitioner was called for personal hearing by respondent No.1-Commissioner, Central GST, Gurugram pursuant to show cause notice dated 12.04.2019. The petition....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ation of tax dues while granting relief under the amnesty scheme. Accordingly, payments made under the head of interest and penalty cannot be deducted. Admittedly, the petitioner has deposited amounts of Rs. 2,29,61,536/- and further sum of Rs. 1,16,51,272/- on account of interest and Rs. 34,44,227/- as penalty, even prior to issuance of show cause notice. The question that arises for adjudication is as to whether the petitioner is entitled for credit of amount deposited under the head of interest and penalty while quantifying the amount payable under the scheme. Section 124 of the Finance Act provides for calculation of the relief available to the declarant and the same reads as follows:- "124. (1) Subject to the conditions specified i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....) more than rupees fifty lakhs, then, fifty per cent. Of the tax dues; (e) where the tax dues are payable on account of a voluntary disclosure by the declarant, then, no relief shall be available with respect to tax dues. (2) The relief calculated under sub-section (1) shall be subject to the condition that any amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the statement indicating the amount payable by the declarant: Provided that if the amount of pre-deposit or deposit already paid by the declarant exceeds the amount payable by the declarant, as indicated in the statement issued by the designated co....