TaxTMI 
TaxTMI 
2022 (6) TMI 865
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....es Act, 2017 (CGST Act). With effect from 1st July, 2017, petitioner registered itself under Goods and Services Tax Act (GST Act). 3. Petitioner received a summons dated 5th April, 2018 from Directorate General of GST Intelligence (DGGI) under section 174 of the CGST Act by which Director of petitioner was summoned to appear in person on 5th April, 2018 at 3.00 p.m and also tender evidence/documents mentioned therein because a case/inquiry about evasion of service tax was being conducted against petitioner. In pursuance of summons, petitioner's Director appeared before concerned officer and statement of Director was recorded. Petitioner also provided documents called for. 4. Subsequently, petitioner received a letter dated 5th February, 2019 from respondent No.2 summoning petitioner's Director to attend to record his statement and also to submit certain documents. Once again, statement of Director of petitioner was recorded. Similar summons dated 18th June, 2019 was received by petitioner and further statement was recorded on 25th June, 2019. Even as per respondents' case, in the statement recorded on 25th June, 2019, petitioner accepted liability of Rs.1,44,60,835/- on t....
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.... estimated amount shown in SVLDRS Form - 2A issued by respondent No.4. Strangely, respondent No.4 instead of accepting petitioner's Form-2-A, issued a letter dated 2nd February, 2020, which is impugned in this petition, rejecting the declaration. It will be useful to reproduce the said communication and the same is reproduced below. "OFFICE OF THE PRINCIPAL COMMISSIONER OF GST & CENTRAL EXCISE, MUMBAI EAST 9TH FLOOR, LOTUS INFO CENTRE, STATION ROAD, PAREL (EAST), MUMBAI -400012 TEL.022-24196302 Email: svldrs2019@[email protected] F.NO. CGST/ME/SVLDRS/App/294&206/Anjali/19-20 Mumbai dt. 02.2020 To, M/s. Anjali Services Pvt. Ltd. A-39, New Empire Industrial Estate, Kondivita Road, Andheri (East), Mumbai-400059 Ref: DIN No.20200267VM00006R5F82 Sub: Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Application ARN No.LD1811190000290 dt. 18.11.2019 & LD271190000921 dt. 27.11.2019 - reg. ********** M/s Anjali Services Pvt. Ltd. has filed two SVLDRS-1 applications having ARN No. LD1811190000290 dt. 18.11.2019 & LD2711190000921 dt. 27.11.2019 under the category Investigation and Sub-....
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....instance, a Draft Audit Report or the Final Audit Report has been issued on or before 30.06.2019. Similarly, a letter intimating duty demand has been issued by the department. These would include those cases also where the duty/tax demand undergoes a change only due to any clerical or calculation error. 4) On scrutiny of your case is it's become clear that SCN amount was higher than the amount quantified before 30.06.2019 indicating that quantification in the matter was not final by 30.06.2019. Also report of DGGI Mumbai case in both applications was same, hence appeared to be duplicate applications. 5) In view of the above both the SVLDRS-1 having ARNo.LD1811190000290 dt. 18/11/2019 & LD2711190000921 dt. 27.11.2019 are hereby rejected. (KUNAL KASHYAP) Jt. Commnr (SVLDRS) (M.V.S. Choudary) Pr. Commnr (SVLDRS) (Designated Committee) In our view, respondent No.4 has erred in rejecting petitioner's declaration. According to us, petitioner was an eligible person entitled to file a declaration. 9. Section 125 of the Finance Act, 2019 provides that all persons shall be eligible to make a declaration under the scheme except those ment....
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....reiterated the stand taken in the impugned communication. 13. When provisions of section 121 (r) read with clause (c) of section 123 read with section 124 of Finance Act, the Circular dated 12th December, 2019 and answer to FAQ 45 are considered, we can safely conclude that requirement under the scheme is admission of tax liability by the declarant during inquiry, investigation or audit. In the show cause notice dated 16th October, 2019, there is an admission from respondents that petitioner's Director in his statement dated 25th June, 2019 has admitted service tax liability amounting to Rs.144,60,835/- as payable on 5th April, 2018. Three things emerge from this: (a) There is an investigation/inquiry against the petitioner; (b) There is an admission by petitioner which means there is a written communication and; (c) Tax dues has been quantified at Rs.1,44,60,835/- before 30th June, 2019 in such written communication. 14. A show cause notice has been issued after 30th June, 2019, i.e, on 16th October, 2019 but that should make no difference to eligibility of petitioner. Eligibility shall be as it was on the relevant date, i.e, on 30th June, 2019 bec....
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.... 3 and 45 of the Frequently Asked Questions, a view can legitimately be taken that the requirement under the scheme is admission of tax liability by the declarant during inquiry, investigation or audit report. It is not necessary that the figures on such admission should have mathematical precision or should be exactly the same as the subsequent quantification by the authorities in the form of show-cause notice etc. post 30.06.2019. The object of the scheme is to encourage persons to go for settlement who had bonafidely declared outstanding tax dues prior to the cut off date of 30.06.2019. The fact that there could be discrepancy in the figure of tax dues admitted by the person concerned prior to 30.06.2019 and subsequently quantified by the departmental authorities would not be material to determine eligibility in terms of the scheme under the category of inquiry, investigation or audit. What is relevant is admission of tax dues or duty liability by the declarant before the cut off date. Of course the figure or quantum admitted must have some resemblance to the actual dues. In our view, petitioner had fulfilled the said requirement and therefore he was eligible to make the declara....