AI Drafter 
TaxTMI 
TaxTMI 
2022 (12) TMI 603
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....re being disposed. W.P.No.11785 of 2020 has been filed by M/s. Win Power Engineering (P) Ltd., represented by its Director Shri. T.K. Kumar. 2. W.P.No.12957 of 2020 and W.P.Nos.3320 & 3322 of 2022 have been filed by M/s. True Value Homes India Pvt. Ltd., represented by its Managing Director and Chairman N. Ravichandran. 3. Issues involved in W.P.No.11785 of 2020 and W.P.No.12957 of 2020 are identical. These two writ petitions have been filed by the respective petitioners for the following relief:- W.P.No.11785 of 2020 (Win Power Engineering (P) Ltd.) W.P.No.12957 of 2020 (True Value HomesIndiaPvt. Ltd.) For issuance of a writ of Certiorarified Mandamus calling for the records leading to the issue of impugned order of rejection of SVLDRS declaration filed vide ARN No.1301200003572 dated 13.01.2020 and process for issuance of Discharge Certificate in SVLDRS Form 4 as the requisite liability of more than 50% of the tax dues as per the said Scheme has already been paid by the petitioner Writ petition has been filed to issue a writ of Certiorarified Mandamus calling for the records pertaining to the impugned rejection order passed by the respondent in respect of applic....
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.... Rao Jayaprakash Vs. The Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 and others, dated 23.02.2022 in W.A.No.2450 of 2021. 11. By the said decision, the Division Bench of this Court has confirmed the decision of the learned Single Judge of this court in W.P.No.12635 of 2020 and thus dismissed the appeal against order dated 17.09.2020 in the said Writ Petition. 12. Pursuant to the same, a note was prepared and placed beforethe Hon'ble Chief Justice. The then Hon'ble Chief Justice vide Order dated 24.03.2022 ordered for grouping of these four Writ Petitions before a Division Bench for a final disposal. Thus, these cases are before us. 13. We have considered the arguments advanced by Mr.Vijay Narayanan, the learned Senior Counsel assisted by Mr.AbishekJenasenan, the learned counsel for the petitioner in W.P.Nos.12957 of 2020 and W.P.Nos.3320 & 3322 of 2022 and Mr.G.Natarajan, the learned counsel for the petitioner in W.P.No.11785 of 2020. 14. We have also considered the arguments advanced by Mr.A.P.Srinivas, the learned Senior Standing Counsel and Mr.H.Siddarth, Junior Standing Counsel (Customs and GST) for the second respon....
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....s confirmed by the Division Bench in W.A.No.2450 of 2021 vide its order dated 23.02.2022. The Division Bench has examined the issue and concluded as follows:- "11. On appreciation of the factual matrix of the case, this court finds that there are no merits in this writ appeal for the simple reason that on 28.05.2019, a search was conducted in the premises of the appellant, pursuant to which, the appellant submitted a letter dated 13.06.2019 admitting such investigation and produced certain documents in continuance of the same. When such being the case, the appeal is hit by the provisions of Clause 121(r) and 125 (1) (e) of the Scheme, thereby making himself ineligible to invoke section 127(2) of the scheme. The relevant clauses contained under the scheme are reproduced hereunder:- "121. In this scheme, unless the context otherwise requires:- (r) "quantified", with its cognate expression, means a written communication of the amount of duty payable under the indirect tax enactment" 125. (1) All persons shall be eligible to make a declaration under this Scheme except the following, namely (e) who have been subjected to an enquiry or investi....
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....uently we dismiss this writ appeal. No costs. Connected miscellaneous petition is closed." 19. It was in this background, by an order dated 09.03.2022 in these four writ petitions, a Single Judge made a reference to be answered by the Division Bench. The reason for making the reference is as follows:- "3. However, before taking up the cases for hearing, M/s. M.Sheela, learned Senior Panel Counsel for Central Government, appearing for the respondents has brought to the notice of this Court about the recent decision of the Hon'ble Division Bench of this Court made in W.A.No.2450 of 2021 dated 23.02.2022 in the case of Vital Rao Jayaprakash Vs. The Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 & others. 4. By relying upon the said decision, the learned Senior Panel Counsel appearing for the respondents would submit that, even on maintainability of these writ petitions, the issue has been decided by the writ court, which has been confirmed by the Hon'ble Division Bench, where the stand taken was that, the Scheme itself was over by 30.06.2020, before which, if writ petition was filed for any reason, that could be enter....
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....the Hon'ble Division Bench for the said purpose. 8. Hence, I request the Registry to place the matter before the Hon'ble Chief Justice for taking an appropriate decision." 20. The respective petitioners filed applications under SVLDRS, 2019 and the following two writ petitions on the below mentioned dates:- W.P.No. Name Date of application Date of Filing of the respective Writ Petitions. 11785 of 2020 Win Power Engineering Pvt. Ltd. 09.11.2019 13.01.2020* 27.08.2020 True Value Homes Pvt. Ltd. 12957 of 2020 31.12.2019** 14.09.2020 (*On the same date applications were auto rejected in the system which have been impugned in these two writ petitions). 21. If order dated 17.09.2020 of the learned Single Judge in W.P.No.12635 of 2020 as affirmed by the Division Bench in Vital Rao Jayaprakash Vs. The Designated Committee, is to be accepted as the binding precedent, W.P.No.11785 of 2020 and W.P.No.12957 of 2020 are to be dismissed without further discussion. 22. We are however of the view, that the rejection of applications filed by the respective petitioner....
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.... the declared tax dues." 27. The salient feature of the SVLDRS, 2019 are as under:- a. Total waiver of interest and penalty. b. Immunity from prosecution. c. Cases pending in adjudication or appeal, a relief of 70% from the duty demand if it is rupees fifty lakh or less and 50% if it is more than rupees fifty lakhs. d. The same relief for cases under investigation and audit where the duty involved is quantified on or before 30th June, 2019. e. In case of an amount in arrears, the relief offered is 60% of the confirmed duty amount if the same is rupees fifty lakhs or less and it is 40% in other cases. f. In cases of voluntary disclosure, the declarant will have to pay the full amount of disclosed duty. 28. Further, the Central Board of Indirect Taxes and Customs has issued instructions vide C.B.I&C. Instruction No.1/2021-CX, dated 17.03.2021 empowering the concerned Designated Committees to manually process the declarations in cases where the High Courts remanded the matter for fresh consideration. 29. Thus, merely because it was intended that the scheme should result in closure of cases with defaulters paying the amount....
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.... was extended from 31.12.2019 to 15.01.2020. Due to outbreak of COVID 19 pandemic, the last date for making payment was extended to 30.06.2020. Thus, various factor contributed to the longevity of the scheme being extended. 34. Apart from outbreak of Covid-19, litigations have ensured that the scheme did not close for those who have opted to settle their tax due under SVLDRS, 2019 by filing Declarations on or before the deadline of 31.12.2019 which was extended to 15.01.2020. 35. We are therefore of the view, if the Declarations were filed for settling the tax case under SVLDRS, 2019 in time but were rejected at the threshold, an applicant whose application was rejected cannot be left without any remedy as the right to have the case settled under the SVLDRS, 2019 is a substantive right. 36. We however, make it clear that the right to redress a grievance against rejection of Declaration under SVLDRS, 2019 is subject to a caveat that the applicant whose Declaration was rejected under SVLDRS, 2019, was indeed entitled to file a Declaration under SVLDRS,2019. 37. In other words, if an applicant was barred from filing aDeclaration under SVLDRS, 2019, such applicant cannot be....
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....make it clear that the challenge to Show Cause Notice No.47 of 2020 dated 25.09.2020 in W.P.Nos.3320 of 2022 and the challenge to the impugned Notification No.22/2014-ST dated 16.09.2014 in W.P No.3322 of 2022 are without merits. 47. The second respondent, Principal Additional Director General, Directorate General of Goods and Service Tax Intelligence in W.P.Nos.3320 of 2020 who has issued the impugned Show Cause Notice No.47 of 2020 dated 25.09.2020 has arrived at the total tax payable as Rs. 37,84,41,930 /- by the petitioner. 48. The challenge to the impugned Show Cause Notice No.47 of 2020 dated 25.09.2020 in W.P No. 3320 of 2022 is based on the challenge to the Notification No.22/2014-ST dated 16.09.2014 in W.P No. 3322 of 2022. 49. Though, these two writ petitions were not argued at length, we make it clear that that the second respondent, the Principal Additional Director General, Directorate General of Goods and Service Tax Intelligence, is a Central Excise Officer. 50. The second respondent was therefore competent to issue the impugned Show Cause Notice No.47 of 2020 dated 25.09.2020 under Section 73 of the Finance Act, 1994 to the petitioner. Whether the Show C....
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....the Board under Section 2(b) of the Central Excise Act, 1944 and Rule 3 of the Service Rules, 1994 read with Section 65(4) of the Finance Act, 1994 as it stood during the relevant period. 181. By virtue of the Notification No.7/2004C.E. (N.T.), dated 11.03.2004, the officers specified in Column (2) of the Table to the said Notification were appointed as the "Central Excise Officers" and were invested with the powers to be exercised by them "throughout the territory of India" as are exercisable by the Central Excise Officer of the corresponding rank as specified in the Column (3) of the said Table, such powers being the powers of a Central Excise Officer conferred under Chapter V of the Finance Act, 1994. The Table to the said Notification reads as under:- S.No. Designation Jurisdiction 1. Director General, Central Excise Intelligence Chief Commissioner of Central Excise for of India 2. Additional Director, Central Excise Intelligence Commissioner of Central Excise or whole of India 3. Additional Director, Central Excise Intelligence Additional Commissioner of Central Excise for whole of India 4. Joint Director, Centra....
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....e applicable to service tax by Section 83 of the Finance Act, the Central Government directed that the powers exercisable by the Central Excise and Customs under the provisions of Section 83A read with the Notification of the Government of India in the Ministry of Finance (Department of Revenue) No.16/2007-S.T., dated 19.04.2007 [G.S.R.No.303(E) dated 19.04.2007, shall be exercised by the Chief Commissioner of Central Excise for the purpose of assigning the adjudication of cases, under the provisions of the said Finance Act or Rules made thereunder, within his jurisdiction. 185. Similarly, similar powers were vested with the officers of Directorate General of Audit, Customs and Central Excise vide Notification No.28/2008-C.E. (N.T.) dated 05.06.2008 by the Board in exercise of the powers conferred by Section 2(b) of the Central Excise Act, 1944 read with Rule 3(1) and (2) of the Central Excise Rules, 2002. 186. Similar Notifications have been issued, specifically, by Notification No.14/2017 - C.E. (N.T.), dated 09.06.2017 issued in exercise of powers conferred by Section 37A of the Central Excise Act, 1944 read with Section 83 of the Finance Act, 1994 and in super....
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.... 190. Therefore, without doubt, the officers from the Directorate are "Central Excise Officers" as they have been vested with the powers of central exercise officers. 191. Thus, the definition of "Central Excise Officer" in Section 2(b) of the Central Excise Act, 1944 was made applicable for Section 73 of Chapter V of the Finance Act, 1994 which prescribes a machinery for recovery of service tax not levied or paid or short-levied or short-paid or erroneously refunded. 192. As mentioned above, under Rule 3 of the Service Tax Rules, 1994, the Board can appoint any other officer to exercise power within the "local limits". However, that would not mean that the officers of "Directorate of Central Excise Intelligence (DGCEI) [presently The Directorate of GST Intelligence]" who are already "Central Excise Officers" under Notification No.38/2001-C.E. (N.T), dated 26.06.2001 for whole of India cannot exercise power pan India. Notification No.22/2014-ST dated 6.09.2014 is to be read in conjunction with Notification No.38/2001- C.E. (N.T), dated 26.06.2001. 193. Therefore, the 2nd argument advanced on behalf of the petitioners as far as jurisdiction to issue S....
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....ve to be dropped. 60. Similarly, if the petitioner in W.P No. 11785 of 2020 succeeds, the proceedings in SCN.No.06/2020(ADC) vide dated 26.02.2020 initiated by the Additional Commissioner, Office of the Commissioner of GST and Central Excise, Audit II Commissionerate will also have be dropped. 61. We shall now deal with W.P.Nos.11785 & 12957 of 2020.The respective petitioners have challenged the orders of the Designated Committee (hereinafter referred to as "The Designated Committee"), the relevant authority under the Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019 ("SVLDRS, 2019" in short). Before, proceeding further, it will be useful to refer to the object of the SVLDRS, 2019. 62. The SVLDRS, 2019 was introduced in the Union Budget under Chapter V of the Finance Bill, 2019 presented on 05.07.2019. It was introduced to de-clog the system and to pave a way to recover the tax dues of errant, recalcitrant taxpayer and those taxpayers who were in litigation with the government. 63. Under the SVLDRS, 2019, an amnesty scheme was devised to facilitate such tax payers to pay a percentage of the tax dues under specified central laws which were earlier subsumed under th....
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....otice under indirect tax enactment and the final hearing has taken place on or before the 30th day of June, 2019; (d) who have been issued a show cause notice under indirect tax enactment for an erroneous refund or refund; (e) who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said 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. 71. Thus, SVLDRS, 2019 seeks to achieve twin objectives. It allows the department to close pending cases and recover a percentage of the tax/duty arrears/dues from those assesses who are in arrears and also allows them ....
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....gly denied the benefit of SVLDRS,2019 at the threshold. We shall refer to the quantification in the said letter dated 24.10.2018 later in this order. 80. The facts on record indicate that the petitioner in W.P.No.11785 of 2020 had earlier filed a Declaration under the SVLDRS, 2019 on 09.11.2019 in ARN No.0911190000206 for the period between April 2017 to June 2017. The application was earlier rejected on the ground of ineligibility stating that the "audit quantified the tax dues after 30.06.2019." 81. The petitioner thereafter filed a fresh a Declaration once again for settling the dispute under the SVLDRS, 2019 on 13.01.2020 for the same period once again perhaps on account of extension of time for filing Declaration vide Notification No. 1/2020 C.E. (N.T.), dated 14.05.2020. The said Declaration also came to be rejected vide the impugned order for the same reason as was stated when the earlier Declaration was rejected. 82. In W.P. No.12957 of 2020, a summons was issued on 23.04.2019 to the petitioner to appear before the authority thereunder on 07.05.2019. The petitioner was called upon to submit various documents. In particular, the petitioner was asked to submit docume....
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.....P.No.12957 of 2020) had quantified the tax dues payable by them before the cut off date of 30.6.2019. Therefore, it was submitted that the applications filed by the respective petitioners were in consonance with the SVLDRS, 2019 (i.e. Chapter V of the Finance Act, 2019) read with SVLDRS Rules, 2019. 88. It is the specific case of the respective petitioners that the tax dues declared by them in their communications dated 24.10.2018 and 07.05.2019 satisfied the definition of "tax dues" within the meaning of Section 123(c) of the SVLDRS, 2019 as "tax dues" were quantified before 30th June 2019 within the meaning of Section 124(1)(d) of SVLDRS, 2019. 89. It is further case of the respective petitioners that the applications under SVLDRS, 2019 have been wrongly rejected by the Designated Committee without even looking at the quantification by them on 24.10.2018 and 07.05.2019. 90. It is submitted that defence of the respondent that there was no quantification of "tax dues" on or before 30thJune, 2019 was misconceived. It is submitted that the Declaration filed by the respective petitioners have been wrongly rejected as the disqualification under Section 125(1)(e) of the SVLDRS....
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.... 2022 (58) GSTL 528 (Bom.) ix. Vaishali Sharma Vs. Union of India, 2020 (40) GSTL 441 (Del.) x. SabareeshPalliker Vs. Jurisdictional Designated Committee, Thane, 2021 (48) GSTL 240 (Bom.) 95. The petitioners, therefore pray for allowing the writ petition with a direction to the respondent Designated Committee to issue a discharge certificate in Form SVLDRS-4. 96. In W.P.No.11785 of 2020 the respondents are represented by Mr.A.P.Srinivas, learned Senior Standing Counsel and Mr.H.Siddarth, Junior Standing Counsel (Customs and GST) for the second respondent in W.P.No.11785 of 2020. In W.P.Nos.3320 & 3322 of 2022 the respondents are represented by Mr.RajnishPathiyil, the learned Senior Panel Counsel for the respondent in W.P.Nos.12957 of 2020 and for the first and second respondent in W.P.Nos.3320 & 3322 of 2022. 97. Mr.A.P. Srinivas, the learned Senior Standing Counsel has relied on the following decisions:- i. JSW Steel Limited Vs. Union of India and others, 2021 SCC OnLine Bom 3584 : (2022) 96 GSTR 184. ii. No.1 World Wide Express Pvt. Ltd. Vs. Union of India and others, 2021 SCC OnLine Del 4418 : (2022) 103 GSTR 310. 98. The learned S....
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....lution Scheme and others, 2021 SCC OnLine Del 3353 : (2021) 51 GSTL 363 which was affirmed by the Hon'ble Supreme Court by its order dated 04.10.2021 in SLP(C) No.15335 of 2021. 106. The learned Senior Panel Counsel submitted that at the time of introduction of SVLDRS, 2019, the respondents had also issued a clarification in the form of Frequently Asked Questions (FAQs). A specific reference was made to Question No.55 and answer given therein which reads as under:- Question No. 55 Answer I have declared sums of duty as payable by me in multiple returns but not paid the same. Do I need to file a single declaration for all these returns or a separate declaration for each return? For administrative convenience, a single declaration may be filed indicating separately the details of each such return in the declaration. However, it will not have any impact on the applicable tax relief. In other words, for the purpose of application of tax relief, each such return will be taken individually even though a single Estimate/Statement and Discharge Certificate shall be issued for a declaration. 107. The learned Senior Panel Counsel submitted that the application wa....
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....on 125 specifies the eligibility for filing an application and availing the benefit of SVLDRS,2019. 116. There are apparent contradictions in the SVLDRS, 2019. It results in benefits being conferred on only those whose cases do not attract the disqualifications in Section 125 of SVLDRS,2019. 117. As per Section 125 of SVLDRS, 2019, all persons who were in arrears of tax/duties under the specified central indirect tax enactment were eligible to file declaration under the SVLDRS, 2019to settle their case. 118. However, Section 125 of SVLDRS, 2019 is subject to certain exceptions. Those persons who fall under the exceptions are specifically excluded from availing the benefit of amnesty under the SVLDRS,2019. 119. Unless, the case of the respective petitioners fall within the exception to exception in Section 125 of SVLDRS, 2019, the question of their application/Declaration passing the first threshold for scrutiny by the Designated Committee would not arise. 120. The challenge to the rejection of the applications filed under SVLDRS, 2019 by the respective petitioners are similar. The defence of the respondents in W.P.No.11785 and W.P.No.12957 of 2020 are also similar. ....
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....y the declarant, as estimated by the designated committee, exceeds the amount declared by the declarant, then, the designated committee shall issue in electronic form, an estimate of the amount payable by the declarant within thirty days of the date of receipt of the declaration. (3) After the issue of the estimate under subsection (2), the designated committee shall give an opportunity of being heard to the declarant, if he so desires, before issuing the statement indicating the amount payable by the declarant: Provided that on sufficient cause being shown by the declarant, only one adjournment may be granted by the designated committee. (4) After hearing the declarant, a statement in electronic form indicating the amount payable by the declarant, shall be issued within a period of sixty days from the date of receipt of the declaration. (5) The declarant shall pay electronically through internet banking, the amount payable as indicated in the statement issued by the designated committee, within a period of thirty days from the date of issue of such statement. (6) Where the declarant has filed an appeal or reference or a reply to the sho....
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....om 'ST-3' or 'ST-3A'or ST-3C, -Service tax) as the case may be, along with a copy of the Form TR-6, in triplicate for the months covered in the half-yearly return. 7A. Returns in case of taxable service provided by goods transport operators and clearing and forwarding agents : Notwithstanding anything contained in rule 7, an assessee, in case of service provided by - 7B. Revision of Return- (1) An assessee may submit a revised return, in Form ST-3, in triplicate, to correct a mistake or omission, within a period of [ninety days] from the date of submission of the return under rule 7. (2) Every assessee shall submit the half yearly return by the 25th of the month following the particular half-year. [Provided that the Form 'ST-3' required to be submitted by the 25th day of October, 2012 shall cover the period between 1st April to 30th June, 2012 only:] [Provided further that the Form ST-3 for the period between the 1st day of July 2012 to the 30th day of September 2012,shall be submitted by the 25th day of March, 2013.] (Provided also that the return for the period from the 1st day of April, 2017 to the 30th day of June, 2017, shall be submitted ....
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.... from the 16th day of November, 1997 to 2nd day of June, 1998; and (b) clearing and forwarding agents for the period commencing on and from the 16th day of July, 1997 to 16th day of October, 1998, shall furnish a return within a period of six months from the 13th day of May, 2003, in Form 'ST-3B' alongwith copy of Form TR-6 in triplicate, failing which the interest and penal consequences as provided in the Act shall follow.] Explanation.- Where anassessee submits a revised return, the 'relevant date' for the purpose of recovery of service tax, if any, under section 73 of the Act shall be the date of submission of such revised return. (2) An assessee who has filed the annual return referred to in sub-rule (3A) of rule 7 by the due date may submit a revised return within a period of one month from the date of submission of the said annual return. 128. Returns can also be filed beyond the period prescribed in the above Rules. To implement the requirement of Section 70 of the Finance Act, 1994, Rule 7C has been provided in Service Tax Rules, 1994. Rule 7C of the Service Tax Rules, 1994 reads as under:- (1) Where the return prescribed under rule 7 is furn....
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.... Definition Tax Dues Relief 121. In this Scheme, unless the context otherwise requires,- ........ ....... "amount in arrears" means the amount of duty which is recoverable as arrears of duty under the indirect tax enactment, on account of- i) no appeal having been filed by the declarant against an order or an order in appeal before expiry of the period of time for filing appeal; or ii.an order in appeal relating to the declarant attaining finality; or iii. the declarant having filed a return under the indirect tax enactment on or before the 30th day of June, 2019, wherein he has admitted a tax liability but not paid it; 123. For the purposes of the Scheme, "tax dues" means- (a)......... (b).......... (c).......... (d) ......... (e) where an amount in arrears relating to the declarant is due, the amount in arrears. 124. (1) Subject to the conditions specified in sub-section (2), the relief available to a declarant under this Scheme shall be calculated as follows:- (a)........ (b)....... (c) where the tax dues are relatable to an amount in arrears and,- (i) the amount of duty is, rupees fift....
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.... (d) where the tax dues are linked to an enquiry, investigation or audit against the declarant and the amount quantified on or before the 30th day of June, 2019 is- (i) rupees fifty lakhs or less, then, seventy per cent. of the tax dues; (ii) more than rupees fifty lakhs, then, fifty per cent. of the tax dues; 135. For clear understanding of cases where there is quantification before 30.06.2019 in the case of a declarant where an enquiry or investigation was pending, the following table given below:- ENQUIRY OR INVESTIGATION OR AUDIT 125. (1) All persons shall be eligible to make a declaration under this Scheme except the following, namely:- (e) who have been subjected to an enquiry or investigation or audit and the amount of duty involved in the said enquiry or investigation or audit has not been quantified on or before the 30th day of June, 2019; Definition Tax Due Relief 121. In this Scheme, unless the context otherwise requires,- (g)"audit" means any scrutiny, verification and checks carried out under the indirect tax enactment, other than an enquiry or investigation, and will commence when a written intimation from t....
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..... And also that the audit and investigation were in terms of the definition in Section 121(g) and (m) of the SVLDRS, 2019. 139. Whereas, it is the case of the revenue/respondent that the situation of the petitioner is covered by Section 125(1)(e) on the ground that the petitioner was being investigated and the amount of duty involved (tax) has not been quantified on or before the cut off date of 30.06.2019. 140. Before, proceeding further, as to whether the petitioners are indeed entitled to relief under 124(1)(d) of the SVLDRS, 2019, we shall briefly refer to the other category namely "voluntary disclosure" where, though an application can be filed, no relief is available barring immunity to penalty and interest etc. 141. In case of "voluntary disclosure" in respect of an amount in arrears of tax, such a person is not eligible to file a declaration under SVLDRS, 2019 in terms of Section 125(1)(f)(ii) other than the following persons: 125. (1) All persons shall be eligible to make a declaration under this Scheme except the following, namely:- (f) a person making a voluntary disclosure,- (i) after being subjected to any enquiry or investigation or....
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.... it is not the self declared quantification of a Declarant of "tax dues" which will entitle the benefit of the aforesaid scheme. The scheme brings a closure to the tax dispute with issuance of certificate under Section129 of SVLDRS, 2019. It has to be a quantification which ought to have been accepted by the Investigating Wing or Audit Wing of the Department. 149. The question of issuing statement by the Committee under Section 127 read with Rule 6 of the SVLDRS Rules, 2019 would arise only where the application filed itself falls within the four corners of Section 124(1)(d) as extracted above. Only where there was quantification of tax or duty in arrears, the scheme was applicable. 150. We now proceed to deal with the application filed under the SVLDRS, 2019 by the petitioner in W.P.No.11785 of 2020 (M/s. Win Power Engineering Pvt. Ltd.) for the second time on 13.01.2020 and its rejection in the system on the same date. 151. The petitioner in W.P.No.11785 of 2020 had earlier filed an application under the SVLDRS, 2019 on 09.11.2019. The same was rejected and a fresh application was filed on 13.01.2020. The second application also was auto-rejected in the system which is i....
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.... Inspite of repeated reminder email dated 12.10.2018, 13.10.2018, 24.10.2018, 17.12.2018, 15.02.2018, 15.02.2019, 12.02.2019, 28.02.2019, 28.02.2019, 5.3.2019, 25.03.2019, 8.4.2019, 17.6.2019, 1.7.2019, 3.9.2019 and phone calls (last 8 months). You have not submitted the required documents for finalization of audit. Hence, you are requested to submit the following documents immediately. Otherwise action will be initiated as per Service Tax Rules & Section. 1.ST-3 returns of April 2017 to June 2017 2.Detailed statement in respect of works contract service 3. Reimbursable expenditure- copy of the invoices- for the inalization of this issue. You have also not produced the following documents. 1.Signed copy of the Reimbursable statement. 2.Signed copy of the trial balance (April to June 2017) 3.Signed copy of the statement of realisation of amount from your customer. 4. Signed copy of the statement of payment not received from your customer. 157. These documents have not been furnished by the petitioner. The audit was later completed and the petitioner has received a Show Cause Notice dated 26.02.2022 bearing....
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....ithin the purview of the exemption to the exclusion in Section 125(1)(e). 162. However, only an adhoc quantification was made for the "tax dues" period between April 2017 to June 2017. Therefore, there was quantification for the aforesaid period alone. No quantification was provided by the petitioner for the period between March 2016 to March 2017 for the purpose of definition under Section 121(r) r/w Section 123(c) & Section 124(1)(d). The disability under Section 125(1)(e) of SVLDRS, 2019 is attracted for the period between March 2016 to March 2017 and therefore as an errant taxpayer whose tax liability has not been determined, the petitioner is not entitled to avail the benefit of SVLDRS, 2019for the period between March 2016 to March 2017. 163. In our view, there was neither a proper quantification by the petitioner nor any quantification during audit by the Department. Therefore, the petitioner in W.P.No.11785 of 2020 is not entitled to the benefit of SVLDRS, 2019 for the period between March 2016 to March 2017. 164. The petitioner has placed reliance on the decisions of Delhi and Bombay High Courts and the FAQs issued by the Central Board of Indirect Taxes and Custom....
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....as also in time. 172. A sum of Rs.37,08,90,828/- was quantified by the petitioner as "tax due" in its reply dated 07.05.2019 in response to the summons dated 23.04.2019.Extract from the aforesaid letter dated 07.05.2019 reads as under:- Period Date of Filing ST Payable 2014-15 10.05.2017 12,99,13,633 2015-16 19.11.2018 8,35,56,989/- 2016-17 (1^st half) 11.01.2019 2,49,88,012/- Total 23,84,58,634 173. A reading of the Show Cause Notice indicates that for the period 2014-15, 2015-16 and 1st half of 2016-17 returns were filed prior to the implementation of SVLDRS, 2019 with effect from 01.09.2019 vide Chapter-V of the Finance Act, 2019. Neither the affidavit nor the show cause notice reveals the date of the payment. 174. A reading of the Show Cause Notice indicates that the petitioner has paid the aforesaid sum of Rs. 23,84,58,634/- together with the late filing fees for the returns filed beyond the statutory period. 175. The difference between the amount admitted by the petitioner in its letter dated 07.05.2019 and the amount demanded in the Show Cause Notice dated 25.09.2020 is Rs.75,51,102/-are as detailed below:- S....
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....ount of- (iii) the declarant having filed a return under the indirect tax enactment on or before the 30th day of June 2019, wherein he has admitted a tax liability but not paid it. e) where an amount in arrears relating to the declarant is due, the amount in arrears. c) where the tax dues are relatable to an amount in arrears and, - (i) the amount of duty is, rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (ii) the amount of duty is more than rupees fifty lakhs, then, forty per cent. of the tax dues; (iii) in a return under the indirect tax enactment, wherein the declarant has indicated an amount of duty as payable but not paid it and the duty amount indicated is, - (A) rupees fifty lakhs or less, then, sixty per cent. of the tax dues; (B) amount indicated is more than rupees fifty lakhs, then, forty per cent. of the tax dues 180. The above quantification of liability was prior to the implementation of SVLDRS, 2019. A reading of the Show Cause Notice issued to the petitioner and the above chart reveals that the petitioner has disputed that it was not liable to pay service tax on a part o....
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....ner on the amounts remaining unpaid prior to implementation of SVLDRS, 2019 with effect from 01.09.2019. 190. The respondents are directed to issue Form SVLDRS (3 or 4) the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 subject to the balance amount paid by the petitioner. 191. In the result, W.P.No.11785 of 2020: i. W.P.No.11785 of 2020 is allowed by directing the respondents to accept the declaration filed under SVLDRS, 2019 for the tax dues and tax determined by the petitioner as payable for the period between April 2017 to June 2017 amounting to Rs.1,98,86,089/- in its letter dated 28.10.2018 alone and settle the case by issuing appropriate discharge certificate in accordance with the provisions of SVLDRS, 2019 preferably within a period of 30 days from the date of receipt of a copy of this order. ii. For the balance amount covered by the Show Cause Notice dated 26.02.2022 issued by the Additional Commissioner of GST and Central Excise, the Additional Commissioner of GST and Central Excise may issue a corrigendum to the said Show Cause Notice, within a period of 60 days from the date of receipt of a copy of this order to the petitioner. iii. For the re....