TaxTMI 
TaxTMI 
2024 (7) TMI 815
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.... the Constitution of India, the petitioners have prayed for the following reliefs:- "(A) That Your Lordships may be pleased to issue a Writ of Certiorari or a Writ of Mandamus any other appropriate writ, direction or order, quashing and setting aside decisions of the Designated Committee bearing F. No. V. Misc. (87) SVLDRS/Advance/19-20 dated 6.5.2020 (Annexure-"K"), F.No. V. Misc (87) VLDRS/Advance/19-20 dated 30.6.2020 (Annexure-"L") and F. No. V. Misc. (87) SVLDRS/Advance/19-20 dated 10.8.2020 (Annexure-"N") thereby directing the Designated Committee to issue Form SVLDRS-3 in the Petitioner's favour for the amount specified by the Designated Committee for this case and to issue a Discharge Certificate under Section 129 of the Sabka Vishwas (Legacy Dispute Resolution) Scheme upon depositing by the Petitioner the amount specified by the Designated Committee in this case; (B) That Your Lordships may be pleased to issue a Writ of Mandamus or any other appropriate writ, direction or order holding and declaring that the Petitioner has been eligible for settling the case of SVLDRS-1 bearing ARN No. LD 1501200000439 dated 15.01.2020, and directing the Respondents h....
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....S issued Form SVLDRS-2 on 29.01.2020 stipulating the estimate of amount payable by the petitioner for settlement of the case and the petitioner was subjected to make payment of Rs. 77,80,647/- considering that tax dues were Rs. 3,23,94,404/-. 4.8 The petitioner uploaded a request for hearing in Form SVLDRS-2A on 30.01.2020 in view of the higher amount being specified by the designated committee for settlement of the case. 4.9 During the hearing on 07.02.2020, the petitioner submitted a representation with various documents for justifying the deduction and adjustment claim for arriving at net tax liability of Rs. 1,52,63,141/- instead of Rs. 3,23,94,404/-. 4.10 The petitioner submitted another representation on 19.02.2020, emphasizing its eligibility for settling the case under SVLDRS and also the quantification of amount payable. The petitioner also submitted the certificate of Chartered Accountant on 04.03.2020 along with certain other documents on 04.03.2020 as called for by the designated committee. The designated committed issued a letter dated 06.05.2020 rejecting the declaration dated 15.01.2020 filed by the petitioner on the ground that there was no written communic....
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....me of SVLDRS as per Section 127 (2) of the designated committee could not have re-examined the entire application and rejected the same in view of the representation made by the petitioner as provided under Section 127 (3) of the SVLDRS and only option available before the designated committee is to issue a statement in electronic form indicating the amount payable by the declarant after giving an opportunity of hearing within a period of 60 days from the date of receipt of the declaration. Therefore, the order dated 06.05.2020 passed by the designated committee for re-examining the application is not permissible by rejecting such application. It was submitted that the designated authority ought to have permitted the petitioner to pay the amount of Rs. 77,80,000/- as accepted by the petitioner in communication dated 26.06.2020 and such request could not have been rejected on the ground that the time limit for payment has expired on 31.05.2020. Learned advocate Mr. Rachh in support of his submission relied upon the following decisions :- Bombay High Court in the case of Virtusa Systems (India) Private Limited (earlier known as E-Touch System (India) vs. Union of India & Ors....
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....dent authority. It was further submitted by learned advocate Mr. Rachh that the petitioner is also ready and willing to pay the interest as may be directed by this Court on Rs. 77,80,000/- from the date due till the date of payment. It was submitted that during the pendency of this petition, the respondents have issued the show cause notice-cum-demand notice dated 20.10.2021 and the Order in Original dated 16.01.2023 is also required to be quashed and set aside. 8. On the other hand, learned advocate Mr. Jay Mehta for the respondent submitted that the petitioner has flip-flop from its stand of making payment to avail the benefit of SVLDRS. It was submitted that once the designated authority has already estimated the amount payable as Rs. 77,80,647/- and issued SVLDRS-2 on 29.01.2020, which was payable by the petitioner within prescribed period of time, however, the petitioner did not pay the amount and requested for hearing to insist upon the acceptance of net liability of service tax of Rs. 1,52,63,141/- instead of Rs. 3,23,94,404/- worked out by the designated committee on the basis of the report of the preventive section of the respondent department. It was, therefore, submit....
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.... 127. (1) Where the amount estimated to be payable by the declarant, as estimated by the designated committee, equals the amount declared by the declarant, then, the designated committee shall issue in electronic form, a statement, indicating the amount payable by the declarant, within a period of sixty days from the date of receipt of the said declaration. (2) Where the amount estimated to be payable by 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 sub-section (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 (4) After hearing the declarant, a statement in electronic form indicating the amount payable by the declarant, sh....
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....n) Scheme Rules, 2019, the declarant then will have to make the payment within 30 days from the date of issuance of such statement. 6. The present case falls in the category where the Designated Committee has accepted the amount declared by the declarant. The fact that form SVLDRS-3 is not issued to the Petitioner is an admitted position. This fact is admitted in the reply affidavit filed on behalf of Respondent Nos. 3 to 6 by the Assistant Commissioner of CGST & Central Excise, Division VI, Thane Commissionerate. Further, the Petitioner was eligible for availing the benefit of the Scheme is also accepted, and it is further stated in the reply affidavit that if the Petitioner is allowed to deposit the eligible amount it should be with interest at the rate of Rs. 9% per annum, which stand is reiterated before us by the learned Counsel for the Respondents. Therefore, the issuance of form SVLDRS-3 was necessary, and it was not issued to the Petitioner due to the error on the part of the Respondents is an accepted position. The Petitioner therefore is entitled to a direction to the Respondent to accept the eligible amount. 7. The only question remains is regarding the....