TaxTMI 
TaxTMI 
2024 (11) TMI 1139
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Petitioner challenges rejection, by the Respondents, of its application filed under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ("SVLDR Scheme") on the ground that since the quantification of demand is made after 30 June 2019, Petitioner is not eligible to avail the benefit of the said Scheme. Brief facts :- 2. The Petitioner had registered itself under the Finance Act, 1994 for discharging its service tax liability on services rendered under "Outdoor Catering Services and Manpower Supply Services". 3. On 11 April 2018, premises of the Petitioner was visited by the Intelligence Officers of the Respondents and documents relating to enquiry were called for. In the course of investigation, summons were issued and statements of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ondents issued Form SVLDRS-2 rejecting the application on the ground that the quantification of the amount is post 30 June 2019 and, therefore, the Petitioner is not eligible for availing the benefit of the SVLDR Scheme. It is on this backdrop that the present petition is filed by the Petitioner challenging the rejection of its application under SVLDR Scheme. 7. Mr. Shreevastava, learned counsel for the Petitioner submits that the quantification has been admitted by the Petitioner in the course of the investigation proceedings wherein a sum of Rs.1,39,58,752/- has been admitted as service tax liability for the period 2014 to 2017. In the show cause notice, the relevant quantification made by the Petitioner in the course of the investigatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....so recorded of the representative of the Petitioner. In the statement dated 16 April 2019, the Petitioner admitted its service tax liability for the period 2014-2015 to 2017-2018 amounting to Rs.1,39, 58,752/-. The said quantification was done by the Petitioner in the course of the investigation prior to 30 June 2019. However, at the time of filing the application under the SVLDR Scheme, the Petitioner has disclosed more amount of Rs.1,50,37,871/-. The show cause notice was issued post 30 June 2019. However, the said higher figure was taken by way of abundant caution and no prejudice is caused to the Respondents since the Petitioner has disclosed more than what was quantified during the course of the investigation. 11. Section 121 (r) of t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....graph 10(g) clarified that the duty liability admitted by the person during enquiry, investigation or audit quantified before 30 June 2019 would be eligible under the Scheme. The said clause (g) reads as under:- "(g) 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." 14. In the instant case, admittedly in the cours....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... his statement dated 25.09.2019 to Rs.2,08,29,640.00. From a conjoint reading of section 121(r) of the Finance (No.2) Act, 2019, circular of the Board dated 27.08.2019 and answers to question Nos. 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 due....