Gujarat High Court
M/S Ons Buildtech Llp vs Principal Commissioner on 10 January, 2025
Author: Bhargav D. Karia
Bench: Bhargav D. Karia
NEUTRAL CITATION
C/SCA/502/2020 ORDER DATED: 10/01/2025
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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
R/SPECIAL CIVIL APPLICATION NO. 502 of 2020
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M/S ONS BUILDTECH LLP
Versus
PRINCIPAL COMMISSIONER & ORS.
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Appearance:
MR D K TRIVEDI(5283) for the Petitioner(s) No. 1
MR SIDDHARTH H DAVE(5306) for the Respondent(s) No. 1,2
NOTICE SERVED BY DS for the Respondent(s) No. 3
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CORAM:HONOURABLE MR. JUSTICE BHARGAV D. KARIA
and
HONOURABLE MR.JUSTICE D.N.RAY
Date : 10/01/2025
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA)
1. Heard learned advocate Mr. D.K.Trivedi for the petitioner and learned advocate Mr. Siddharth Dave for the respondents.
2. Rule returnable forthwith. Learned advocate Mr. Siddharth Dave for the respondents waives service of notice of Rule.
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3. Having regard to the controversy arising in this petition in narrow compass, with the consent of the learned advocates for the respective parties, the same is taken up for final hearing.
4. By this petition, under Articles 226 and 227 of the Constitution of India, the petitioner has challenged the action of the designated committee formed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ['SVLDRS' for short] by issuing Form No. SVLDRS-3 dated 04.12.2019.
5. This Court passed the following order on 08.01.2020.
"1. Mr.D.K.Trivedi, the learned counsel appearing for the writ applicant, after obtaining instructions from his client, makes a Page 2 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined statement that his client will deposit an amount of Rs.31,36,551.60 Paisa, with the respondent No.2, within a period of two weeks from today.
2. In view of such statement, being made by the learned counsel appearing for the writ applicant and the writ applicant having undertaken to deposit the amount, referred to above, with the respondent No.2, let Notice be issued to the respondents, returnable on 29th January, 2020. Direct service is permitted to the respondent Nos.1 and 2. So far as the respondent No.3 is concerned, service may be affected by Registered Post with Acknowledgment Due.
3. We direct the respondent No.2 to accept the amount, referred to above, without prejudice to its rights and contentions. The amount shall be accepted towards service tax arrears."
6. Pursuant to the aforesaid order, the petitioner has deposited the amount of Rs. 31,36,551.60 as per the Form SVLDRS-1 on 21.01.2020 and has placed the challan on record.
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7. Brief facts of the case are as under:
7.1 The petitioner, who is engaged in providing Taxable Service under category of 'Construction Service in respect of Commercial Industrial Building and Civil Structures' was subject to proceedings under the provisions of Finance Act,1994. A show-cause notice dated 18.12.2018 was issued by the respondent-
Assessing Officer to show cause as to why the amount of service tax and interest of Rs.
12,23,19,106/- alleged to have been not paid under 'Construction Service in respect of Commercial and Industrial Building and Civil Structure' during the period from April 2014 to June 2017 should not be demanded and recovered from the petitioner along with interest and penalty under sections 78, 77(1)
(a) and 77(2) of the Finance Act,1994.
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9,64,31,900/-.
7.3 The petitioner therefore, was subjected to pay the demand of service tax of Rs. 52,27,586/- exclusive of interest and penalty.
7.4 It is the case of the petitioner that the petitioner has accepted the Order-in-Original and has not challenged the same by preferring an appeal and before the petitioner could pay demand of Page 5 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined Rs. 52,27,586/- along with interest and penalty, SVLDRS was introduced by Finance (2) Act,2019 (23/19) vide Chapter-V in the Gazzete of India Extraordinary and 1st day of September,2019 was notified to be the date on which, it came into force as per the Notification No. 4/2019 dated 21.08.2019.
7.5 By Notification No. 5/2019 dated 21.08.2019, Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 ['SVLDRS Rules' for short] was published in extraordinary powers conferred vide under sections 1(1) and (2) of section 132 of Finance (2) Act,2019.
7.6 The petitioner therefore, submitted declaration in Form SVLDRS-1 dated 04.10.2019 as per the provision of Page 6 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined section 125 of SVLDRS read with Rule 3 of SVLDRS Rules.
7.7 As the petitioner did not prefer an appeal challenging the demand as per the Order-in-original amounting to Rs.
52,27,586/- along with interest and penalty, the petitioner filed declaration in the category of "arrears" as provided under section 121(c) read with section 124 of the SVLDRS. The petitioner claimed the relief of 40% by agreeing to pay 60% of the arrears of Rs. 52,27,586/- amounting to Rs. 31,36,551.60. Accordingly, Form SVLDRS-2 was issued in terms of Rule 6(3) dated 22.11.2019.
7.8 The designated committed formed under the provision of the SVLDRS-2, taking into consideration the appeal filed Page 7 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined by the department on 6th August 2019, had opined that the case of the petitioner falls in the category of 123(a) of the SVLDRS to determine tax dues and not in category of 123(e) which prescribes that where the amount in arrears relating to the declarant is due, the amount in arrears to be the 'Tax Dues'. The petitioner, therefore, was called upon to pay amount of Rs. 1,55,32,324/-
considering the appeal filed by the department against the relief granted in the Order-in-original to the petitioner as the amount of tax dues and notice for personal hearing was issued.
7.9 In response to the aforesaid notice for personal hearing in Form SVLDRS 2, the petitioner filed reply dated 29.11.2019 contending inter alia that the Page 8 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined petitioner is not liable to pay the amount stated in Form SVLDRS-2 as the case of the petitioner falls in the arrears and the tax dues would be covered by clause (e) of section 123 of the SVLDRS and not clause
(a) which is pressed into service by the Designated Committee. However, the Designated Committee comprising of the respondent Nos. 1 and 2 herein, issued the Form SVLDRS-3 dated 04.12.2019 as per the provisions of section 127(iv) of SVLDRS dated 04.12.2019 determining the amount of payable at Rs. 1,55,32,324/- considering the tax dues of Rs. 2,58,87,206/- by granting relief of Rs.1,03,54,882/-.
7.10 On receipt of the aforesaid Form SVLDRS-3 the petitioner has affirmed this petition on 01.01.2020 challenging From Page 9 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined SVLDRS-3 which, according to the petitioner, is contrary to the provisions of the SVLDRS.
7.11 This Court, vide order dated 08.01.2020, as extracted here-in-above directed the petitioner to pay the undisputed amount of Rs. 31,36,551.60 which is deposited by the petitioner on 20.01.2020.
8. Learned advocate Mr. D.K.Trivedi for the petitioner submitted that the provision of section 121(c) provides that "the 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-in-appeal Page 10 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined before the expiry of the period of time for filing appeal.
8.1 It was submitted that admittedly, the petitioner has not filed any appeal challenging the demand raised as per the Order-in-original passed by the respondent-authority. Therefore, amount payable by the petitioner as per the Order-in-original becomes "the amount in arrears" as per the provision of section 121(c)(i) of the SVLDRS.
8.2 It was thereafter referred to the provision of section 122(a) to point out that the provisions of the Finance Act,1994 are covered by the Scheme.
Thereafter, learned advocate Mr. Trivedi referred to the provisions of sections 123(a) and 123(e) to submit that the case Page 11 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined of the petitioner would fall under the clause (e) and not under clause (a) of section 123 of SVLDRS.
8.3 Thereafter learned advocate Mr. D.K.Trivedi referred to clause (c) of sub-
section (ii) of section 124 to submit that the petitioner is liable to deposit 60% of the 'tax dues' as the amount of arrears of duty payable by the petitioner forming 'tax dues' exceeds Rs. 50 lakhs.
8.4 Thereafter, learned advocate Mr. Trivedi invited attention of the Court to the inward stamp on the appeal filed by the respondent-department which shows that the appeal was preferred after 30.06.2019 i.e. on 06.08.2019. It was therefore submitted that admittedly, as on 30.06.2019, no appeal was pending either Page 12 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined filed by the petitioner or the respondent-
department against the Order-in-original therefore, the demand raised as per the Order-in-original would fall within the scope of "amount in arrears" which would be tax dues payable as per the Scheme and accordingly, the petitioner would be entitled to the benefit of 40% of the relief as per the section 124(c)(ii) of the SVLDRS.
8.5 It was submitted that the respondent-designated authority has not applied the provisions of the SVLDRS for issuing the Form SVLDRS-3 and therefore, the same is liable to be quashed and set aside and the respondent-authority may be directed to issue SVLDRS-3 as per the From SVLDRS 1 filed by the petitioner. In support of his submissions, reliance was Page 13 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined placed on the decision of Om Prakash Kashyap vs. Union of India reported in 2023 (70) GSTL 439 (Jharkhand)more particularly, paras 5 and 11 thereof which reads as under:
"5. Learned counsel further pointed out to the supplementary counter affidavit filed by the respondents, in particular para-9 and 10 which are quoted hereunder :-
"9. That the respondents states and submits that Section 125 of the Finance (No.2) Act, 2019 (SVLDRS, 2019) prescribed eligibility to make a declaration under the scheme, Section 125 of the Finance (No.2) Act, 2019 provides for eligibility of declaration except for selected exclusions. In litigation cases, it prohibits those cases where the appeal has been finally heard on or before 30.06.2019 and in enquiry/ investigation/ audit, where the duty has not been quantified before 30.06.2019. Tax dues have been defined in clause (a), (b), (c), Page 14 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined
(d) and (e) of Section 123 which also refer to the cut-off date of 30.06.2019 in case of litigation and enquiry/ investigation/ audit. However, "amount of arrear" as defined in sub-clause (i) and (ii) of clause (c) of Section 121 of the Act, does not provide any such cut- off date. The said clause reads as under:-
"(c)" 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;
The same is also provided in the definition of 'tax dues' in clause
(e) of section 123 of the Act. From Page 15 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined a consolidated reading of Section 121 and 123 of the Act, it can be ascertained that the cases where the show-cause notices were issued on or after 01.07.2019 and tax dues having not been quantifies on or before 30.06.2019, shall not be eligible under litigation or enquiry/investigation/audit category but under "arrears" category, provided all statutory requirements pertaining to appeal and review have been fulfilled.
Clause 2(viii) of the Circular No.1074/07/2019-CX dated 12.12.2019, only elaborated this provision, which was well provided in the Act. The said clause also clearly states that it was to reduce litigation, which was one of the objectives of the scheme. Accordingly, the said circular is within the scope of the SVLDRS, 2019.
In addition, Section 133 of the Act provides that for proper administration of the scheme, the Central Board of Indirect Taxes and Customs may issue orders;
instructions and directions.
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10. That the petitioner is not entitled to any equitable relief/reliefs from this Hon'ble Court & the Writ Application is fit to be dismissed inlimine."
It is submitted that as per the statements made in the supplementary counter affidavit the declaration of the petitioner would fall in the category of "Litigation", if any appeal had been preferred by 30th June 2019 only, otherwise the case of the declarant such as petitioner would fall under the category "amount in arrears" as defined in Sub-clause (i) of Sub-section (c) of Section 121 of the Act which does not provide any such cut-off date. It is submitted that in that view of the matter the categorization of the case of the petitioner in "Litigation" category only on contemplation of filing of an appeal by the Department beyond the time limit and that too after rejection of SVLDRS-1 on 5th May 2020 was not proper in the eyes of law as there was no appeal pending as on 30th June 2019 contemplated in terms of Section 123 of the Scheme. It is submitted that the declaration made by the petitioner was therefore within time covered under Circular dated 12th Page 17 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined December 2019 but rejected on misconception that it fell under "Litigation" category and not "amount in arrears". It is submitted that under Section 121 Sub-section (i)(c) an appeal, if any, could be filed only by the declarant and not on the part of the respondent Department. So on a holistic construction of the entire Scheme and even applying the relevant provisions of Section 123 read with Section 125 of the Scheme, the declaration made by the petitioner under "amount in arrears" category could not have been rejected on the ground that the respondent contemplated preferring the appeal against the order in original and that too beyond the period of limitation."
11. It further transpires that crux of the case revolves around the category i.e., arrears or litigation under which the case of the Petitioner will fall. From bare perusal of the aforesaid provisions of Scheme, it would transpire that the nature of cases falling under Section 121(c) is categorized under "arrears category". Section 123(a), 123(b) and 123(c) deals with cases falling under "litigation category" for determining tax dues under the Scheme. The said Page 18 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined provisions of Section 123 are not applicable to the case of the Petitioner, as admittedly, no Appeal was pending as on 30.06.2019 and the show cause notice was received by the Petitioner on 10.08.2019 i.e., after the cut-off date of 30.06.2019. Further, no enquiry or investigation or audit was pending against the Petitioner as on 30.06.2019. Thus, calculation of Tax payable under Section 124(1)(a) by the Designated Committee is unwarranted.
On the contrary, Section 121(c) to be read with Clause 2(viii) of the Circular dated 12.12.2019 the case of the Petitioner would fall under "arrears category" as vide aforesaid Circular dated 12.12.2019 has specifically provided, inter alia, that since the main object behind the scheme is to liquidate legacy cases under Central Excise and Service Tax even if Show Cause Notice was issued on or before 01.07.2019 and such cases are also not covered under any of categories under the Scheme, then also such cases would became eligible under the Scheme in 'arrears category" for the purpose of availment of the benefit of the Scheme. Further, the word "order" occurring in Section Page 19 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined 125(1)(c) will mean the order of determination under Indirect Tax enactment as per Section 121 (o) of the Scheme.
From bare perusal of Section 121(c) & 124(1)(c), it would be evident that the case of Petitioner will fall under the "arrears category" nonetheless litigation category. At the cost of repetition, admittedly, the Show Cause Notice was issued on 28.10.2019 i.e., after 30th June, 2019, and the same was adjudicated on 14th January, 2020. It further appears that, even if it is to be accepted that Respondent- Department was intended to file Appeal against the Order-in-Original dated 14.01.2020, then also, such plea or ground of Respondents would not change the nature of category of the Petitioner-company. Admittedly, as per respondents they themselves have contended in their counter affidavit that they have filed an Appeal before the Appellate Tribunal on 25.06.2020. Thus, as on the date of filing of the declaration form by the Petitioner, no Appeal was filed and/or pending before the Appellate Forum. Indeed, for the purpose of determination of tax dues, the case of the petitioner does not fall under Section 123 of the scheme Page 20 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined of 2019 as Department had not preferred an Appeal against the Order- in-Original as on the said date. It further appears that the appeal of the Department has been filed after the expiry of period of limitation prescribed under Section 86(3) of the Finance Act as the said provision provides a period of limitation of three months which has expired on 14.04.2020. Thus, it transpires that in the opinion of the respondent filing of the appeal has led to change in the category of petitioner from "arrear category" to "litigation category" which view is beyond the letter and spirit of the scheme."
9. Per contra, learned advocate Mr. Siddharth Dave for the respondent submitted that admittedly, the petitioner did not pay the amount required to be paid as per Form SVLDRS-3 within 30 days or within the extended period of time and as such, as per the provision of section 126 read with the provision of section 127(4) of the Page 21 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined SVLDRS and as such, the petitioner is not liable to any relief.
9.1 It was further submitted that the designated authority has considered the pending appeal filed by the respondent-
department and thereafter issued Form SVLDRS-2 and SVLDRS-3 which is as per the provisions of the Scheme as per the pending appeal petitioner would be covered by the provision of section SVLDRS.
10. Having heard learned advocates for the respective parties and having considered the facts of the case, it would be germane to refer to the relevant provisions of SVLDRS:
"121. In this Scheme, unless the context otherwise requires,--Page 22 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025
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(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........
123. Tax Dues For the purposes of the Scheme, "tax dues" means--
(a) where--
(i) a single appeal arising out of an order is pending as on the 30th day of June, 2019 before the appellate forum, the total amount of duty which is being disputed in the said appeal;
(ii) more than one appeal arising out of an order, one by the declarant and the other being a departmental appeal, which are pending as on the 30th day of June, 2019 before the appellate forum, the sum of the amount of duty which is being disputed by the declarant in his appeal and the amount of duty being disputed in the departmental appeal:
Provided that nothing contained in the above clauses shall be applicable where such an appeal has been heard finally on or before the 30th day of June, 2019........Page 23 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025
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(b) where a show cause notice under any of the indirect tax enactment has been received by the declarant on or before the 30th day of June, 2019, then, the amount of duty stated to be payable by the declarant in the said notice:
Provided that if the said notice has been issued to the declarant and other persons making them jointly and severally liable for an amount, then, the amount indicated in the said notice as jointly and severally payable shall be taken to be the amount of duty payable by the declarant;
(c) where an enquiry or investigation or audit is pending against the declarant, the amount of duty payable under any of the indirect tax enactment which has been quantified on or before the 30th day of June, 2019;
(d) where the amount has been voluntarily disclosed by the declarant, then, the total amount of duty stated in the declaration;
(e) where an amount in arrears relating to the declarant is due, the amount in arrears.Page 24 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025
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124. Relief available under the Scheme:-
(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) where the tax dues are relatable to a show cause notice or one or more appeals arising out of such notice which is pending as on the 30th day of June, 2019, and if the amount of duty 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;
.............
126. Verification of declaration by designated committee.
(1) The designated committee shall verify the correctness of the declaration made by the declarant under section 125 in such manner as may be prescribed: Provided that no such verification shall be made in Page 25 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined case where a voluntary disclosure of an amount of duty has been made by the declarant.
(2) The composition and functioning of the designated committee shall be such as may be prescribed.
127. Issue of statement by designated committee.
(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 Page 26 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined 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........
(8) On payment of the amount indicated in the statement of the designated committee and production of proof of withdrawal of appeal, wherever applicable, the designated committee shall issue a discharge certificate in electronic form, within thirty days of the said payment and production of proof."
11. Considering the above provisions of the SVLDRS, it is apparent and crystal clear that the case of the petitioner would fall in the category of "amount in arrears" as Page 27 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined admittedly the petitioner has not preferred any appeal before 30.06.2019 challenging the Order-in-original and the demand raised in the Order-in-original amounting to Rs.32,27,856/-has achieved finality so far as the petitioner is concerned and accordingly, the petitioner would be entitled to the benefit of the SVLDRS which has a basic feature of reducing the disputes and create an atmosphere of trust between the assessee and the respondent-department.
12. However, in the facts of the case it appears that, the designated committee, contrary to the provision of the SVLDRS and with total non-application of mind has issued Form SVLDRS-2 and without taking into consideration reply of the petitioner 29.11.2019 has issued Form SVLDRS-3 in a Page 28 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined mechanical manner. The petitioner has been vigilant to challenge such SVLDRS-3 immediately by preferring this petition and this Court has directed the petitioner to deposit 60% of the tax arrears amounting to Rs. 31,32,551.60 which petitioner has already deposited.
13. Therefore, in the facts of the case, when there was no appeal pending filed by the petitioner, the amount of demand raised in the Order-in-original would become the tax dues being the amount in arrears as per clause (e) of section 123 of SVLDRS and accordingly, the petitioner is entitled to get the benefit of the provision of section 124 of the SVLDRS by paying 60% of the amount in arrears as tax dues which the petitioner has already deposited.
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14. In view of the above facts, the respondent-authority is required to issue revised Form SVLDRS-3 along with Form SVLDRS-4 as per the provision of SVLDRS accepting the amount of Rs. 31,32,551.60 deposited by the petitioner as eligible amount for granting the benefit of SVLDRS.
All subsequent proceedings would therefore be of no consequence and are accordingly required to be set aside.
15. In view of foregoing reasons, the petition succeeds and is allowed. The respondents are therefore, directed to issue Form SVLDRS-3 accepting the amount of Rs. 31,32,551.60 deposited by the petitioner as eligible amount for granting the benefit of SVLDRS along with Form SVLDRS-4, and consequently all subsequent proceedings would be of no avail and are Page 30 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025 NEUTRAL CITATION C/SCA/502/2020 ORDER DATED: 10/01/2025 undefined accordingly set aside. Such exercise shall be completed within twelve weeks from the date of receipt of copy of this order.
Rule is made absolute to the aforesaid extent. No order as to costs.
(BHARGAV D. KARIA, J) (D.N.RAY,J) JYOTI V. JANI Page 31 of 31 Uploaded by JYOTI V. JANI(HC00213) on Thu Jan 23 2025 Downloaded on : Fri Jan 31 23:53:44 IST 2025