The main legal point established in the judgment is the broad and liberal interpretation of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, emphasizing the eligibility of cases where the duty demand had been quantified before 30.06.2019.

JUDGMENT :

Ujjal Bhuyan, J.

1. Heard Mr. Rajendra Mishra, learned counsel for the petitioner and Mr. Pradeep Jetly, learned senior counsel for the respondents.

2. By filing this petition under Article 226 of the Constitution of India, petitioner seeks quashing of order dated 01.03.2020 whereby declaration of the petitioner dated 24.11.2019 under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was rejected and further seeks a direction to the respondents to consider afresh the aforesaid declaration as a valid one and thereafter grant consequential relief to the petitioner in terms of the said scheme.

3. Case of the petitioner is that it is a company incorporated under the Companies Act, 1956 having its registered office at Mumbai. Earlier, it had service tax registration for providing security/detective agency services and presently it has Goods and Services Tax (GST) registration.

4. A summons dated 19.06.2019/20.06.2019 was issued to the petitioner by the Senior Intelligence Officer in the Directorate General of Goods and Services Tax (GST) Intelligence, Mumbai Zonal Unit, Mumbai. It was mentioned therein that a case/inquiry regarding evasion of service tax was being conducted by the said officer under the Finance Act, 1994 read with section 174 of the Central Goods and Services Tax Act, 2017 (briefly ‘the CGST Act’ hereinafter). Senior Intelligence Officer mentioned that he had reasons to believe that petitioner was in possession of facts, documents and things relevant for the said inquiry pertaining to the period prior to GST i.e., prior to 01.07.2017. Accordingly, petitioner was summoned to appear before the said authority on 27.06.2019.

5. Petitioner wrote to the said Senior Intelligence Officer vide letter dated 27.06.2019 in reference to the summons dated 20.06.2019. After giving year-wise service tax break-up for the period 2015-16 upto June, 2017, it was stated that the total liability for the said period was Rs.2,47,32,456.00. Petitioner confirmed and admitted that its service tax liability amounted to Rs.2,47,32,456.00 for the period from 2015-16 upto June, 2017. It was further mentioned that out of the aforesaid amount, an amount of Rs.1,20,60,000.00 had been paid.

6. It may be mentioned that in connection with the said inquiry, statement of Shri. Sanjay Shirke, Director of petitioner company was recorded under section 83 of Chapter V of the Finance Act, 1994 read with section 14 of the Central Excise Act, 1944 read with sections 174 and 70 of the CGST Act on the same day i.e., on 27.06.2019 before the said Senior Intelligence Officer. In the said statement, in response to query No.3, he admitted and accepted revised service tax liability of Rs.2,47,32,456.00 for the period from 2015-16 upto June, 2017 and that service tax of Rs.1,20,60,000.00 was already paid. He further stated that the remaining amount of service tax along with interest and penalty would be paid by end of July, 2019.

7. In the meanwhile, Central Government introduced a scheme called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (briefly ‘the scheme’ hereinafter) as part of Finance (No.2) Act, 2019. 01.09.2019 was the due date fixed for the commencement of the scheme. Rules under the said scheme called Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 were also framed and notified.

8. Petitioner filed declaration in terms of the said scheme on 24.11.2019 under the category “Investigation, Enquiry or Audit” under sub-categorization of "Investigation by DGGI". It was mentioned therein that the quantified amount of service tax due was Rs.2,47,32,456.00 and Rs.1,20,60,000.00 was paid as pre-deposit. Commissioner of Central Goods and Services Tax (CGST) and Central Excise, Mumbai Central wrote to the petitioner vide letter dated 30.01.2020. In the said letter it was stated that petitioner had filed a declaration under the scheme on 24.11.2019 under the category ‘Investigation, Enquiry or Audit’ with sub-categorization of ‘Inve