The main legal point established in the judgment is the need for authorities to properly verify and consider the claims of assessees based on material while determining the estimated amount of payment under the SVLDRS scheme.

JUDGMENT

Sunil P. Deshmukh, J. - Rule. Rule is made returnable forthwith. Heard learned Counsel appearing for the parties finally, by consent.

2. The Petitioner's case is that it had been engaged in providing works contract services and had been holding registration under Service Tax Law. Based on certain investigation, a show cause notice dated 20.04.2012 had been issued to Petitioner proposing recovery of service tax to the tune of Rs. 3,78,88,322/- alongwith interest and to impose penalties with reference to allegations levelled therein.

3. Ms. Manasi Patil, learned counsel for the petitioner submits that in the ensued proceedings before adjudicating authority, certain amounts were deposited on various dates aggregating to Rs. 32,12,000/- towards service tax demanded under the show cause notice purporting to give its particulars in a table in paragraph 5 of the Petition, and purporting to support the same by copies of corresponding challans annexed to the Writ Petition. It is contended that in the proceedings, the Commissioner had been apprised of deposit of amount of Rs. 32,12,000/- towards the outstanding demanded amount, supporting the same with the challans.

4. During the aforesaid proceedings, the Finance ( No. 2) Act, 2019 was enacted / introducing "Sabka Vishwas (Dispute Resolution) Scheme, 2019" (SVLDRS) for resolution of pending tax disputes under Central Excise and Service Tax Laws as on 30.06.2019. To avail of the benefit of the scheme, it had been imperative that the dispute ought to be pending as on 30.06.2019 at any stage with a further rider that where a final hearing in the matter had taken place, those cases were not to be eligible for the scheme.

5. In Petitioner's case, Order-in-Original had been passed on 09.07.2019 by the Commissioner without deduction of the amount of Rs. 32,12,000/- confirming the demanded amount alongwith interest and penalties.

6. Since final hearing in Petitioner's case before the Commissioner had taken place on 14.05.2019 and order had been awaited, as such, there was a restraint on the Petitioner from opting for the benefit of the scheme.

7. Later on, Central Board of Indirect Taxes & Customs under its circular bearing No. 1074/07/2019-CX dated 12.12.2019 clarified, inter alia, that in the cases which were heard on or before 30.06.2019 and order has been passed after 30.06.2019, such assessees would also be able to opt for the benefit of the scheme subject to condition that they would apply under the category "arrears" and pay 60% of the disputed tax dues with an undertaking that the order would not be challenged further.

8. Learned counsel for the Petitioner submits that, in view of aforesaid circular, Petitioner had opted for the Sabka Vishwas dispute resolution scheme (SVLDRS) and had filed necessary declaration in Form SVLDRS-1 showing tax arrears of Rs. 3,78,88,322/- and pre-deposit of duty as Rs. 2,73,00,045/- and tax dues (after tax relief) were shown as Rs. 63,52,966.20/-, with the pre-deposit comprising the amount of Rs. 32,12,000/- paid by the Petitioner from time to time in the proceedings after show cause notice. The Petitioner had communicated to the Commissioner of CGST, Mumbai that they have opted for settlement under SVLDRS scheme under the category "arrears" against the order dated 09.07.2019 passed by the Commissioner and that they would not file any proceedings against said order.

9. The Designated Committee, however, issued under Section 127 of the Finance (No.2) Act, 2019 Form SVLDRS-2 on 22.02.2020 showing estimated amount payable at Rs. 82,80,167/- instead of Rs. 63,52,966.20/- as contained in Form SVLDRS-1 declaration filed by the Petitioner.

10. The Petitioner did not agree with the estimate of tax payable of Rs. 82,80,167/- as communicated by the Designated Committee without considering and giving effect to payment of Rs. 32,12,000/- during proceedings and had uploaded its written submissions / reasons for disagreement in Form SVLDRS-2A on 24.02.2020. Pursuant to