Discharge Certificates issued under the SVLDRS preclude further tax liability once established, affirming the conclusiveness of such documents under the Finance Act, 2019.

JUDGMENT :

ADVAIT M. SETHNA, J.

1. The Petitioner has approached this Court by filing the present Petition under Article 226 of the Constitution of India praying for the following substantive reliefs which read thus:-

“(a) that this Hon'ble Court be pleased to issue a Writ of Quo Warranto or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality of the provisions set aside and quash the show cause notice dated 16.03.2021 (Exhibit "A1") issued by Respondent No. 6 and show cause notice dated June, 2022 issued by Respondent No. 5 (Exhibit "A2").

(b) that this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality of the provisions hold that discharge certificate dated 22.02.2020 discharges the Petitioner from the payment of any further duty, interest, penalty and late fees with respect to communication dated 22.03.2019.

(c) that this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality of the provisions direct the Respondents to consider the declaration dated 14.12.2019 ARNNo.LD1412190000187 under investigation category, in terms of section 128 of the SVS, 2019 and accordingly grant of Rs.8,41,577.20/- made by the Petitioner to avail the benefit under the scheme.”

2. Heard learned counsel for the parties and with their assistance we have perused the record.

3. Rule. With consent of the parties, the Rule is made returnable forthwith.

4. The fulcrum of the issue in the present proceedings relates to the correctness and legality of the Petitioner’s case that after obtaining Discharge Certificate dated 22 February 2020 from the Respondents under the SVLDRS scheme, whether the Petitioner can still be fastened with any liability in terms of interest, by issuing a show cause cum demand notice in respect of a period, for which the Petitioner has already discharged such tax liability.

5. The facts relevant for the purpose of adjudication of the petition are set out below:-

Factual Matrix:

6. The Petitioner is a private limited company inter alia engaged in providing advisory services. It is registered as service provider under the Finance Act, 1994.

7. An audit was conducted into the Petitioner’s financial affair and records for the period 2013-2014 to 2017-2018.

8. An email dated 22 March 2019 was addressed by the fourth Respondent to the Petitioner intimating the Petitioner about certain discrepancy which were observed during the audit proceedings. Pursuant thereto, the Petitioner made payments of Rs.25,294/- and Rs.24,738/- in light of the audit findings.

9. It was on 5 July 2019 that the Government proposed the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (“ SVLDRS ” for short). It was notified on 21 August 2019 vide notification No