2023 Supreme(Cal) 292

IN THE HIGH COURT AT CALCUTTA
MD. NIZAMUDDIN, J.
GE Power India Limited - Appellant
Versus
Union of India & Others - Respondent
WPA. No. 7197 of 2020
Decided On : 06-02-2023

Show cause notices pending adjudication as on 30th June 2019 are eligible for relief under the SVLDRS 2019 scheme.

Headnote:

SVLDRS 2019 - Rejection of Applications - Show Cause Notices Pending Adjudication - Interpretation of Scheme Provisions - Relief Granted: 1. Whether on the facts and in the circumstances of the case, impugned orders passed under the 'SVLDRS' 2019, by the respondent authority concerned rejecting the applications of the petitioner by holding that the petitioner submitted the applications in the wrong category as showing 'SCN duty pending' and that the two show cause notices in question had already been adjudicated by one order-in-original and upheld by the CESTAT and High Court, is erroneous in law and perverse? 2. Whether on the facts and in the circumstances of the case applications filed by the petitioners on the date when the aforesaid scheme was existing, can show cause cum demand notices in question be called 'finally heard' for denying the benefit under the said Scheme when the order-in-original on the show cause notices in question were set aside by the CESTAT and the matter was remanded back to the adjudicating authority for readjudication of the same and in view of the admitted fact that on or before the date of filing the application under the aforesaid scheme no final hearing was taken place and no order was passed by the adjudicating authority after the order of remand by CESTAT on the show cause cum demand notices? 3. Whether on the facts and in the circumstances of the case and in view of Section 124(1)(a) of the aforesaid Scheme can the 'tax dues' relatable to show cause notices in question be called 'not pending' on 30th June, 2019 or on the date of filing the application under the aforesaid scheme during the existence of the aforesaid scheme? 4. Whether on the facts and in the circumstances of the case, defence of the respondents in rejecting the application of the petitioner by relying on Section 125(1)(a) of the aforesaid scheme, is tenable in the eye of law? 5. Whether on the facts and in the circumstances of the case stand of the respondents that no relief can be granted to the petitioner under the aforesaid Scheme since the same is not in existence now, is tenable in the eye of law though the applications under the aforesaid Scheme were filed before the expiry of the same? The impugned orders dated 12th February, 2020 rejecting the petitioner's applications under SVLDRS 2019, are arbitrary, invalid, perverse and not tenable in the eye of law.

Fact of the Case:

Petitioner challenged the rejection of its applications under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) 2019. The authority rejected the applications on the grounds that they were filed in the wrong category and that the show cause notices had already been adjudicated. The petitioner contended that the show cause notices were pending adjudication as on 30th June 2019 and that it was eligible for relief under the scheme.

Finding of the Court:

The Court held that the impugned orders rejecting the petitioner's applications under the SVLDRS 2019 were arbitrary, invalid, perverse, and not tenable in the eye of the law. The Court found that the show cause notices were pending adjudication as on 30th June 2019 and that the petitioner was eligible for relief under the scheme.

Issues: 1. Whether the petitioner's applications were filed in the wrong category? 2. Whether the show cause notices had already been adjudicated? 3. Whether the show cause notices were pending adjudication as on 30th June 2019? 4. Whether the petitioner was eligible for relief under the SVLDRS 2019 scheme?

Ratio Decidendi: The Court held that: 1. The petitioner's applications were not filed in the wrong category. 2. The show cause notices had not been adjudicated. 3. The show cause notices were pending adjudication as on 30th June 2019. 4. The petitioner was eligible for relief under the SVLDRS 2019 scheme.

Final Decision: The Court set aside the impugned orders dated 12th February 2020 rejecting the petitioner's applications under SVLDRS 2019 and directed the respondents to grant appropriate relief to the petitioner under the scheme.