Poornima Rajkumar Chawla vs Union Of India

Judicial Analysis Court Copy Headnote Facts Arguments Court observation

2023 Supreme(Guj) 304

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SONIA GOKANI, NISHA M. THAKORE, JJ.
Poornima Rajkumar Chawla – Petitioner
Versus
Union Of India – Respondent
R/Special Civil Application No. 6239 Of 2021
Decided On : 21-02-2023

Advocates Appeared:
For the Petitioner: Mr. D. K. Trivedi.
For the Respondent: Mr. Nikunt K. Raval.

Headnote:
Constitution of India,1950 - Articles 226 and 227 - Finance (No.2) Act, 2019 - section 129 and 131 – Failed to pay government dues against the excise duty - Release attachment/bojha (claim) on land - Seeking direction to release - Whether the respondent authorities can be permitted to continue with attachment on land in question despite issuance of discharge certificate contrary to what is provided in Section 129 of the Finance Act – Held, Order in original has been placed on record and it appears from order that adjudicating authority had followed due procedure prescribed under law while imposing penalty and interest and giving option for payment of redemption fine in lieu of confiscation - When order of confiscation remains unchallenged, land stood absolutely vested in Central Government, which cannot be restored on payment of redemption fine to the tune of Rs. 3,45,000:00 - In facts of case once assessee accepted order of confiscation, there was no question of redemption fine - Voluntary act of payment of writ applicant of redemption fine of Rs. 3,45,000 belatedly in SVLDR’s scheme and issuance of discharge certificate will in no manner lead to removal of attachment/boja on land in question - Petition disposed of.

JUDGMENT :

(Nisha M. Thakore, J.)

1. By way of this petition, the writ applicant has approached this Court under Articles 226 and 227 of the Constitution of India, seeking direction against the respondent authorities to immediately release attachment/bojha (claim) on land belonging to M/s. Madhu Dyeing situated at 237, Saijpur-Gopalpur Road, Nr. Sahwaji Octroi Naka, Narol, Ahmedabad.

2. The facts as set out in detail in the present petition, are briefly summarized as under:

2.1 The writ applicant is the widow and the legal heir of late. Shri Rajkumar Chawla, who was the proprietor of M/s. Madhu Dyeing. As M/s. Madhu Dyeing had failed to pay the government dues against the excise duty, which came to be crystallized in four different orders in original applications before the Commissioner of Central Excise (Adjudication). The said different orders were passed by the authorities, which was determined as under:

Sr. No.	OIO No. & Date	Order passed by	Government dues to be recovered (Rs. In actual)
			Duty	Penalty/Personal Penalty	Total
1	27/98 dated 30-4-1998	The Commissioner of Central Excise, (Adjudication), Mumbai	15 Lacs	34.54 Lacs	49.54 Lacs
2	221/ Addl.Com/ 2000 dated 7-3-2001	The Additional Commissioner of Central Excise, Ahmedabad	12.06 Lacs	12.06 Lacs	24.12 Lacs
3	222/Addl. Com/ 2000 dated 7- 3-2001	The Additional Commissioner of Central Excise, Ahmedabad	4.9 Lacs	4.9 Lacs	9.8 Lacs
4	115/ Addl. Com/20 01 dated 8-5-2001	The Additional Commissioner of Central Excise, Ahmedabad	2.95 Lacs	2.97 Lacs	5.89 Lacs
		Total	34.88	54.47	89.35

2.2 It is contented by the petitioner that in absence of the payment of such outstanding dues, more particularly in order in original no. 27/98, the Central Excise Department had created charge/bojha/attachment of land of M/s. Madhu Dyeing. On 19.06.2006, Mr. Rajkumar Chawla expired, who was the sole proprietor of M/s. Madhu Dyeing, therefore, the entire liability of the arrears of aforesaid dues was on the petitioner, who was the wife of the deceased.

2.3 On 01.08.2019, the Finance (No.2) Act, 2019 was published in the Gazette of India Extraordinary. Chapter V of the such notification relates to Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (hereinafter to be referred as “SVLDRS Act”). Thereafter, vide separate Notification No.04/2019-Central Excise- N.T. dated 21.08.2019, the Central Government had appointed 01.09.2019 as the date on which the aforesaid scheme came into force. By Notification No.05/2019, Central Excise-N.T. dated 21.08.2019, the Central Government had made Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 (hereinafter to be referred as “SVLDRS Rules”).

2.4 On 31.12.2019, the writ applicant submitted SVLDRS-1 declaring the basic duty in arrears of an amount of Rs.12,05,862/- and penalty of equivalent amount in accordance with Order-in- Original No.221/ADDL.COM/2000 received on 07.03.2001. The tax dues less tax relief was shown as Rs.4,82,344.80 ps. On 31.12.2019, the writ applicant also submitted SVLDRS-1 declaring basic duty in arrears as Rs.4,90,200/- and penalty of equivalent amount in accordance with Order-in-Original No.222/ADDL. COM/ 2000 received on 07.03.2001. The tax dues less tax relief was shown as Rs.1,96,080/-. On 31.12.2019, the writ applicant also submitted SVLDRS-1 declaring basic duty in arrears of Rs.29,298/- and penalty of equivalent amount in accordance with Order-in-Original No.115/ADDL.COM/2001 received on 08.05.2001. The tax dues less tax relief was shown as Rs.11,719.20 ps. On 31.12.2019, the writ applicant also submitted SVLDRS-1 declaring basic duty in arrears of Rs.24,53,987.35 ps. and penalty of equivalent amount in accordance with Order-in- Original No.27/98 received on 30.04.1998. The tax dues less tax relief was shown as Rs.6,00,000/-. The pre deposit/an