IMPORTANT POINT
The court established that pre-deposits should be deducted only after calculating the relief under the SVLDRS, ensuring accurate determination of tax dues.

JUDGMENT :

BHARGAV D. KARIA, J.

1. Heard learned advocate Mr. Dhaval Shah for the petitioner and learned advocate Mr. Jay Mehta for the respondent Nos.2 to 4.

2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Mehta waives service of notice of rule for the respondents.

3. Having regard to the controversy involved which is in a narrow compass, with the consent of the learned advocates for the parties, the matter is taken up for hearing.

4. By way of this petition under Article 226 of the Constitution of India, the petitioner has challenged the communication dated 14.08.2020 whereby, the declaration/application filed by the petitioner under Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 (for short ‘SLVDRS’) was not accepted. The petitioner was served with notice of recovery of Rs. 30,34,955/-.

5. The petitioner is engaged in business of production and clearance of finished goods viz. Organic Chemicals falling under Chapter 29 of the First Schedule to Central Excise Tariff Act,1985.

6. A show-cause notice dated 28.03.2018 was issued upon the petitioner to recover service tax on payment made to the Foreign Government Agencies for statutory fees/charges for the licenses and permissions. After considering the detailed reply, the Order-in-Original dated 27.03.2019 was passed imposing penalty of Rs. 3,03,495/- with service tax amounting to Rs. 30,34,955/- and interest thereon.

7. Being aggrieved, the petitioner preferred the appeal before the Commissioner (Appeals) after deposit of Rs. 2,27,622/- as mandatory pre-deposit to file appeal as per the provision of section 35F of the Central Excise Act,1944 read with section 83 of the Finance Act,1994.

8. The First Appellate Authority dismissed the appeal by order dated 30.08.1999 and confirmed the Order-in-Original.

9. Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 was introduced w.e.f. 5th July,2019 for resolving pending disputes arising out of the Central Excise Act, Service Tax etc. The petitioner therefore, without challenging the appeal order, filed an application in Form SVLDRS-1 as the demand confirmed under the Order-in- Original became the tax dues and the amount in arrears. On 30.12.2019, the petitioner declared the amount of Rs. 6,82,805/- as tax dues payable.

10. The respondent No.3-Designated Committee under the SVLDRS issued Form SVLDR-2 on 02.01.2020 as prescribed under sub-rule (3) of Rule 6 of Sabka Vishwas Legacy Dispute Resolution Rules, 2019 [for short ‘the Rules’] and indicated that Rs. 11,22,933/- is payable by the petitioner instead of Rs. 6,82,805/-.

11. The petitioner submitted Form SVLDR-2A on 06.01.2020 along with written submission and rectified the amount payable to the tune of Rs. 9,86,360/-.

12. Respondent No.3, without considering the written submissions and without providing opportunity of hearing to the petitioner, issued Form SVLDRS-3 on 11.02.2020 directing the petitioner to deposit Rs. 11,22,933/-.

13. The petitioner filed detailed submissions dated 12.02.2020 with a request to correct the amount payable by the petitioner.

14. The petitioner submitted further detailed submissions on 04.03.2020 reiterating the stand that the petitioner is entitled to pay only Rs. 9,86,360/- as under: