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IN THE HIGH COURT OF JHARKHAND AT RANCHI
APARESH KUMAR SINGH, DEEPAK ROSHAN, JJ.
M/s Om Prakash Kashyap, a Proprietorship Firm, through its Proprietor – Appellant
Versus
The Union of India – Respondent
W.P.(T) No. 1436 of 2020
Decided on : 04-01-2023
SABKA VISHWAS - LEGACY DISPUTE RESOLUTION - Section 125, Section 121, Section 123, Section 124, Section 126, Section 127 - The court discussed the provisions of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, including the definition of 'amount in arrears', 'tax dues', conditions for eligibility to make a declaration, and the role of the Designated Committee. The court highlighted the eligibility conditions, the distinction between 'arrears' and 'litigation' categories, and the jurisdiction of the Designated Committee in denying the benefit of the Scheme based on the filing of an appeal by the Department.
Fact of the Case:
The petitioner filed a writ application seeking to quash the rejection of their declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and to direct the respondents to accept the declaration and extend the benefit of the Scheme to the petitioner. The petitioner's declaration was rejected on the ground that the Department intended to file an appeal against the order-in-original, which the petitioner contended was beyond the scope of the Scheme.
Finding of the Court:
The court found that the rejection of the petitioner's declaration was beyond the jurisdiction and powers of the Designated Committee under the Scheme. The court directed the respondents to reconsider the petitioner's declaration and extend any consequential benefits within four weeks.
Issues: The issues revolved around the categorization of the petitioner's case under the Scheme as 'arrears' or 'litigation', the eligibility conditions for making a declaration, and the jurisdiction of the Designated Committee to deny the benefit of the Scheme based on the Department's intention to file an appeal.
Ratio Decidendi: The court held that the Designated Committee did not have the jurisdiction to deny the benefit of the Scheme to the petitioner based on the Department's intention to file an appeal. The court emphasized the distinction between 'arrears' and 'litigation' categories and the eligibility conditions for making a declaration under the Scheme.
Final Decision: The court allowed the writ application, quashed the rejection of the petitioner's declaration, and directed the respondents to reconsider the declaration and extend any consequential benefits within four weeks.
JUDGMENT :
Heard learned counsel for the parties.
2. The instant writ application has been preferred for following reliefs:-
(ii) For issuance of an appropriate writ/order/direction, including Writ of Declaration, declaring that the order dated 15.05.2020 passed by Respondent No.2 (Annexure-11), wherein Declaration filed by the petitioner under Section 125 (2) of SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019, in Form SVLDRS-1, has been rejected, is wholly beyond jurisdiction and beyond the powers vested upon the Designated Committee in terms of Section 126 of SABKA VISHWAS (LEGACY DISPUTE RESOLUTION) SCHEME, 2019, (herein after referred to as “Scheme of 2019”.
(iii) For issuance of an appropriate writ/order/direction, including Writ of Mandamus, directing the Respondents to accept the Declaration filed by the petitioner under Section 125(2) of the Scheme of 2019 and to extend the benefit thereof to the petitioner by issuance of Discharge Certificate to the petitioner after accepting the amount of Rs. 33,69, 111/- which the petitioner is liable to deposit under the Scheme of 2019.
3. Mr. Sumit Gadodia, learned counsel for the petitioner submits that in the instant case a Demand-cum-Show Cause Notice was issued to the petitioner for levy of service tax including cess amounting to Rs.2,52,92,695/- on 28th October 2019 (Annexure-1). The order-in-original was passed on 14th January 2020 (Annexure-2) by which the adjudicating authority (respondent no.2) confirmed the demand of Rs.71,18,136/- only. In the meantime, the Central Government brought a scheme known as Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Further, the Government had extended the cut-off date to avail the benefit of the Scheme from 31st December 2019 to 15th January 2020 vide notification no.07/2019 dated 31st December 2019. This Petitioner had undertaken not to prefer an appeal during the proceedings before the adjudicating authority as has also been recorded in the order-in-original at page-68 of the writ petition.
Accordingly, the Petitioner filed a declaration in form SVLDRS-1 under the category of “Arrears” and “Tax Dues less Tax Relief” was computed automatically for an amount of Rs.33,69,111/- payable by the petitioner after adjustment of the amount of Rs.15,02,951/- already deposited by the petitioner.
Thereafter, the Petitioner was served with a notice in Form SVLDRS-2 by the designated committee that the respondent no.1 has taken a decision to file an appeal against the order-in-original. On that basis the case of the petitioner falls under “litigation category” and not under “arrears category”. The Petitioner duly replied disagreeing with the notice in SVLDRS-2A (Annexure-10). However, on 15th May 2020 his declaration in form SVLDRS-1 was rejected by respondent no.2 on the sole ground that a decision has been taken to file an appeal against the order in original by the respondents; thus, the benefit of scheme cannot be extended to the petitioner under “arrears” category. At this stage it is pertinent to mention here that the appeal by the Department was in fact filed after rejection of the declaration by the petitioner in form SVLDRS-1 on 25th June 2020.
4. Learned counsel for the petitioner has taken us to the relevant provision of Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, in particular Section 121(c) which defines ‘amount in arrears’. It is submitted that under Sub-clause (i) of Sub-section (c) of Section 121, a declarant [defined in Section 121(h)] could file a Declaration within the category ‘amount in arrears’ only if no appeal has been filed by the declarant before expiry of period of time in filin
Having regard to the objective of the scheme, in a case of this nature, a reasonable and pragmatic approach has to be adopted so that a declarant can avail the benefits of the scheme; a declarant who....
The main legal point established in the judgment is the need for a liberal interpretation of remedial statutory schemes like the Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 to achieve their ....
The main legal point established in the judgment is that a declarant under the SVLDR Scheme can file a declaration under the 'arrears' category if the assessment order has already determined the tax ....
The main legal point established is that under the SVLDR Scheme, cases with finality in duty/tax dues as on the 'cut off date' are classified under the 'arrears' category, and voluntary withdrawal of....
Non-compliance to the principles of natural justice by the designated committee while rejecting a declaration would impeach the decision making process rendering the decision invalid in law.
Show cause notices pending adjudication as on 30th June 2019 are eligible for relief under the SVLDRS 2019 scheme.
The main legal point established in the judgment is the interpretation of the eligibility criteria and key legal provisions under the Sabka Vishwas Scheme, 2019, to determine the petitioner's entitle....
Scheme - Verification by designated committee and issue of estimate - Central excise duty - Once a valid (first) declaration had been filed on SVLDRS-1, it had to be processed by Designated Committee....
Eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 is contingent upon the quantification of duty demand on or before the 30th day of June, 2019, and the admission of tax lia....
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