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IN THE HIGH COURT OF JUDICATURE AT MADRAS
C. SARAVANAN, J.
M/s.Flinto Learning Solutions Private Limited - Petitioner
Versus
The Joint Commissioner of Service Tax (South), Nandanam, Chennai & Ors. - Respondents
W.P.No.264 of 2021 and W.M.P.No.7498 of 2022
Decided On : 02-01-2025
| Table of Content |
|---|
| 1. petitioner applies for resolution of tax liability. (Para 1 , 2 , 3 , 4) |
| 2. new show cause notice complicates petitioner's claims. (Para 6 , 7 , 8) |
| 3. arguments regarding eligibility under svldrs are presented. (Para 9 , 10 , 11) |
| 4. clarification on scheme eligibility. (Para 12 , 13 , 14) |
| 5. respondents argue against petitioner's claims. (Para 15 , 16 , 17 , 18 , 19) |
| 6. court evaluates petitioner's eligibility under svldrs. (Para 21 , 22 , 23 , 24 , 25) |
| 7. conditions for issuance of discharge certificate outlined. (Para 26 , 27) |
| 8. court dismisses petition and directs further action. (Para 28 , 29) |
ORDER :
The petitioner has filed this Writ Petition for a mandamus, to direct the respondents to treat the tax payment of Rs.22,08,034/- paid on 27.12.2019 as fulfillment of tax liability of the petitioner under Form SVLDRS-3 dated 07.01.2020 and for a consequential direction to the respondents to issue Discharge Certificate in Form SVLDRS-4 for settling the dispute of the petitioner under the provisions of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 read with Sabka Vishwas Rule, 2009.
2. The petitioner was a recipient on taxable service of Online Information Database Access and Retrieval Services which was subjected to tax on reverse charge basis in terms of Section 68(2) of the FINANCE ACT , 1994 read with Notification No.30/2012-Service Tax (ST) dated 20.06.2012.
3. It appears that as a recipient of the aforesaid service, the petitioner had failed to pay service tax on reverse charge basis and therefore summons were issued to the petitioner on 12.06.2019. It appears that the Director General of GST Intelligence (Goods and Service Tax) under the GST Act, an Officer of DGGI had sent email to the petitioner on 23.12.2019 and 26.12.2019, whereby, the petitioner was informed that the petitioner was liable to pay the tax of Rs.22,08,034/-.
4. A copy of the said attachment to the email has been kept along with the typed set of papers. The said email is said to have been received by the petitioner from the personal mail ID of the Officer's name Ramesh Babu from his email address dr.aadesh@rediffmail.com and was addressed to one kr sunil@yahoo.com of the petitioner. On receipt of the aforesaid email, the petitioner paid the aforesaid amount of Rs.22,08,034/- on 27.12.2019 and thereafter filed a declaration in Form SVLDRS-1 on 30.12.2019 declaring the total tax liability of Rs.22,08,034/- as under the category of a person making a “Voluntary Disclosure”.
5. The declarations filed by the petitioner in Form SVLDRS-1 on 30.12.2019 was acknowledged in the system and an auto generated email was also sent to the petitioner on 31.01.2020, whereby, the declaration filed by the petitioner on 30.12.2019 in Form SVLDRS-1 was acknowledged. Thereafter, Form SVLDRS-3 was issued to the petitioner. However, after the aforesaid email was received by the petitioner in Form SVLDRS-3 which was downloaded on 31.01.2020, the petitioner did not receive Form SVLDRS-4. Thus, the petitioner has approached this Court.
6. During the interregnum, after filing of the Writ Petition, the petitioner has also received a Show Cause Notice dated 22.12.2020 bearing Show Cause Notice No.40/2020-Service Tax (ST). Show Cause Notice NO.40/2020-Service Tax (ST) dated 22.12.2020 has been issued to the petitioner by the Directorate General of Goods and Services Tax Intelligence, Madurai Regional Unit, wherein, the petitioner has been called upon to pay a sum of Rs.32,29,747/- towards Service Tax, Education Cess, Secondary Higher Education Cess, Swachh Bharat Cess etc., for the period between October 2014 to June 2017.
7. The Show Cause Notice also seeks to appropriate payment of Rs.22,08,034/- paid by the petitioner on 27.12.2019 which was offered by the petitioner towards the tax liability of the petitioner on 30.12.2019 in its declaration in Form SVLDRS-1 dated 30.12.2019. It appears that the Show Cause Notice No.40/2020-Service Tax (ST) was also adjudicated and
A person under investigation is ineligible for voluntary disclosure under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 as per Section 125(1)(f).
The court established that pre-deposits should be deducted only after calculating the relief under the SVLDRS, ensuring accurate determination of tax dues.
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.
Eligibility for the benefits of the SVLDRS Scheme is confirmed when service tax liability is quantified and admitted prior to the cut-off date, regardless of ongoing investigations.
Discharge Certificates issued under the SVLDRS preclude further tax liability once established, affirming the conclusiveness of such documents under the Finance Act, 2019.
The eligibility for SVLDRS requires that no audit quantification occurs before the cutoff date, and adjustments of refunds must follow due process.
The main legal point established in the judgment is that the admission of tax dues by the petitioner and eligibility to avail benefits under the SVLDRS were in line with the legal provisions and obje....
The rejection of an application under the SVLDR Scheme without affording an opportunity to be heard violates the principles of natural justice and offends Article 14 of the Constitution of India. The....
The main legal point established in the judgment is that the Designated Committee under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, does not have the jurisdiction to deny the benefit ....
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 ....
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