[2026:RJ-JD:4133-DB]

HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Civil Writ Petition No. 3703/2023 Sahani Electricals, A Proprietorship Firm, Having Its Place Of Business 18, Vrindavan Dham, Road No. 3 Opp. Deep Jyoti Apartment, New Bhopalpura, Udaipur-313001, Through Its Proprietor Asheshwar Sahani S/o Parmeshwar Sahani Aged About 50 Years, R/o 102, Yadav Colony, Ambamata Scheme, Udaipur.

----Petitioner Versus

1. Central Board Of Indirect Taxes And Customs, Dept Of Revenue, Ministry Of Finance, North Block, New Delhi Through Its Chairman.

2. Joint Commissioner, Central Excise And Central Goods And Service Tax Commissionerate, Udaipur.

3. Superintendent (Anti Evasion), Central Excise Commissionerate, Udaipur.

----Respondents For Petitioner(s) : Mr. Sharad Kothari For Respondent(s) : Mr. Rajat Arora assisted by Mr. Lucky Rajpurohit HON'BLE MR. JUSTICE ARUN MONGA HON'BLE MR. JUSTICE YOGENDRA KUMAR PUROHIT

Order

22/01/2026

1. The present writ petition has been filed by the petitioner challenging the action of the respondent department in denying the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (“SVLDRS”). A show cause notice demanding service tax along with interest and penalty was issued to the petitioner. With a view to settling the dispute, the petitioner applied under the SVLDRS, and the declaration so filed was accepted by the Designated Authority confirming the amount payable as Rs.9,02,664/- but the petitioner failed to meet the payment deadline.

2. Briefly stated, the petitioner is a registered tax entity and engaged in works contract–related services. Based on departmental intelligence, an investigation was initiated, pursuant to which letters, reminders, and summons were issued by the Superintendent (Anti-Evasion), Central Excise Commissionerate, Udaipur, calling upon the petitioner to produce documents.

2.1. A show cause notice was thereafter issued proposing recovery of service tax amounting to ₹86,26,084/- along with interest and penalties. Upon adjudication, an Order-in-Original dated 28.12.2017 was passed confirming a reduced demand of ₹36,58,728/- together with interest and penalties.

2.2 Aggrieved thereby, the petitioner preferred an appeal before the Commissioner (Appeals), Central Excise & CGST, Jodhpur, which was dismissed vide Order-in-Appeal dated 04.12.2018.

2.3 While petitioner was contemplating further legal remedies, the Union Government introduced the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, to resolve pending legacy disputes relating to service tax. After verifying eligibility with departmental officers, the petitioner filed a declaration in Form SVLDRS-1 on 20.12.2019.

2.4 The Designated Committee issued Form SVLDRS-3 dated 10.01.2020, determining the amount payable by the petitioner as ₹9,02,664/-, payable within the prescribed period. Owing to the outbreak of the COVID-19 pandemic, the payment deadline under the Scheme was extended up to 30.06.2020.

2.5 During the extended period, the petitioner suffered acute personal and business hardship due to the demise of his father- in-law during the COVID lockdown, severe travel restrictions, and complete disruption of business activities. On account of these unavoidable circumstances, the petitioner could not deposit the determined amount within the extended deadline.

2.6 The petitioner submitted a detailed representation dated 14.10.2020, followed by reminders, requesting consideration of the exceptional circumstances and acceptance of payment under the Scheme. However, no relief was granted.

2.7 Thereafter, the petitioner was issued a recovery notice dated 20.10.2020 for the original demand as confirmed vide Order-in-

Appeal dated 04.12.2018.

2.8 Acting on the bona fide belief that the dispute would stand resolved under the SVLDRS, the petitioner had not earlier pursued an appeal before the CESTAT. Upon receipt of the recovery notice, the petitioner filed an appeal before the CESTAT along with an application for condonati