2020 (1) TMI 999 - HC - Central Excise

Benefit in the Arrears Category of SAB KA VISHWAS (LEGACY DISPUTE RESOLUTION) Scheme 2019 (svldrs scheme) - HELD THAT - There is force in the submission of the learned counsel for the petitioners that the Scheme in question being for the benefit of Assesses needs to be construed liberally to effectuate the purpose and therefore, if the petitioners claim cannot be considered under the Arrears Category, they should be permitted to avail the benefit under any other Category into which their case is fit; the respondents in their Statement of Objection dated 09.01.2020 at paragraph 6 have specifically stated that though the petitioners are not entitled to stake their claim under Arrears Category, they may opt for the benefit under Voluntary Disclosure Category; the statement of the learned Panel Counsel for the Revenue that petitioners claim would be considered under this Category if they opt, is placed on record. These writ petitions succeed in part - a Writ of Mandamus issues to the respondent Revenue to consider petitioners claim for the benefit under Voluntary Disclosure Category of SAB KA VISHWAS (LEGACY DISPUTE RESOLUTION) Scheme 2019, subject to they making an appropriate application as prescribed by law and within time.

Summary

Issues:
Petitioners invoking the writ jurisdiction for direction under SAB KA VISHWAS Scheme 2019, resistance by respondents, eligibility under Arrears Category, consideration under Voluntary Disclosure Category, assurance by Revenue, relief granted by the court.

Analysis:
The judgment pertains to writ petitions filed by petitioners seeking direction under the SAB KA VISHWAS (LEGACY DISPUTE RESOLUTION) Scheme 2019. The respondents, represented by their Senior Panel counsel, filed a Statement of Objections resisting the writ petitions after notice was served. The court considered the arguments of both parties and reviewed the petition papers to determine the relief to be granted to the petitioners.

The Scheme provides relief to assesses based on different Categories, including the Arrears Category. The Circular dated 12.12.2019 outlines the conditions for cases eligible under the Arrears Category. The court noted that the petitioners' claim did not merit consideration under the Arrears Category as their tax arrears were yet to be assessed, and adjudication was pending, as argued by the Revenue's counsel.

However, the court acknowledged the need to construe the Scheme liberally for the benefit of assesses. It was highlighted that if the petitioners' claim could not be considered under the Arrears Category, they should be allowed to avail benefits under any other suitable Category. The Revenue, in their Statement of Objections, suggested that the petitioners could opt for the Voluntary Disclosure Category, indicating that their claim would be considered under this Category if chosen by the petitioners.

To address the petitioners' apprehension of facing a statutory block under the Voluntary Disclosure Category, the Revenue's counsel assured that such concerns were unwarranted and that the petitioners' application would be considered under this Category. The court, therefore, directed the Revenue to consider the petitioners' claim under the Voluntary Disclosure Category of the Scheme, subject to the petitioners submitting an appropriate application within the specified time frame.

The judgment granted relief to the petitioners in part, issuing a Writ of Mandamus to the Revenue to consider their claim under the Voluntary Disclosure Category. It was further ordered that no precipitatory action should be taken against the petitioners until their claim was duly considered and the outcome communicated. The judgment concluded by stating that no costs were to be imposed in this matter.