2020 (11) TMI 665 - HC - Central Excise

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Misdeclaration in SVLDRS-1 Form - rejection of benefit under the scheme on the ground that the amount of penalty had not been stated in the SVLDRS-1 form which makes it an incorrect declaration - HELD THAT - The issue as to whether an inadvertent mistake as regards the penalty imposed being not correctly stated in the SVLDRS-1 form, it has been decided by this Court in its judgment 2020 (6) TMI 38 - GAUHATI HIGH COURT where it was held that This writ petition also stands disposed of by requiring the petitioner to submit an application before the respondent authorities for correction to be made in the information provided in the Form SVLDRS-1 as regards the penalty imposed and upon such application being made, the respondent authorities would pass a reasoned speaking order thereon - Petition disposed off.

Summary

Issues: Rejection of claim under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 due to inadvertent mistake in SVLDRS-1 form.

Analysis:
The petitioner was penalized by the Commissioner, Central Excise and Service Tax, Shillong, and sought benefits under the Sabka Vishwas Scheme, 2019 by submitting the SVLDRS-1 form. However, due to an inadvertent mistake, the penalty amount was not mentioned in the form, resulting in the rejection of their claim. The court deliberated on whether such a mistake should disentitle the petitioner from the scheme's benefits or if it could be corrected. The judgment highlighted the distinction between deliberate mistakes aimed at claiming undue benefits and inadvertent errors that do not confer any undue advantage to the party. In this case, the mistake of not mentioning the penalty amount was considered curable as it did not grant the petitioner any unwarranted benefit under the law.

The court emphasized that the Scheme 2019 does not explicitly bar individuals penalized from availing its benefits. In fact, mentioning the penalty amount could potentially lead to a greater exemption for the petitioner. The judgment in WP(C) No. 2149/2020 was cited to support the argument that inadvertent mistakes, like the one made by the petitioner, should not automatically disqualify them from the scheme's benefits. The court directed the petitioner to submit an application for correction of the information in the SVLDRS-1 form regarding the penalty imposed. Upon receiving the application, the respondent authorities were instructed to issue a reasoned order within two months, allowing the correction to be made within 15 days of obtaining the certified copy of the order.

In conclusion, the writ petition was disposed of based on the agreement between the parties and the precedent set by the earlier judgment. The court's decision focused on rectifying the inadvertent mistake in the form to ensure that the petitioner could rightfully avail the benefits under the Sabka Vishwas Scheme, 2019.