2021 (3) TMI 1018 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Deduction of amount of pre-deposit made at any stage of appellate proceedings during the course of enquiry, investigation or audit, made while issuing statement indicating the amount payable by the declarant - HELD THAT - The Estimation as made in Form SVLDRS-2 at Annexure-C dated 28.11.2019 is set aside with a direction to the respondent Authority to make a fresh Estimate in SVLDRS-2. Consequently, the Statement under Section 127 as per Annexure-G dated 27.02.2020 is set aside. The first respondent to re-work the statement in SVLDRS-3 after taking into credit of the admitted deposit of ₹ 3,81,513/- as already indicated in the SVLDRS-3 enclosed at Annexure-G and also to take a decision as regards the other two pre-deposits of the petitioner stated to be available for appropriation of ₹ 8,48,618/- and ₹ 8,48,617/- as per the Challans dated 22.03.2013 and 30.04.2013 respectively and accordingly re-consider the declaration in Form No.1 at Annexure-B. It is made clear that the Authority while considering the same is to limit itself in exercising its power strictly within the provisions of the Scheme and cannot enter into any adjudicatory exercise - the respondent-Authority is directed to issue the Discharge Certificate in terms of Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019. Petition disposed off.

Summary

Issues:
Petitioner seeks to quash estimation and statement under SVLDRS-2 & SVLDRS-3, seeks mandamus for acceptance of declaration with 'Nil' tax payable, and issuance of SVLDRS-3 and Discharge Certificate. Dispute regarding pre-deposit adjustments under SVLDRS Scheme.

Analysis:
1. The petitioner, a Firm renting properties, filed a writ petition to quash the estimation and statement issued by respondent No.1 under SVLDRS-2 and SVLDRS-3. Petitioner requested mandamus for acceptance of a 'Nil' tax payable declaration and issuance of SVLDRS-3 and Discharge Certificate.
2. The petitioner submitted an application under SVLDRS-1 detailing show cause notice particulars and pre-deposits. The estimate in SVLDRS-2 did not include pre-deposit details, leading to petitioner's representation to the Designated Committee.
3. The petitioner contended that pre-deposits made during proceedings should be deducted while indicating the amount payable, as per Section 124(2) of SVLDRS.
4. Respondents argued that some deposits may have been appropriated, and certain pre-deposits cannot be adjusted if unrelated to the show cause notice subject to SVLDRS Scheme.
5. The Court highlighted the importance of considering all pre-deposits made by the petitioner, as per SVLDRS guidelines and Circulars issued by the Department.
6. The Court emphasized that pre-deposits made after the show cause notice issuance should be credited while determining the amount payable by the declarant under SVLDRS.
7. The Court dismissed the Department's argument on time specificity of SVLDRS, citing a communication allowing manual processing of declarations in certain cases.
8. The Court set aside the initial estimation and statement, directing the respondent Authority to rework the statement in SVLDRS-3, considering all pre-deposits made by the petitioner and issuing the Discharge Certificate accordingly.

This detailed analysis covers the issues raised by the petitioner regarding the estimation, pre-deposit adjustments, and the Court's directions for the respondent Authority to re-evaluate the statement under SVLDRS-3 and issue the Discharge Certificate in compliance with the SVLDRS Scheme.