2021 (5) TMI 923 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - compliance with the requirement to ascertain amount claimed as pre-deposit with respect to the dispute, that the amount of pre-deposit has not been appropriated for any other demand other than the demand reflected in the show-cause notice and that there have to be verification as to the factual assertions of the petitioner by looking into the challans of the petitioner - HELD THAT - This court has disposed of W.P.No.11485/2020 on 17.02.2021 2021 (3) TMI 1018 - KARNATAKA HIGH COURT examining in detail the aspect relating to adjudication of pre-deposit and accordingly, no detailed order as regards to the legal contentions advanced in common in the present petition as were raised in W.P.No.11485/2020 is required while observing that legal aspects have been elucidated in the said order - While taking note of the observations made in W.P.No.11485/2020, the estimate made in Form SVLDRS-2 and 3 are set aside. The first respondent to re-work the statement in SVLDRS-3 after arriving at a conclusion regarding the deposit over and above the amount of ₹ 20,27,249/- that has already been given credit as per the earlier SVLDRS-2 form, which is now set aside. Insofar as other deposits are concerned, the respondents to verify after taking note of the submissions at Annexure-'E' to the petition and affording an opportunity of personal hearing for the purpose of clarification by the petitioner and then arrive at a fresh statement in SVLDRS-3. While taking note of the observations made in W.P.No.11485/2020, the estimate made in Form SVLDRS-2 and 3 are set aside. The first respondent to re-work the statement in SVLDRS-3 after arriving at a conclusion regarding the deposit over and above the amount of ₹ 20,27,249/- that has already been given credit as per the earlier SVLDRS-2 form, which is now set aside. Insofar as other deposits are concerned, the respondents to verify after taking note of the submissions at Annexure-'E' to the petition and affording an opportunity of personal hearing for the purpose of clarification by the petitioner and then arrive at a fresh statement in SVLDRS-3. Petition disposed off.

Summary

Issues:
Estimation in Form SVLDRS-2 and statement under Section 127 in Form SVLDRS-3 challenged. Direction sought for acceptance of declaration in Form SVLDRS-1.

Analysis:

1. Estimation and Quashing of Statements:
The petitioner sought to quash the estimation in Form SVLDRS-2 and the statement under Section 127 in Form SVLDRS-3 issued by the respondent. The petitioner claimed to have made a declaration seeking adjustment of a pre-deposit amount, which was contested by the respondent. The respondent's estimate for adjudication was significantly lower than the pre-deposit claimed by the petitioner, leading to a dispute over the amount. The petitioner provided explanations, submitted written submissions, and clarified discrepancies to support their claim for a higher pre-deposit amount.

2. Reconsideration and Verification:
The court noted a previous order related to the adjudication of pre-deposit and emphasized the need for reconsideration by the respondent authorities regarding the deposits not appropriated in the estimation. The court set aside the estimates in Forms SVLDRS-2 and 3, directing the authorities to re-work the statement in SVLDRS-3 after verifying the submissions made by the petitioner. The authorities were instructed to conduct a fresh assessment, consider the petitioner's explanations, and provide an opportunity for clarification through a personal hearing. The court highlighted the importance of verifying the claims in line with the scheme's objectives and lawful provisions.

3. Appropriation and Discharge Certificate:
The authorities were instructed to consider the claim for appropriation above the specified amount, taking into account objections raised by the respondent. However, they were reminded to ensure that the verification process aligns with the scheme's principles and lawful claims. Upon determining the extent of appropriation, if accepting the petitioner's claim, the authorities were directed to issue a discharge certificate in accordance with SVLDRS-4.

In conclusion, the court set aside the earlier estimates, directed a fresh assessment, emphasized the importance of verifying claims in line with the scheme's objectives, and instructed the authorities to issue a discharge certificate upon accepting the appropriation claim.