2023 (8) TMI 1151 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - Adjustment of amount paid in excess of predeposit - HELD THAT - Under Section 124(2) of the SVLDRS, 2019 makes it clear that any amount paid as pre-deposit at any stage of appellate proceedings under the indirect tax enactment or as deposit during enquiry, investigation or audit, shall be deducted when issuing the statement indicating the amount payable by the declarant. Thus, the petitioner is entitled for adjustment of the entire amount of Rs. 5,53,937/- Rs. 2,37,403 Rs. 3,16,535/- that was pre-deposited at the time of filing of appeal before Customs, Excise and Service Tax Appellate Tribunal (CESTAT). This writ petition deserves to be allowed. It is accordingly allowed.

Summary

Issues involved: Challenge to impugned communication u/s Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019; Adjustment of pre-deposit amount under SVLDRS Scheme.

Challenge to impugned communication u/s Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019:
The petitioner, a service tax assessee, challenged the communication of the Designated Committee under the Sabka Vishwas Scheme, 2019. The petitioner had faced an adverse order from the Joint Commissioner of Central Excise, leading to appeals and pre-deposits. The petitioner pre-deposited amounts as required by law, including 7.5% and 10% of the disputed tax. Subsequently, the petitioner opted to settle the dispute under the SVLDRS Scheme, 2019. The Designated Committee recognized only a portion of the pre-deposited amount, leading to a dispute regarding adjustment. The petitioner sought adjustment of the excess pre-deposited amount under the Scheme, which was contested by the respondents. The Court considered the arguments and ruled in favor of the petitioner, directing the respondents to adjust the entire pre-deposit amount paid by the petitioner.

Adjustment of pre-deposit amount under SVLDRS Scheme:
The Court noted that under Section 124(2) of the SVLDRS, 2019, any amount paid as pre-deposit during appellate proceedings shall be deducted when indicating the amount payable by the declarant. The petitioner had pre-deposited a total sum, part of which was in excess. The Court held that the petitioner was entitled to adjust the entire pre-deposit amount made at the time of filing the appeal before CESTAT. Consequently, the Court allowed the writ petition, directing the respondents to adjust the entire pre-deposit amount paid by the petitioner as per the SVLDRS Scheme, without imposing any costs.