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2023 (10) TMI 166 - HC - Central ExciseApplication under SVDLR rejected - Rejection of application on the ground that the issue was pending before the Settlement Commission - ineligibility in light of Section 125(1) (g) of the Finance Act (No. 2) of 2019 - HELD THAT - In the perception of the respondents, the petitioner no. 1 was held ineligible in light of Section 125(1) (g) of the Finance Act (No. 2) of 2019. The stand of the respondents is misconceived. Though the petitioners had filed application before the Settlement Commission, the said application was already decided by the Settlement Commission in the year 2002. When there are arrears emerging out of orders of the Settlement Commission, the assessee is eligible under the scheme. Therefore though no appeal or reference were pending, here was a case where the Settlement Commission had passed a Final Order on 24.05.2002. MA was also disposed of on 20.07.2004, thus no case was pending. Even reading of the communication dated 06.03.2020 under the RTI Act would reveal that the benefit of the circular particularly para 10 has been extended to others. Once it is held that the petitioner no. 1 was entitled to the benefit of the scheme, petitioner nos. 2 to 4 would automatically be held entitled to the benefit thereof. The respondents are directed to accept the declarations filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 and issue consequential statements of estimated amount payable in Form SVLDRS-3 and on payment of the estimated amount by petitioner no. 1 issue discharge certificates in Form SVLDRS-4 to the petitioner nos. 1 to 4 - petition allowed.
Issues Involved:
1. Eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. 2. Interpretation of Section 125(1)(g) of the Finance (No. 2) Act, 2019. 3. Application of Central Board of Indirect Taxes & Customs Circular dated 27.08.2019. Summary of Judgment: Eligibility under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019: The petitioners sought relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, which was denied by the Designated Committee on grounds of ineligibility due to prior settlement by the Settlement Commission. The petitioners argued that their applications were not pending before the Settlement Commission when they applied under the SVLDR Scheme. Interpretation of Section 125(1)(g) of the Finance (No. 2) Act, 2019: The respondents contended that Section 125(1)(g) of the Finance (No. 2) Act, 2019, disqualifies any person who has filed an application with the Settlement Commission from making a declaration under the scheme. The petitioners countered that their applications had already been decided by the Settlement Commission, making them eligible under the scheme. Application of Central Board of Indirect Taxes & Customs Circular dated 27.08.2019: The court noted that the Circular No. 1071/4/2019-CX.8 dated 27.08.2019 clarifies that cases where proceedings before the Settlement Commission have abated or been decided are eligible under the SVLDR Scheme. The court found that the petitioners' case fell within this clarification as their application had been decided by the Settlement Commission in 2002, and no case was pending. Analysis and Conclusion: The court held that the respondents' rejection of the petitioners' applications was misconceived. The court emphasized that the petitioners were eligible under the scheme as their case was not pending before the Settlement Commission. The court directed the respondents to accept the declarations filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and issue the necessary statements and discharge certificates. Final Order: The petition was allowed. The respondents were directed to accept the declarations filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, and issue consequential statements of estimated amount payable in Form SVLDRS-3. Upon payment of the estimated amount by petitioner no. 1, discharge certificates in Form SVLDRS-4 were to be issued to petitioner nos. 1 to 4.
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