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2023 (10) TMI 232 - HC - Service TaxValidity of SCN - Vague SCN or not - Non-issuance of Form SVLDRS-3 - failure to pay the arrears under the scheme - HELD THAT - The impugned Show Cause Notice cannot be challenged merely on the ground that it has not specified the period. The petitioner is aware of the amount of tax that was not paid by the petitioner. The petitioner has been issued with the letter dated 17.12.2018. That apart the petitioner has admitted the tax liability under the SVLDRS Scheme 2019, but has failed to pay the amount. There is no merits in the present Writ Petition and the Writ Petition is liable to be dismissed - Petition dismissed.
Issues involved: Challenge to show cause notice for service tax demand, validity of show cause notice, applicability of SVLDRS, delay in adjudication of show cause notice, tax liability on reverse charge basis.
Validity of Show Cause Notice: The petitioner challenged the show cause notice seeking to demand Service Tax allegedly payable for the period between June 2013-2014 to 2016-2017. The petitioner argued that the notice was vague and not in accordance with the guidelines issued by the Board regarding the issuance of such notices. The petitioner also contended that the notice did not specify the period, but it was acknowledged that the petitioner was aware of the unpaid tax amount and had admitted the tax liability under the SVLDRS Scheme. Applicability of SVLDRS: The petitioner had attempted to resolve the dispute under the Sabka Vishwas Legacy Dispute Resolution Scheme (SVLDRS) by filing SVLDRS Form-1 under the "Arrears Category" for a specific sum. The Department accepted the declaration and directed the petitioner to pay the admitted amount. However, since the petitioner failed to make the payment, the Department did not issue Form SVLDRS-3 under the Scheme, leading to the issuance of the impugned notice. Delay in Adjudication: The petitioner argued that Section 75(4)(b) of the Finance Act, 1994 mandated completion of adjudication within one year from the date of issuance of the Show Cause Notice. As the notice in question was dated 25.04.2022 and remained unadjudicated until the filing of the Writ Petition, the petitioner sought to have it quashed on this ground. Tax Liability on Reverse Charge Basis: The issue of tax liability on a reverse charge basis had been previously decided by the Tribunal in a specific case. Despite this precedent, the present Show Cause Notice was issued, leading to further contention by the petitioner regarding the validity of the notice. Conclusion: After reviewing the arguments and documents, the court found no merit in the Writ Petition and dismissed it. The court noted that the petitioner was aware of the tax amount due, as evidenced by correspondence and admission under the SVLDRS Scheme. Consequently, the Writ Petition was dismissed, and the connected Miscellaneous Petition was closed without costs.
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