2024 (2) TMI 308 - HC - Service Tax

Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - amount pre-deposited by the petitioner which was appropriated by the Assistant Commissioner is to be set off against the tax amount confirmed by the Assistant Commissioner and affirmed by the Commissioner of Appeals or not - HELD THAT - The amount that was pre-deposited by the petitioner is available for being set off in terms of Section 124(2) of Sabka Vishwas - (Legacy Dispute Resolution) Scheme, 2019. The petitioner is entitled to deduct Rs. 15,35,735/- being the amount pre-deposited by the petitioner during the course of investigation in terms of Section 124(2) of Sabka Vishwas - (Legacy Dispute Resolution) Scheme, 2019 from the aforesaid sum of Rs. 18,99,158.40 Thus, the petitioner is required to pay only a sum of Rs. 3,63,419/- (Rs. 18,99,154.40 Rs. 15,35,735/-) and not Rs. 12,75,256/- - amounts quantified as payable both by the petitioner in Form SVLDRS-1 and by the respondent vide impugned Form SVLDRS- 3 dated 19.11.2019 are incorrect - Thus, the amount quantified by the petitioner should have been Rs. 3,63,419/- and not Rs. 3,53,803/- in Form SVLDRS-1. Therefore, Rs. 12,75,258/- quantified by the respondent in the impugned SVLDRS-3 is also incorrect. The petitioner shall pay a sum of Rs. 3,63,419/- as quantified above within 30 days of receipt of this order together with interest at 12% from the 30th day of expiry of Form SVLDRS-2 - In case, the petitioner has already paid an amount of Rs. 3,53,803/-, the petitioner shall pay only the differential amount of Rs. 9,616/- - Petition disposed off.

Summary

Issues involved:
The judgment involves the consideration of whether the pre-deposited amount by the petitioner should be set off against the tax amount confirmed by the Assistant Commissioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Summary:

Issue 1 - Pre-deposited amount deduction:
The petitioner filed a Writ Petition against the order in SVLDR-3, seeking consideration for the deduction of the pre-deposited amount prior to filing the application under the SVLDRS Scheme, 2019. The petitioner quantified the tax payable as Rs. 3,53,803, while the respondent determined it as Rs. 12,75,256. The key question was whether the pre-deposited amount of Rs. 15,35,755 should be set off against the confirmed tax amount of Rs. 47,23,896.

Issue 2 - Relief under SVLDR Scheme:
The petitioner referred to relevant provisions of the Sabka Vishwas Scheme, arguing for relief based on the amount in arrears and the relief percentages specified under Section 124(1)(c) of the Finance Act, 2019. The petitioner claimed entitlement to a 60% relief on the confirmed tax amount, leading to a required payment of Rs. 18,99,158.40, subject to deduction of the pre-deposited amount.

Issue 3 - Correct quantification of payable amount:
The Court found discrepancies in the amounts quantified by both the petitioner and the respondent in Forms SVLDRS-1 and SVLDRS-3, respectively. The correct payable amount was determined to be Rs. 3,63,419 after deducting the pre-deposited amount, rather than the incorrect figures initially presented.

Conclusion:
The Court ordered the petitioner to pay the corrected amount within 30 days, along with interest, and settled the case in accordance with the provisions of the Finance Act, 2019 and the Sabka Vishwas Scheme, 2019. The writ petition was disposed of with observations and no costs, with connected miscellaneous petitions closed.