9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (3) TMI 240 - HC - Service TaxSVLDRS - Jurisdiction of adjudicating authority/Central Excise Officer - whether it is open to the adjudicating authority i.e., Central Excise Officer to proceed to adjudicate for the period and the subject in respect of which a Discharge Certificate has been issued in Form No.SVLDRS- 4 under the Sabka Viswas (Legacy Dispute Resolution) Scheme Rules, 2019 - impugned order proceeds on the basis that the Discharge Certificate is obtained on the basis of false particulars furnished by the Declarant inasmuch as an investigation was initiated on 18.06.2019 when a notice was issued on 18.06.2019. HELD THAT - Once the Discharge Certificate is issued by the Designated Committee it is not open to proceed with adjudication. The authority / power to revoke or cancel the Discharge Certificate on the premise that the material particulars furnished in the Discharge Certificate is false, lies with the exclusive jurisdiction of the Designated Committee - To assume Adjudicating Authority / Central Excise Officers to have the power to revoke or cancel Discharge Certificate issued by the Designated Committee which may comprise of officers superior in rank to that of the Central Excise Officers carrying out adjudication would result in distortion of Administrative / Institutional Hierarchy. In the absence of the Discharge certificate being revoked / cancelled by the Designated Committee, adjudication by the Central Excise officers could result in plurality of orders on the same subject conflicting with each other, which ought to be avoided. The impugned order is set aside and the writ petition is disposed of.
Issues Involved:
1. Jurisdiction of the adjudicating authority to proceed with adjudication when a Discharge Certificate under the Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) has been issued. 2. Validity of the Discharge Certificate issued under SVLDRS. 3. Authority to revoke or cancel the Discharge Certificate. 4. Potential conflict in administrative hierarchy and plurality of orders. Summary: 1. Jurisdiction of the Adjudicating Authority: The petitioner challenged the adjudication order for the period April 2014 to June 2017, arguing that since a Discharge Certificate in Form SVLDRS-4 was issued under the SVLDRS Scheme, the adjudicating authority lacked jurisdiction to proceed without revoking or canceling the Discharge Certificate. 2. Validity of the Discharge Certificate: The petitioner contended that the Discharge Certificate issued on 12.07.2020 under the SVLDRS Scheme was valid and conclusive for the period in question. The respondent argued that the petitioner was ineligible to file a declaration under the scheme due to an ongoing investigation as of 30.06.2019, rendering the Discharge Certificate nonest. 3. Authority to Revoke or Cancel the Discharge Certificate: The court examined whether the adjudicating authority had the power to revoke or cancel the Discharge Certificate. It concluded that such authority lies exclusively with the Designated Committee under the SVLDRS Scheme, not with the adjudicating authority. The Designated Committee is responsible for verifying the correctness of the declaration and issuing the Discharge Certificate, which is declared conclusive under Section 129(1) of the Scheme. 4. Potential Conflict in Administrative Hierarchy and Plurality of Orders: The court highlighted that allowing the adjudicating authority to revoke or cancel the Discharge Certificate could lead to a distortion of administrative hierarchy, as the Designated Committee may comprise officers superior in rank to the adjudicating authority. Additionally, this could result in conflicting orders on the same subject, which is undesirable. Conclusion: The court set aside the impugned adjudication order, stating that: a) Once a Discharge Certificate is issued by the Designated Committee, it is not open to proceed with adjudication. b) The authority to revoke or cancel the Discharge Certificate lies exclusively with the Designated Committee. c) Assuming adjudicating authorities have the power to revoke or cancel the Discharge Certificate would distort administrative hierarchy. d) In the absence of revocation or cancellation by the Designated Committee, adjudication by Central Excise officers could result in conflicting orders. The writ petition was disposed of, and the impugned order was set aside with no costs.
|
