2024 (4) TMI 863 - AT - Service Tax

Resolution of dispute under Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019 - Seeking withdrawal of appeal - HELD THAT - It is found that no order has been passed by the Appellate Authority on the merits of the case and the appeal has been dismissed as withdrawn for the reasons that Applicant had opted for SVLDRS Scheme. As the issue was not finally settled under the said scheme and no SVLDRS-4 issued the matter has to be considered on the merits and final decision taken. Undisputedly the matter was not settled under the SVLDRS Scheme and as the matter has not been settled under the said scheme right to appeal which is enshrined in the Finance Act 1994 cannot be denied. Right of appeal is a statutory right and could not have been denied/ modified. The fact about non settlement of the case under SVLDRS was thus brought to the notice of the Commissioner (Appeal) before the dismissal of appeal. The Right of Appellant to get a decision on merits thus could not have been denied to them just for the reason that they had filed a declaration under SVLDRS which was not accepted by the revenue authorities and discharge certificate issued - As the Appellate Authority has not considered the issue on the merits and dismissed the appeal as withdrawn on the basis of submission that Appellant proceeded for settlement of the case under SVLDRS Scheme. The matter needs to be remanded back to the Appellate Authority for appropriate decision after consideration of the issues on merit. Appeal is allowed and the matter remanded back to the Commissioner (Appeals) for decision on merits.

Summary

Issues involved: Appeal against Order-in-Appeal under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019; Early Hearing Application for consideration; Appeal dismissed as withdrawn u/s 127(6) of SVLDRS, 2019.

Appeal against Order-in-Appeal under SVLDRS, 2019:
The appeal was filed against the Order-in-Appeal dated 27.11.2020, which dismissed the appeal as withdrawn under Section 127(6) of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The Appellant had filed a declaration under the said scheme, which led to the appeal being deemed withdrawn. The Commissioner (Appeals) dismissed the appeal on this basis, stating that the appeal is liable to be dismissed as withdrawn once a declaration is filed under the SVLDRS, 2019.

Early Hearing Application:
The Applicant/Appellant filed an Early Hearing Application, citing grounds that due to a difference in liability determined by the department, they could not deposit the amount within the given time under the SVLDRS, 2019. The matter was taken up for consideration simultaneously with the appeal. The Early Hearing Application was allowed as no order had been passed by the Appellate Authority on the merits of the case, and the appeal was dismissed as withdrawn based on the SVLDRS declaration.

Appeal Remanded for Decision on Merits:
The Tribunal found that as the matter was not settled under the SVLDRS, 2019, the right to appeal under the Finance Act, 1994 could not be denied. The Appellate Authority had not considered the merits of the case and dismissed the appeal based on the SVLDRS declaration. The Tribunal remanded the matter back to the Commissioner (Appeals) for a decision on merits, emphasizing that the Appellant's right to a decision on merits should not have been denied solely based on the SVLDRS declaration.