2024 (7) TMI 71 - HC - Service Tax

Recovery of excess availed CENVAT Credit - declaration filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 - HELD THAT - Revenue despite specific denial in the affidavit-in-rejoinder filed through Vinay Nadkarni which was affirmed on 11th February 2021 and this Court s direction on 1st March 2021, has chosen not to file any document to substantiate its averment in the affidavit-in-reply about automatic message and email being sent through system. Since more than three years have passed and Respondents have chosen not to file any further documents, we will have no option but to proceed on the assumption that no such automatic intimation through system was given to Petitioner. More so, in view of the admission in the affidavit-in-reply that there was a technical glitch which, after continuous follow up with CBEC help desk, came to be resolved only in April 2020. It is Petitioner s case that due to Covid lock down which was announced by Government of India on or about 23rd March 2020, Petitioner s staff were also not reporting to work and it was not possible to verify the portal. Petition disposed off.

Summary

Issues:
1. Declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS).
2. Alleged excess Cenvat Credit and show cause notice.
3. Filing of declaration under SVLDRS-1 and technical glitches.
4. Issuance of SVLDRS Form 3 and communication regarding the same.
5. Resolution of the case and directions given by the court.

Analysis:

1. The petitioner filed a declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) to resolve pending litigations under the previous indirect tax regime. The petitioner availed the scheme due to a show cause notice alleging excess Cenvat Credit.

2. The petitioner declared an amount of tax due for the period 2011 and 2012 under SVLDRS-1. Despite technical glitches and delays in resolving them, the petitioner's application was admitted, and it was confirmed that the petitioner was eligible for the SVLDRS benefits.

3. The Revenue claimed to have issued SVLDRS Form 3 to the petitioner, requiring payment within 30 days. However, the petitioner denied receiving such a form and highlighted the lack of evidence regarding automatic intimation through the system. The petitioner faced difficulties due to the Covid lockdown, affecting portal verification.

4. The court directed the petitioner to pay the amount mentioned in the allegedly issued Form-3 within 30 days and pay a rounded figure of Rs. 10 lakhs due to the delay. The respondent was instructed to open the portal promptly and issue SVLDRS-4 upon payment by the petitioner.

5. The judgment concluded with specific directions for both parties to resolve the matter effectively and efficiently, ensuring compliance with the SVLDRS scheme and addressing the issues raised by the petitioner regarding communication and technical glitches.