2024 (8) TMI 20 - HC - Service Tax

Rejection of the applications made under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme) - rejection on the ground that Petitioner No.1-Firm has not paid the redemption fine of Rs.25 lakhs - HELD THAT - The disqualification prescribed under Section 125 (1) (e), is not applicable to the facts of the Petitioners case therein. The Respondents are directed to accept 9 applications made by Petitioners and intimate within a period of four weeks from the date of uploading the present judgment, the amount, if any, required to be paid by Petitioner for availing the benefit of the Scheme. Petitioner would make the payment within a period of four weeks from the date of such intimation and inform the same to Respondents. Respondents would issue a final certificate in Form SVLDRS-4 within a period of four weeks from the date of such intimation of Petitioners having made the payment. Declaration made by two partners for settlement of penalty levied of Rs.1,75,000/- each and Rs.17 lakh each vide show cause notices dated 8th August 2007 and 21st February 2008 have been rejected on the ground that the declaration made by Petitioner No.1-Firm has been rejected - Since the Respondents are directed to accept the applications made by Firm for the reasons recorded above, the basis of rejection in the case of partners does not survive and, therefore, Respondents are directed to accept 4 applications made by partners. Petition disposed off.

Summary

Issues:
Challenge to rejection of applications under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.

Analysis:
1. Rejection of applications in Form SVLDRS-1 Nos.LD2712190004986 and LD2712190005312 dated 27th December 2019:
- The Firm's application was rejected for not paying the redemption fine of Rs.25 lakhs.
- The rejection was found illegal in a related petition, and the rejection was quashed. Respondents were directed to accept the application and issue Form SVLDRS-4 within four weeks.

2. Rejection of nine applications in Form SVLDRS-1 Nos.LD2712190006176, LD2712190006375, etc. dated 27th December 2019:
- These applications were rejected as no pending enquiry or investigation existed as of 30th June 2019.
- Following a judgment in a related petition, where disqualification under Section 125 (1) (e) was found inapplicable, the rejection of these applications was quashed. Respondents were directed to accept the applications and specify any required payment within four weeks.

3. Applications made by two partners in Form SVLDRS-1 Nos.LD2712190007217 and LD2712190007337:
- Partners' declarations for penalty settlement were rejected based on the Firm's rejection.
- As the Firm's applications were directed to be accepted, partners' applications were also to be accepted. Respondents were directed to specify any payment required, and partners were to make the payment within four weeks.

4. Overall Disposition:
- Writ Petition No.8399 of 2021 was disposed of accordingly, with directions to accept and process the applications as specified in the judgment for both the Firm and its partners.