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2024 (12) TMI 1144 - HC - Service TaxRecovery of service tax - Interpretation of Sabka Vishwas Scheme under Article 226 of the Constitution of India - amount already deposited by the petitioner during investigation - HELD THAT - It is not in dispute that the petitioner had deposited the amount of Rs. 30,36,101/- pending investigation which is also adjusted in the order-in-original passed by the respondent authority after the scheme was over while determining the tax liability under the provisions of the GST Act. Therefore, the amount of Rs. 30,36,101/- ought to have been considered as the amount paid towards the outstanding liability instead of amount of pre-deposit made by the petitioner of Rs. 4,86,851/- for preferring the appeal before the Commissioner (Appeals). There is a glaring mistake committed by the Designated Committee while computing the amount payable under SVLDRS. The petitioner was always ready and willing to deposit the amount of Rs. 30,82,811/- after considering the amount of Rs. 30,36,101/- deposited by the petitioner. Therefore, by permitting the petitioner to deposit the amount of Rs. 30,82,811/- with interest, it cannot be said that the time period for deposit under SVLDRS would be extended as the Designated Committee has committed an error in computation of the amount payable under the provisions of the SVLDRS without taking into consideration the amount already deposited during the investigation by the petitioner. The petitioner is directed to deposit amount of Rs. 30,82,811/- within a period of four weeks from today along with interest at the rate of 9% p.a. from 06.03.2020 till the date of payment - Petition allowed.
Issues:
1. Interpretation of Sabka Vishwas Scheme under Article 226 of the Constitution of India. 2. Computation of pre-deposit amount for availing benefits under SVLDRS. 3. Consideration of amount already deposited by the petitioner during investigation. 4. Extension of time period for deposit under SVLDRS due to Covid-19 pandemic. Analysis: Issue 1: Interpretation of Sabka Vishwas Scheme under Article 226 of the Constitution of India The petitioner sought relief under Article 226 for issuance of a Writ in the nature of Mandamus or any other writ to direct the respondent to accept a specific pre-deposit amount under the Sabka Vishwas Scheme. The High Court considered the petition and the controversy involved, highlighting the narrow compass of the matter. The court proceeded with the hearing with the consent of both parties. Issue 2: Computation of pre-deposit amount for availing benefits under SVLDRS The petitioner, engaged in the business of providing services, had filed declarations under the Sabka Vishwas Scheme. Discrepancies arose in the computation of the amount payable under the scheme, with the Designated Committee issuing Form SVLDRS-3 for a higher amount than the petitioner's claimed pre-deposit. The petitioner contended that the Committee failed to consider the amount already deposited, leading to an incorrect determination of the payable sum. Issue 3: Consideration of amount already deposited by the petitioner during investigation The court noted that the petitioner had indeed deposited a specific amount during the investigation, which was adjusted in the final tax liability determination. The Designated Committee's failure to account for this deposit resulted in an erroneous calculation of the payable sum under the Sabka Vishwas Scheme. The court emphasized the importance of considering the amount already paid by the petitioner towards the outstanding liability. Issue 4: Extension of time period for deposit under SVLDRS due to Covid-19 pandemic The respondent argued against extending the time period for deposit, citing previous legal precedents emphasizing adherence to scheme terms without modifications. However, the court found that allowing the petitioner to deposit the correct amount, inclusive of the previous deposit, would not amount to an impermissible extension of the time period. The court directed the petitioner to deposit the revised sum within a specified period, along with applicable interest, and ordered the respondent to issue the necessary certificate upon payment. In conclusion, the High Court granted relief to the petitioner, emphasizing the correct computation of the payable amount under the Sabka Vishwas Scheme and directing the respondent to act accordingly.
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