2020 (10) TMI 1033 - HC - Service Tax

Rejection of SVLDRS-1 Form submitted by the petitioner - HELD THAT - This writ petition stands disposed of by requiring the petitioner to submit an application before the respondent authorities for the correction to be made in the information provided in the Form SVLDRS-1 as regards the disclosure of the dues from them and upon such application being made, the respondent authorities would pass a reasoned speaking order thereon. The requirement of submitting application be made within a period of 15 days from obtaining the certified copy of the order and upon receipt of the application, the respondent authorities shall pass an order on the same within a period of 2 months from the date of receipt of the application. Petition disposed off.

Summary

Issues:
Challenge to rejection of SVLDRS-1 Form under Sabka Vishwas Scheme.

Analysis:
The petitioner challenged the rejection of the SVLDRS-1 Form by the respondent No. 3. The petitioner had initially faced a Show Cause Notice demanding a substantial amount, against which appeals were made, and pre-deposits were submitted during the appeal process. Subsequently, the Sabka Vishwas Scheme, aimed at resolving legacy disputes, was introduced by the Central Government. The Scheme provided a mechanism for resolving cases related to old enactments like Central Excise and Service Tax. The petitioner, while submitting the SVLDRS-1 Form, inadvertently made an error in declaring the pre-deposit amount. The respondent authorities rejected the petitioner's claim under the Scheme due to discrepancies in the pre-deposit details provided. The petitioner sought permission to correct the error and requested the authorities to reconsider the application under the SVLDRS Scheme.

The Court noted that the error made by the petitioner was unintentional and did not result in any loss to the Government revenue. Both the petitioner's counsel and the Assistant Solicitor General representing the respondents agreed that the petitioner should be allowed to rectify the mistake in the SVLDRS-1 Form. Referring to a similar order by a Coordinate Bench, the Court directed the petitioner to submit an application for correction to the respondent authorities. The authorities were instructed to pass a reasoned order on the corrected information within two months of receiving the application. The Court clarified that the petitioner's entitlement to benefits under other provisions should not be limited by the previous observations. The order set aside the rejection of the SVLDRS-1 Form and directed the authorities to process the corrected form within the specified timeline.

In conclusion, the writ petition was disposed of without any costs, with the order dated 28.12.2019 being set aside. The respondents were directed to review the corrected declaration/application form submitted by the petitioner within two months from the receipt of the Court's order. The judgment emphasized the importance of allowing the petitioner to rectify the inadvertent error and receive due consideration under the Sabka Vishwas Scheme.