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TMI Blog2020 (9) TMI 1069X X X X Extracts X X X X X X X X Extracts X X X X ..... to correctly discharge their tax liability to pay the tax dues. The Scheme is incorporated in chapter V of the Finance Act, 2019. Paragraph 10(b) of Ext.P19 circular dated 27.08.2019 issued by the Government of India, Central Board of Taxes and Customs, would show that the Scheme is not available to an applicant who has been issued a show cause notice relating to refund or erroneous refund. It has potential to lead to an interpretation that such persons will not be able to opt for the Scheme for any other dispute as well, since the restriction is on the person in place of the case - As per the Scheme, as clarified in Ext.P19 circular, if a person has been issued a show cause notice and at the same time he also has other outstanding disputes which are covered under the Scheme, then he will be eligible to file declaration for other cases. Therefore, it is clear that any investigation pertaining to the period from 2014 to 2016 by the authorities should not affect the declarations made by the petitioner in respect of the period from April, 2016 onwards. The contention of the respondents is that the investigation pertains to the period 2016 17 also and the respondents are yet to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs. According to the petitioner, the returns filed by the petitioner were never disputed and the petitioner admitted the liability for the respective return period. In fact, there was a pending tax liability of ₹71,92,116/- at the time of filing Ext.P1. The petitioner was clearing the said liability as and when cash flow improved. The entire balance tax was paid over a period of time. 4. Now the third respondent has launched Sabka Vikas (Legacy Dispute Resolution) Scheme 2019 (SVLDR Scheme). The Scheme is for settling tax arrears of the assessees. The Scheme provides for different types of tax reliefs. Various categories of declarants under SVLDR scheme for the purpose of tax reliefs, are litigation , arrears of tax , enquiry and investigation and voluntary disclosure . In the case of voluntary disclosure a person who has not filed any return nor paid any taxes can voluntarily disclose his tax liability to the department. Arrears of tax category covers those cases where return is filed, but tax not paid. The Scheme provides for substantial tax reliefs including 100% waiver of penalty and interest. 5. The petitioner therefore filed Exts.P15 to P17 declarations ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner and the learned standing counsel appearing for the respondents. 10. The SVLDR Scheme has been introduced by the Government of India as an endeavour to unload the baggage relating to the legacy taxes that have been subsumed under GST and allow business to make a new beginning and focus on GST. Dispute Resolution and Amnesty are the two components of the SVLDR Scheme. The Dispute Resolution component is aimed at liquidating the legacy cases locked up in litigation at various forums, whereas the Amnesty component gives an opportunity to those who have failed to correctly discharge their tax liability to pay the tax dues. The Scheme is incorporated in chapter V of the Finance Act, 2019. 11. Section 125 states as to who are all the persons eligible to make a declaration under the Scheme. Section 125 Reads as follows: 125.(I) All persons shall be eligible to make a declaration under this Scheme except the following, namely:- (a) who have filed an appeal before the appellate forum and such appeal has been heard finally on or before the 30th day of June, 2019; (b) who have been convicted for any offence punishable under any provision of the indirect tax enactment fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e eligible under the Scheme. Section 2(r) defines quantified as a written communication of the amount of duty payable under the indirect tax enactment. It is clarified that such written communication will include a letter intimating duty demand; or duty liability admitted by the person during enquiry, investigation or audit; or audit report etc. The term quantified would therefore include duty liability admitted by the person during enquiry, investigation or audit or audit report. 14. The legacy dispute sought to be resolved by the petitioner relates to three periods namely April-September 2016, October'16-March 17 and April-June 2017. The petitioner had filed returns for these periods on 21.06.2017, 28.09.2017 and 31.10.2017 respectively, as per Exts.P1 to P3. It seems that tax was in arrears for periods anterior thereto also. The respondents initiated verification of accounts for the period from 2012-13, only on 07.09.2017, after the petitioner filed Ext.P1 return. Exhibit P18 letter dated 16.12.2019 by which the petitioner s declarations under SVLDR Scheme were rejected also states that the rejection is due to the fact that investigation against the petitioner- Co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions within one year of issue of a Discharge Certificate, if subsequently any material particular is found to be false. The interest of the revenue is amply protected under the Scheme. In such circumstances, the respondents are duty-bound to take a liberal approach in entertaining applications/ declarations under the Scheme, 2019. 19. For all the above reasons, the respondents are directed to consider Exts. P15 to P17 declarations made by the petitioner under the SVLDR scheme 2019. Ext.P18 letter dated 16.12. 2019 of the Joint Commissioner is set aside. The respondents are directed to place the afore declarations made by the petitioner before the Designated Committee. The Designated Committee is directed to decide the petitioner s applications/declarations after giving an opportunity of hearing to the petitioner. 20. If pursuant to the directions contained in this judgement, the respondents issue Discharge Certificates to the petitioner, then in that event, it is made clear that the respondents will be at liberty to reopen the declarations made by the petitioner within one year of issue of such Discharge Certificates, if subsequently any material particular provided by the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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