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TMI Blog2020 (1) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... cessarily the amount crystallized following adjudication - In so far the letter dated 06.09.2019 is concerned, the same was only in reiteration of the admission made by the proprietor on 28.06.2019. Further, such an admission is to be examined not for the purpose of investigation into alleged tax evasion but for the purpose of eligibility under the scheme. Respondents were not justified in rejecting the declaration of the petitioner under the scheme on the ground that quantification of tax dues was not made final on or before 30.06.2019 - Matter is remanded back to respondent Nos.2 and 3 to consider the declaration of the petitioner as a valid declaration under the category of investigation, enquiry or audit in terms of the scheme and after giving due opportunity of hearing grant the consequential relief(s) to the petitioner - Petition allowed by way of remand. - WRIT PETITION (L) NO.3561 OF 2020 - - - Dated:- 7-1-2021 - UJJAL BHUYAN ABHAY AHUJA, JJ. Mr. Avinash Poddar a/w Ms. Deepali Kamble, for the Petitioner. Mr. Sham Walve a/w Mr. Ram Ochani, for the Respondents. Judgment and Order (Per Ujjal Bhuyan, J) : Heard Mr. Avinash Poddar, learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 2017-18 (upto June, 2017) as quantified in the statement of the proprietor dated 28.06.2019. 9. On 21.11.2019 petitioner submitted declaration in terms of the said scheme under the category of investigation, enquiry or audit and within the sub-category of investigation by DGGI. In the said declaration petitioner mentioned the duty payable at ₹ 1,25,54,725.00. Petitioner was called for personal hearing on 17.12.2019. Though petitioner sought for another date, it was not granted. Thereafter petitioner requested the authority to accept his declaration. On 12.02.2020 petitioner received a letter from respondent No.2 intimating that its declaration was rejected on the ground that quantification of the tax dues was not made final by 30.06.2019 which was the cut off date. 10. Aggrieved, present Writ Petition has been filed. 11. Respondents have filed a common affidavit. Stand taken in the affidavit is that under section 124(1)(d) of the Finance (No.2) Act, 2019 the quantum of tax due had to be quantified on or before 30.06.2019 to be eligible under the scheme where the tax dues are linked to enquiry, investigation or audit. Otherwise under section 125(1)(e) such a person ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the Rules made thereunder :- (g) Cases under an enquiry, investigation or audit where the duty demand has been quantified on or before the 30th day of June, 2019 are 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. 48. Thus as per the above clarification, written communication in terms of section 121(r) will include a letter intimating duty demand or duty liability admitted by the person during enquiry, investigation or audit etc. This has been also explained in the form of frequently asked questions (FAQs) prepared by the department on 24th December, 2019. 49. Reverting back to the facts of the present case, on the one hand there is a letter of respondent No.3 to the petitioner quantifying the service tax liability for the period 1st April, 2016 to 31st March, 2017 at ₹ 47,44,937.00 which quantification is before the cut of date of 30th June, 2019 and on the othe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n communication of the amount of duty payable under the indirect tax enactment [Section 121(g)]. 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. [Para 10(g) of Circular No 1071/4/2019-CX dated 27th August, 2019]. * * * * Q45 . With respect to cases under enquiry, investigation or audit what is meant by written communication quantifying demand ? Ans . Written communication will include a letter intimating duty/tax demand or duty/tax liability admitted by the person during enquiry, investigation or audit or audit report etc. 16. The above position has been reiterated in Saksham Facility Services Pvt Ltd Vs. Union of India, 2020-TIOL-2108-HC-MUM-ST. This Court faced with an identical issue referred to clause (g) of paragraph 10 of the Board s circular dated 27.08.2019 and held as follows :- 22.3. Clause (g) of paragraph 10 makes it abundantly clear that cases under an enquiry, investigation or audit where the duty demand had been quantified on or before 30.06.2019 would be eligible under the scheme. The word quantified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uantified on the basis of RA bills of taxable work orders submitted by you and as discussed and admitted hereinabove, the total Service Tax liability comes to the tune of ₹ 1,26,54,725/- including all cesses for the period from 2014-15 to 2017-18 upto 30.06.2017. Please, go through the said work-sheet in detail and state whether you are completely agreed with the said Service Tax liability of ₹ 1,26,54,725/-. Please also state by what time you are paying the said liability along with applicable amount of interest. Ans :- Yes, I have minutely gone through the said work-sheet and found it correct as per my records/documents. Further, I am completely agreed with the amount of Service Tax liability of ₹ 1,26,54,725/- for the period from 2014-15 to 2017-18 upto 30.06.2017 and in admittance of the same I confirm to pay the same along with applicable amount of interest. Further, with regard to time of payment of the said Service Tax liability, I have to state and request that I need some more time since we have some financial problem but as and when we get funds we shall pay the same. 18. From the above it is quite evident that there was a clear admission on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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