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TMI Blog2021 (2) TMI 808X X X X Extracts X X X X X X X X Extracts X X X X ..... mers. Being a service provider, it was registered as such under the Finance Act, 1994. 4. Respondent No. 3 initiated an enquiry against the petitioner for alleged short payment of service tax for the period from April 2012 to June 2017. It is submitted that in the course of the enquiry, statement of the director of the petitioner Mr. Surajpal Singh was recorded before the respondents on 09.04.2019 wherein he admitted service tax liability of the petitioner to the extent of Rs. 40 to Rs. 45 lakhs (approximately) for the aforesaid period. 5. When the scheme was introduced by the Finance (No. 2) Act, 2019, Petitioner submitted declaration thereunder under the category of "investigation, enquiry or audit" with further sub-categorisation of "investigation by commissionerate". In the declaration, petitioner disclosed the quantum of service tax liability at Rs. 43,37,865.00 further stating that it had made pre-deposit of Rs. 18,26,253.00. 6. However, by order dated 02.01.2020, the said declaration of the petitioner was rejected on the ground of ineligibility with the remark that the amount of service tax liability of the petitioner was not quantified before 30.06.2019 which is the cuto ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner for the related period was not quantified on or before 30th June, 2019 is no longer res-integra. 13. In Thought Blurb Vs. Union of India, 2020-TIOL-1813-HC-MUM-ST, this court faced with a similar issue referred to the provisions of the Finance (No.2) Act, 2019 and to the circular dated 27th August, 2019 of the Central Board of Indirect Taxes and Customs (briefly "the Board" hereinafter) whereafter it was held as under :- "47. Reverting back to the circular dated 27th August, 2019 of the Board, it is seen that certain clarifications were issued on various issues in the context of the scheme and the rules made thereunder. As per paragraph 10(g) of the said circular, the following issue was clarified in the context of the various provisions of the Finance (No.2) Act 2019 and the Rules made thereunder :- 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 d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on and the duty amount was pending for quantification would not be justified. 28. This position has also been explained by the department itself in the form of frequently asked questions (FAQs). Question Nos.3 and 45 and the answers provided thereto are relevant and those are reproduced hereunder :- "Q3. If an enquiry or investigation or audit has started but the tax dues have not been quantified whether the person is eligible to opt for the Scheme? Ans. No. If an audit, enquiry or investigation has started, and the amount of duty/duty payable has not been quantified on or before 30th June, 2019, the person shall not be eligible to opt for the Scheme under the enquiry or investigation or audit category. 'Quantified' means a written communication of the amount of duty payable under the indirect tax enactment [Section 121(r)]. 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 commun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove category is a written communication which will mean a written communication of the amount of duty payable including a letter intimating duty demand or duty liability admitted by the person concerned during inquiry, investigation or audit. For eligibility under the scheme, the quantification need not be on completion of investigation by issuing show-cause notice or the amount that may be determined upon adjudication. 17. In so far the present case is concerned, we find that Mr. Surajpal Singh, director of the petitioner had made a statement before Mr. D.B. Shetty, Superintendent (Prev.) CGST & C.Ex., Plaghar Commissionerate on 09.04.2019. The statement was recorded under the provisions of sections 70 and 174 of the Central Goods and Services Tax Act, 2017 read with section 14 of the Central Excise Act, 1944 and section 83 of the Finance Act, 1994. Question No. 7 put to the director by the Superintendent was as to what was the service tax liability of the petitioner for the period under consideration and when petitioner was going to discharge the said liability. In response, the director stated that though he did not have the exact figure of liabilities at that point of time but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax dues admitted by the person concerned prior to 30.06.2019 and subsequently quantified by the departmental authorities would not be material to determine eligibility in terms of the scheme under the category of inquiry, investigation or audit. What is relevant is admission of tax dues or duty liability by the declarant before the cut off date. Of course the figure or quantum admitted must have some resemblance to the actual dues. In our view, petitioner had fulfilled the said requirement and therefore he was eligible to make the declaration in terms of the scheme under the aforesaid category. Rejection of his declaration therefore on the ground of ineligibility is not justified. 19. That apart, in Thought Blurb (supra) we have held that when there is a provision for granting personal hearing in a case where the declarant disputes the estimated amount, it would be in complete defiance of logic and contrary to the very object of the scheme to reject a declaration on the ground of being ineligible without giving a chance to the declarant to explain as to why its declaration should be accepted and relief under the scheme be extended to him. It was held as under :- "51. We have al ..... 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