9911796707
TMI Blog2021 (8) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... customers' premises for the said period, as follows: Period Month of Availment Cenvat credit availed (including cesses) Factory to Customer's place Depot/Consignment Agent Premises to Customer's place C&F Agency services August 14 to April 15 May 2017 8,88,25,992 3,15,78,763 1,36,38,620 November 15 to June 17 Nov 16 to June 17 3,41,05,942 53,07,576 - 12,29,31,934 3,68,86,339 1,36,38,620 TOTAL 17,34,56,893/- 3. Respondent - Commissioner of Central Tax : GST Commissionerate, Tirupati, issued a show-cause notice, dated 04.06.2019, proposing recovery of irregularly availed Cenvat Credit of Service Tax of Rs. 17,34,56,893/- along with interest and penalty on the ground that petitioner is not entitled to avail Cenvat credit of service tax paid on GTA and C&F Agency Services for outward transportation of goods. The Goods and Services Tax Act, 2017 (hereinafter referred to as 'the GST Act') was introduced with effect from 01.07.2017. In order to resolve and settle pending cases under various laws including Central Excise Act, which were subsumed in the GST regime, the Government floated 'Sabka Vishwas (Legacy Dispute Re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rupati, has issued the impugned letter, dated 24.11.2020, refusing to issue a discharge certificate on the ground that the petitioner has illegally sought transitional credit of the disputed Cenvat credit under the GST Act. As a consequence, the petitioner in Writ Petition No.5 of 2021 challenged the impugned letter, dated 24.11.2020, and prayed for a direction upon the respondents to issue discharge certificate in form SVLDRS-4 in terms of Section 127(8) of the Finance Act. In the meantime, the respondent - Principal Commissioner of Central Tax GST Commissionerate, Tirupati, proceeded with adjudication of the show-cause notice, dated 04.06.2019, with regard to the irregularly availed Cenvat credit of service tax paid on GTA and C&F Agencies which was the subject matter of declaration in SVLDRS, as aforesaid, and passed the order-in-original, dated 12.10.2020, which came to be challenged in Writ Petition No.3 of 2021. Respondent - Additional Commissioner (Audit), Visakhapatnam, also issued a show-cause notice, dated 10.11.2020, with regard to irregular availment of transition credit of Rs. 17,46,55,825/- under Section 140 of the Central Goods and Services Tax Act, 2017 including th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Scheme and made a declaration under Section 125 of the Finance Act with regard to the 'tax dues' and also paid the estimated amount after availing relief under the Scheme. Having done so, the petitioner was ineligible to seek transitional credit on the irregular Cenvat credit under Section 140 of the GST Act. 8. Chapter-V of the Finance Act of 2019 provided a scheme for settlement of disputes under various laws including the Central Excise Act and the Rules framed thereunder, which were subsumed under the GST Act. The purpose of framing the Scheme was to settle all outstanding disputes and avoid complications of carrying over the disputes into the GST regime. A person who had 'tax dues' as defined under Section 123 of the Finance Act was entitled to make a declaration in electronic form under Section 125 stating the amount payable by him after availing relief under the Scheme. In the present case, a show-cause notice had been issued upon the petitioner for availing of irregular Cenvat credit on GTA and C&F Agency services to the tune of Rs. 17,34,56,893/- for the period of April, 2014 to June, 2017, which fell within the ambit of 'tax dues' as aforesaid and the petitioner availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 inter alia provides that the discharge certificate shall be presumed to be void if the same was procured on the basis of any material particular furnished by the declarant which is subsequently found to be false. Immunity available to the declarant under the Scheme is therefore restricted to any future demand of tax, penalty, or interest or prosecution on the subject matter to which the declaration relates to or reopening of other proceedings under the Indirect tax enactment with regard to self same subject matter. Availing the Scheme, however, does not entitle the declarant to a stamp of legitimacy vis-à-vis the tax dues i.e., irregular availing of Cenvat credit under the Central Excise Act as in the present cases. Thus, we are of the view once the declarant has paid the estimated amount as per the statement under the form of SVLDRS-3 within the stipulated time, he has the immunity from any further claim of tax, interest or penalty on the self same subject matter i.e., availing irregular Cenvat credit which is the substratum of the show-cause notice issued under the Central Excise Act. However, it is debatable whether availing the Scheme renders the claim of Cenvat credit ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
