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TMI Blog2022 (6) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... thwith. By consent of parties, Writ Petition is heard finally. 2. The Petitioner is challenging the SVLDRS-3 issued to it on the ground that the same is issued without deducting the eligible CENVAT amount. The Petitioner claims to be a Company registered as Service provider engaged in business relating to renting of immovable properties. 3. It is the case of the Petitioner that the Petitioner was issued show cause notice dated 22.10.2012 for the period from 2007-08 to 2010-11 demanding service tax of Rs.1,34,23,438/- and CENVAT Credit claimed of Rs.10,30,002/-. The second show cause was issued to the Petitioner on 15.01.2013 for the period from 2011-12 demanding service tax of Rs.1,01,69,641/- and CENVAT Credit claimed of Rs.61,04,079/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stainable. According to the learned counsel, the rejection is contrary to the purpose of the scheme. It is submitted that the CENVAT credit are the credits provided for the tax paid while purchasing raw material. The term "verify the correctness" in section 126 of the Finance Act, 2019 and Rule 6 of the (Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 cannot be stretched to mean that the Designated Committee can embark upon an adjudication regarding the entitlement or otherwise of the declarant. The learned counsel relies upon the judgment of the Division Bench in case of M/s. Jagadish Advertising v. Designated Committee, Sabka Vishwas (Legacy Dispute Resolution) Scheme, Bangalore and Others dated 19.08.2020. 6. The learned co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the tax payer can file declaration under the Scheme. Similarly circular dated 12.12.2019 clause 2(ii) clarifies that section 124(2) provides for adjustment of any amount paid as pre-deposit at any stage of appellate proceedings or as deposit during enquiry, investigation or audit. The learned counsel also relies upon the frequently answered asked questions published under the scheme. Question no.46 and answered therein is as under: "Q-46 I have already paid duty/tax by utilising the input credit, and the matter is under dispute. Will this duty/tax already paid through input credit be adjusted against my duty/tax liability calculated under the Scheme? Ans. Yes. In such cases, duty/tax already paid through input credit shall be adjuste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ginal was passed with reference to two show cause notices 1) dated 22.10.2012 for the period 2007-08 to 2010-11 and 2) show cause notice dated 15.01.2013 for the period 2011-12. The adjudicating authority issued common order in respect of both show cause notices dated 22.12.2012. From CENVAT credit of Rs.10,30,002/- claimed, Rs.2,99,229/- was allowed and Rs.7,30,773/- was disallowed and as regards show cause notice dated 15.01.2013 out of CENVAT credit of Rs.61,04,079/-, Rs.1,58,040/- was allowed and Rs.59,46,039/- was disallowed. The Petitioner's claim of adjusting CENVAT credit from the outstanding arrears is unreasonable and unjustified. 10. The amount required to be recovered from the Petitioner as an arrears due cannot be considered p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Petitioner could not produce any document to justify the claim of the CENVAT credit i.e. dis-allowed by the adjudicating authority. No doubt Petitioner would be entitled for the benefit of CENVAT credit. The Petitioner will have to justify the same by necessary documentary evidence. Once the CENVAT credit is disallowed, in absence of proof of it, it would be difficult for the court to conclude about the justification to claim the benefit of CENVAT credit. 13. In absence of the proof, of the Petitioner having paid the tax to which the Petitioner is entitled for the benefit of CENVAT, the documents would be necessary to come to the conclusion. It is not the case that the Petitioner was not accorded with the opportunity. The show cause noti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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