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TMI Blog2023 (7) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... 2019 i.e. on 21.05.2019. Apparently, therefore, the perception of the department that there was no quantification before 30.06.2019 is clearly misconceived. Support can be drawn from the circular of the department itself dated 27.08.2019 wherein in para 10 (g) thereof a clarification was made that quantified would also include a written communication intimating duty demand or duty liability admitted by a person during inquiry. That admission in the facts of the case had come on 21.05.2019 for the dues already paid and admitted by the assessee which was not even disputed as has now come on record by virtue of an order being OIO passed on 20.06.2023 pursuant to the investigation proceedings wherein the figure of outstanding tax dues is quantified at the same figure as that in the communication dated 21.05.2019. The amount in question stood quantified before the cut-off date in accordance with the circulars of the department and thus the action on the part of the department making the petitioner ineligible to file declaration under the scheme is required to be quashed and set aside - the impugned order set aside - respondents are directed to accept the declaration filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urts and tribunals. Under the scheme the application window to apply for settlement of disputes was open from 01.09.2019 to 31.12.2019 which was subsequently extended till 15.01.2020 by respondent no. 1. 3.3 It is the case of the petitioner that being engaged in the business of manufacturing, supply and distribution of HSRPs in the State of Gujarat, the petitioner imports goods by a vessel from a place outside India to the customs station of clearance in India for which the petitioner pays ocean freight. The company did not pay service tax on royalty as well as on the ocean freight services under reverse charge mechanism. The petitioner company therefore was issued a summons vide letter dated 01.06.2018 under Section 14 of the Central Excise Act, 1944 read with Section 70 of the CGST Act, 2017. In compliance of the summons, the petitioner supplied all the documents on 11.06.2018 and the statement of one Mr. Kapil Popat was recorded on 13.06.2018 by DGGI, Vapi in which all tax liabilities were duly admitted. The total service tax liabilities of Rs. 92,12,344/- was paid by the petitioner and in proof thereof challans are annexed to the petition. By a letter dated 21.05.2019 the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... online under the SVLDRS on 11.09.2019. According to the department, in light of Section 125(1)(e)of the Finance Act, 2019 since there was no quantification of tax dues on or before 30.06.2019, the benefit of the scheme could not be given and therefore the petitioner was declared ineligible to make the declaration under the scheme. 4.1 Mr. Nainawati, learned counsel for the petitioner would invite the court s attention to the letter dated 21.05.2019 written by the assessee to the Senior Intelligence Officer, DGGI, Vapi Regional unit. Reading the letter, he would submit that the petitioner had agreed to the points raised during the verification/scrutiny and the amounts together with interest liability were admitted with a request that the issue may be treated as closed. He would further submit that the perusal of the statement of Mr. Kapil Popat recorded on 03.07.2020 would also indicate that the assessee clearly admitted the service tax liabilities as recorded in the statement. 4.2 Further inviting the court s attention to the communication of the DGGI, Vapi dated 24.10.2019 wherein the tax liability dues were set out together with a form, he would submit that the fact that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Divyeshwar, learned advocate appearing for the Revenue would rely on the affidavit-in-reply especially the purposeful interpretation given by the department to Section 125 of the Finance Act, 2019 and reiterate that since there was no quantification on or before 30.06.2019, the petitioner was ineligible under the Scheme. 6. Having considered the submissions made by learned counsels for the respective parties and having perused the factual scenario, especially in light of the representation made by the petitioner pursuant to an order of the Division Bench of this court, the chronology of dates would indicate that as per the scheme the application window to apply for settlement of disputes was from 01.09.2019 to 31.12.2019. As per Section 125(1)(e), though benefit of the scheme was to be given where there was a quantification on or before 30.06.2019 and in the perception of the department that quantification was not done before that relevant date appears to be misconceived. It is apparent from the letter dated 21.05.2019 of the petitioner that it was the case of the petitioner that during the course of verification of record, the petitioner had agreed to the points raised during ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in an oral statement by the petitioner before 30th June, 2019 and consequently stood quantified prior to the cut-off date in accordance with the beneficial circulars dated 12th December, 2019 and 27th August, 2019 issued by the Central Board of Indirect Taxes and Customs. 18. This Court is further of the opinion that a liberal interpretation has to be given to the SVLDRS, 2019 and the circulars issued by Central Board of Indirect Taxes and Customs as their intent is to unload the baggage relating to legacy disputes under the Central Excise and Service Tax and to allow the businesses to make a fresh beginning. 19. Consequently, the rejection order dated 17th January, 2020 is quashed and the Designated Committee is directed to decide the petitioner s application in accordance with the observations and findings of this Court after giving an opportunity of hearing to the petitioner. For this purpose, list the matter before the Designated Committee on 03rd September, 2020 at 11:00 A.M. A reasoned order, after giving an opportunity of hearing to the petitioner, shall be passed by the Designated Committee on or before 21 st September, 2020. 9. Even a co-ordinate bench ..... X X X X Extracts X X X X X X X X Extracts X X X X
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