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TMI Blog2024 (4) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... Committee then the Petitioner would have got an opportunity of personal hearing and of making written submissions by filing Form SVLDRS-2A. However, in the present case, without issuing Form SVLDRS 2, the Designated Committee has straight away issued Form SVLDRS 3, thereby depriving the Petitioner of an opportunity of a personal hearing. This action of the Designated Committee of straight away issuing Form SVLDRS 3, without issuing Form SVLDRS 2, is not only in violation of Section 127 of the Sabka Vishwas Scheme and Rule 6 of the Sabka Vishwas Rules but is also in total violation of the principles of natural justice. Form SVLDRS 3 is required to be quashed and the matter is required to be remanded back to the Designated Committee for taking a fresh decision in the matter, after giving an opportunity of hearing to the Petitioner - Form SVLDRS 3, dated 2nd December 2020, is hereby quashed and set aside. Petition allowed by way of remand. - G. S. KULKARNI FIRDOSH P. POONIWALLA, JJ. For the Petitioner : Mr. Bharat Raichandani a/w Mr. Prathamesh Gargate i/b M/s. VBR Legal Advocates. For the Respondent Nos. 3 to 6 : Smt. Asha Desai a/w Smt. Maya Majumdar. JUDGMENT: (PER FIRDOSH P. POO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e benefits thereunder if Show Cause Notice had been issued and no final hearing had taken place before 30th June 2019. In the case of the Petitioner, Show Cause Notice was issued before 30th June 2019 and no final hearing had taken place before 30th June 2019. Hence, it is the case of the Petitioner that it was eligible to file a declaration under the Sabka Vishwas Scheme. 8. Further, Section 124(1)(a) of the Sabka Vishwas Scheme states that the amount payable under the Scheme is 50% of the tax dues in a case where tax dues are more than Rs. 50.0 lakhs, where the tax dues are relatable to a Show Cause Notice which is pending as on 30th June 2019. Section 124(2) of the Sabka Vishwas Scheme, inter alia, allows for deduction of the amount of any pre-deposit / any deposit paid by the declarant. It is the case of the Petitioner that, in the present case, the tax dues i.e. the amount in dispute is Rs. 2,44,77,423/-. Thus, the amount payable by it before adjusting the pre-deposit / deposit is Rs. 1,22,38,711.50 (50% of Rs. 2,44,77,423/-). 9. It is further the case of the Petitioner that, inadvertently, the Petitioner, instead of declaring Rs. 1,70,46,567/- under the pre-deposit column in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the Petitioner's case and after going into the validity, and legality of the provisions set aside and quash SVLDRS Form 3 vide impugned order dated 21.02.2020 (Exhibit A ) and Show cause notice dated 12.04.2019 (Exhibit B ). (b) that this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality of the provisions stay the operation of SVLDRS Form 3 vide impugned order dated 21.02.2020 (Exhibit A ); (c) that this Hon'ble Court be pleased to issue a Writ of Certiorari or a writ in the nature of Certiorari or any other writ, order or direction under Article 226 of the Constitution of India calling for the records pertaining to the Petitioner's case and after going into the validity and legality of the provisions direct the respondents to not initiate any coercive action seeking recovery of alleged dues against the Petitioner during the pendency of the present petition; (d) that this Hon'ble Court be pleased to issue a writ of mandamu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case, no Form SVLDRS 2 was issued despite the declarant having disputed the amount payable in Form SVLDRS 1 itself. Further, no opportunity of personal hearing was granted to the Petitioner. He submitted that this was in clear violation of the provisions of Section 127 of the Sabka Vishwas Scheme and Rule 6 of the Sabka Vishwas Rules. Mr. Raichandani submitted that, in these circumstances, this Court ought to quash the said Form SVLDRS 3 issued by the Respondents. 20. Mrs. Asha Desai, the learned counsel for Respondent Nos. 3 to 6, would submit that the pre-deposit of Rs. 1,70,46,567/- is not appearing in the Show Cause Notice for which the application is made in Form SVLDRS 1 under the Scheme. She further submitted that there is no such mention of the pre-deposit in the Show Cause Notice stating that an amount of Rs. 1,70,46,567/- had already been paid by the Petitioner nor is there any proposal for appropriation of the said amount in the Show Cause Notice. She further submitted that the Petitioner had also not mentioned the said amount in the Pre-deposit column appearing in the SVLDRS 1 Form. Although a specific column had been provided in the said Form for mentioning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under sub-sections (1) and (4) of section 127, as the case may be, shall be issued by the designated committee electronically, within a period of sixty days from the date of receipt of the declaration under sub-rule (1) of rule 3, in Form SVLDRS-3 setting forth therein the particulars of the amount payable : Provided that no such statement shall be issued in a case where the amount payable, as determined by the designated committee is nil and there is no appeal pending in a High Court or the Supreme Court. (3) Where the amount estimated to be payable by the declarant exceeds the amount declared by the declarant, then, the designated committee shall issue electronically, within thirty days of the date of receipt of the declaration under sub-rule (1) of rule 3, in Form SVLDRS-2, an estimate of the amount payable by the declarant along with a notice of opportunity for personal hearing. (4) If the declarant wants to indicate agreement or disagreement with the estimate referred to in sub-rule (3) or wants to make written submissions or waive personal hearing or seek an adjournment, he shall file electronically Form SVLDRS-2A indicating the same: Provided that if no such agreement or di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the declarant does not appear before the designated committee for personal hearing, the Committee shall decide the matter based on available records. The above provisions show that, on a conjoint reading of Section 127, with Rule 6, where the Designated Committee disagrees with the amount declared by the declarant, then it is required to issue Form SVLDRS 2, grant an opportunity of personal hearing to the declarant and then decide the matter. 26. In the present case, the Petitioner had disputed the amount payable in Form SVLDRS 1 itself. In Form SVLDRS 1, under the title Reason for disagreement , the Petitioner had disputed the amount payable by stating as under: Reason for disagreement Show cause is for value of services of Rs. 19,80,37,410/-. However, credit for service tax on value of services as per service tax return filed in Form ST 3 of Rs. 137917204 plus service tax and edu cess h.edu cess of Rs. 1,70,46,567/-, aggregating to Rs. 15,49,63,770/- has not been given. The amount of disputed value of services is Rs. 4,30,73,640/- i.e. Rs. 19,80,37,410 less Rs. 15,49,63,770/. 27. In these circumstances, in our view, as per the provisions of the Section 127 of the Sabka Vishw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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