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TMI Blog2024 (7) TMI 757X X X X Extracts X X X X X X X X Extracts X X X X ..... edings under the indirect tax enactment or as deposit during the inquiry etc. shall be deducted when issuing the statement indicating amount payable by the declarant - at the time of calculation of the amount payable under sub-section (1) of section 124, the amount of pre-deposit is not required to be deducted but the same is required to be deducted while issuing the statement indicating amount payable by the declarant. From the Circular No. 1072 dated 25.09.2019, it is clear that CBIC has clarified that the relief available under section 124 (1) (c) is to be applied to the net outstanding amount of tax dues in arrears after deducting the amount already paid in form of pre-deposit appropriated or paid subsequently by the tax payers voluntarily against the outstanding demand. It is also further clarified that money paid before appropriation is in nature of deposit only. The petitioner has therefore rightly deducted the amount of Rs. 2,27,622/- from the net amount eligible for the Scheme after deducting 60% of Rs. 30,34,955/- from the net eligible amounting to Rs. 12,13,982/- The petitioner is therefore liable to pay Rs. 9,86,360/- only under the scheme and not Rs. 11,22,933/- as sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of section 35F of the Central Excise Act, 1944 read with section 83 of the Finance Act, 1994. 8. The First Appellate Authority dismissed the appeal by order dated 30.08.1999 and confirmed the Order-in-Original. 9. Sabka Vishwas Legacy Dispute Resolution Scheme, 2019 was introduced w.e.f. 5th July, 2019 for resolving pending disputes arising out of the Central Excise Act, Service Tax etc. The petitioner therefore, without challenging the appeal order, filed an application in Form SVLDRS-1 as the demand confirmed under the Order-in-Original became the tax dues and the amount in arrears. On 30.12.2019, the petitioner declared the amount of Rs. 6,82,805/- as tax dues payable. 10. The respondent No. 3-Designated Committee under the SVLDRS issued Form SVLDR-2 on 02.01.2020 as prescribed under sub-rule (3) of Rule 6 of Sabka Vishwas Legacy Dispute Resolution Rules, 2019 [for short the Rules ] and indicated that Rs. 11,22,933/- is payable by the petitioner instead of Rs. 6,82,805/-. 11. The petitioner submitted Form SVLDR-2A on 06.01.2020 along with written submission and rectified the amount payable to the tune of Rs. 9,86,360/-. 12. Respondent No. 3, without considering the written sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Respondent No. 3) in the Form of SVLDRS-3 and letter dated 14.08.2020 (Annexure A collectively) made under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 thereby directing the respondents, their servants and agents to treat the declarations/ applications filed by the petitioners under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 valid and accept the calculation submitted by the petitioner in its Form SVLDRS-2A as sufficient compliance of the Scheme. B. Your Lordships be pleased to issue a Writ of Certiorary or any other appropriate writ, direction or order, quashing and setting aside the letter dated 30.07.2020 (Annexure B) issued by respondent No. 4 and held the same as pre mature and without authority; C. Your Lordships be pleased to issue a writ of mandamus or a writ in the nature of mandamus, or any other appropriate writ, direction or order, to the respondents, their servants and agents to accept the declarations filed by the petitioners and further directing the respondents to consider the submissions (Annexure J to L) made by the petitioner and decides the issue after giving the opportunity of personal hearing and issue the Form SVLDRS-3 afresh, and direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hin next three days. Once the written request is made, the Department would provide the access so that the amount may be deposited within the time allowed. 20. Learned advocate Mr. Dhaval Shah submitted that pursuant to the order passed by this Court, the petitioner has deposited the amount of Rs. 11,22,934/- on 27.10.2020 with the respondent-authority. 21. Learned advocate Mr. Shah on merits submitted that respondent No. 3 committed an error in determination of the amount payable by the petitioner as per the SVLDRS by considering the pre-deposit as an appropriation instead of deposit. 22. Learned advocate Mr. Shah submitted that as per the provision of section 124 (2) of the SVLDRS, the amount of pre-deposit is to be deducted from net amount payable after the applying rate of 60% to the tax dues and amount in arrears whereas, the respondent No. 3 has reduced the tax dues and amount in arrears by appropriating the pre-deposit and thereafter, calculated amount payable under SVLDRS by the petitioner as under: Sr.No. Descriptions Amount (Rs.) 1 Tax dues/service tax demand confirmed as per OIO dated 27.03.2019 30,34,955/- 2 Amount paid on 30.05.2019 2,27,622/- 3 Amount in arrears 28,07 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sum of Rs. 18,99,158.40 Thus, required to pay the petitioner only a sum is of Rs. 3,63,419/(Rs. 18,99,154.40 Rs. 15,35,735/-) and not Rs. 12,75,256/-. 20. The amounts quantified as payable both by the petitioner in Form SVLDRS-1 and by the respondent vide impugned Form SVLDRS-3 dated 19.11.2019 are incorrect. 24. On the other hand, learned advocate Mr. Jay Mehta for the respondent submitted that respondent No. 3 has calculated the amount payable by the petitioner as per the Circular No. 1072/05/2019 dated 25.09.2019 issued by the Central Board of Indirect Taxes and Customs (CBIC). It was therefore, submitted that as per the said Circular, the amount payable under SLVDRS is calculated by the respondent No. 3 after considering the pre-deposit made by the petitioner at the time of filing of appeal as payment of tax by appropriating the same from the tax dues and thereafter, the amount in arrears is calculated which is in accordance with the scheme as well as circular issued by the CBIC. 25. Having heard learned advocates for the respective parties and considering the benevolent scheme of SVLDRS, it appears that respondent No. 3 has calculated the amount payable by the petitioner und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture has therefore, stipulated in sub-section (2) of section 124 that relief calculated under sub-section (1) shall be subject to the condition that amount paid as pre-deposit at any stage of appeal proceedings under the indirect tax enactment or as deposit during the inquiry etc. shall be deducted when issuing the statement indicating amount payable by the declarant. Meaning thereby that, at the time of calculation of the amount payable under sub-section (1) of section 124, the amount of pre-deposit is not required to be deducted but the same is required to be deducted while issuing the statement indicating amount payable by the declarant. 29. This aspect is further clarified by the CBIC in the Circular No. 1072 dated 25.09.2019 as under: (iv) Section 121 (c) defines an amount in arrears as the amount of duty which is recoverable as arrears of duty. Further, Section 123 defines tax dues in respect of arrears as the amount which is due in arrears. In other words, tax dues is the amount of duty which is outstanding against the declarant. This is the net amount after deducting the dues that he has already paid. Such payment may be in the form of pre-deposits appropriated or paid subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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