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TMI Blog2024 (7) TMI 815X X X X Extracts X X X X X X X X Extracts X X X X ..... idered similar issue of permitting the assessee to grant the benefit of SVLDRS by directing the respondent authority to permit the petitioner to make the payment as per the Form SVLDRS-2 along with interest at the rate of 9% per annum in case of M/ S L.G. Chaudhari [ 2022 (10) TMI 631 - GUJARAT HIGH COURT ]. The respondent authority is directed to permit the petitioner to make the payment of Rs. 77,80,000/- with interest at the rate of 9% from the due date of payment till the actual payment - Petition allowed. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MR. JUSTICE NIRAL R. MEHTA Appearance: For the Petitioner(s) No. 1,2 : Mr Parth Rachh With Amal Paresh Dave (8961). For the Petitioner(s) No. 1,2 : Mr Paresh M Dave (260). For the Respondent(s) No. 2,3 : Jay A Mehta (9088). For the Respondent(s) No. 1 : Mr Devang Vyas (2794). ORAL ORDER (PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA) Learned advocate Mr. Rachh has tendered the draft amendment. The same is allowed in terms of draft and shall be carried out forthwith. 1. Heard learned advocate Mr. Parth Rachh with learned advocate Mr. Premal Dave for the petitioners and learned advocate Mr. Jay Mehta for the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of Rs. 3,23,94,404/- for the period from 01.04.2016 to 30.06.2016. The petitioner, thereafter, filed a letter dated 24/25.06.2019 with the Preventive Officer agreeing to the service tax liability of Rs. 3,23,94,404/- and also submitted various documents of deriving such tax liability and documents in support of the deductions and abatements admissible to the petitioner against such tax liability. The petitioner deposited total sum of Rs. 84,16,556/- during the investigation towards the tax liability for the above period. 4.4 The Central Government introduced Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (for short SVLDRS ) on 01.09.2019 for settling old cases involving central excise and service tax demand with an objective of reducing the litigation relating to taxes and allowing the trade to make a new beginning and focus on GST, which has come into effect on 01.07.2017. 4.5 The petitioner filed declaration in Form-1 under SVLDRS on 23.12.2019 declaring tax liability of Rs. 3,23,94,404/- for settlement of the case. 4.6 The petitioner thereafter filed a revised declaration and declared net tax liability of Rs. 1,52,63,141/- on 15.01.2020 by deducting/adjusting CENVAT cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner if the acceptance of the estimate SVLDRS-2 was communicated by 31.05.2020. 4.13 The petitioner once again requested the designated committee by letter date 20.07.2020 for permitting the petitioner to pay the specified amount as per the Form SVLDRS-2 issued by the committee on 29.01.2020. 4.14 The designated committee by letter/order dated 10.08.2020, rejected the request of the petitioner. Being aggrieved, the petitioner has therefore filed this petition with the aforesaid prayers. 5. Learned advocate Mr. Parth Rachh for the learned advocate Mr. Premal Dave submitted that the designated committee could not have rejected the request of the petitioner to permit the petitioner to pay the amount as per the Form SVLDRS-2. 6. Learned advocate Mr. Rachh for the petitioner referred to the various provisions of the SVLDRS to submit that once the committee has issued the Form SVLDRS-2, then it was not possible for the designated committee to re-examine the application of the petitioner. Reference was made to the provisions of Sections 126 and 127 of the scheme of SVLDRS to submit that once the verification of the declaration is done by the designated committee as provided under Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The present case falls in the category where the Designated Committee has accepted the amount declared by the declarant. The fact that form SVLDRS-3 is not issued to the Petitioner is an admitted position. This fact is admitted in the reply affidavit filed on behalf of Respondent Nos. 3 to 6 by the Assistant Commissioner of CGST Central Excise, Division VI, Thane Commissionerate. Further, the Petitioner was eligible for availing the benefit of the Scheme is also accepted, and it is further stated in the reply affidavit that if the Petitioner is allowed to deposit the eligible amount it should be with interest at the rate of Rs. 9% per annum, which stand is reiterated before us by the learned Counsel for the Respondents. Therefore, the issuance of form SVLDRS-3 was necessary, and it was not issued to the Petitioner due to the error on the part of the Respondents is an accepted position. The Petitioner therefore is entitled to a direction to the Respondent to accept the eligible amount. 7. Relying upon the aforesaid decision, it was submitted that the impugned orders dated 06.05.2020 and 10.08.2020 are required to be quashed and set aside directing the respondent authority to accept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot in dispute that the petitioner was eligible for benefit of SVLDRS. The respondent-designated committee has already issued the Form SVLDRS-2 providing estimate of Rs. 77,80,000/- to be deposited by the petitioner. Therefore, the petitioner is required was required to pay the said amount. However, the petitioner computed the net liability by revising the estimate and filed on 15.01.2020 amounting to Rs. 1,52,63,141/- and sought opportunity of hearing before the designated committed. The designated committee instead of rejecting the request of the petitioner to reduce the estimated for settling the case of re-examine the application of the petitioner and passed an order dated 06.05.2020 rejecting the same. The provisions of SVLDRS of Section 126 and Section 127 read as under:- 126. (1) The designated committee shall verify the correctness of the declaration made by the declarant under section 125 in such manner. as may be prescribed: Provided that no such verification shall be made in case where a voluntary disclosure of an amount of duty has been made by the declarant. (2) The composition and functioning of the designated committee shall be such as may be prescribed. Issue of stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to have permitted the petitioner to make the payment as per the estimate given in Form SVLDRS-2 for settlement of the case of the petitioner. The Bombay High Court in case of Virtusa Systems (India) Private Limited (supra), in such circumstances, has held as under:- 5. As per the procedure to be followed under the Scheme and as per section 127 of the Finance Act 2019, a declaration in form SVLDRS-1 is required to be filed online by a declarant. The same is thereafter verified. If the Designated Committee finds that the amount estimated by the Designated Committee is equal to the amount declared by the declarant, then the Designated Committee will issue form SVLDRS-3 indicating the amount payable within 60 days from the date of receipt of the declaration. As per section 127 (1) of the Act of 2019, when the amount payable by the declarant as estimated by the Designated Committee equals the amount declared by the declarant upon so communicated by way of an electronic form, the statement has to be issued within 60 days from the date of receipt of the declaration. As per section 127(5) of the Act of 2019 read with Rule 7 of Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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