Benefit of the SVLDRS Scheme cannot be Denied for filing under Wrong Category: Calcutta HC [Read Order]

In a  recent judgement the High Court (HC) of Calcutta has held that benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme ( SVLDRS ) 2019 cannot be denied for filing under the wrong category.

GE Power India Limited, the petitioner has challenged the impugned orders dated 12th February 2020 rejecting the petitioner’s applications under Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) 2019 and rules thereunder. 

A show cause notice dated 10.03.1997 was issued to the petitioner by the Superintendent of Central Excise, Durgapur, calling upon it to show cause as to why short payment of duty of Rs.51,01,958/- for the period from 1.11.1996 to 28.02.1997 should not be demanded from the petitioner under Rule 9(2) of the Central Excise Rules, 1944 read with Section 11A(1) of the Central Excise Act, 1944.

On a similar issue, another show cause notice was issued to the petitioner on 22.09.2004 by the Commissioner of Central Excise, Bolpur, for the period starting from 16.03.1995 to 31.10.1996 raising a demand of Rs.2,94,18,967/-. The demand was confirmed by a common order-in-original passed by the commissioner of Central Excise, Bolpur, against which the petitioner filed an appeal and stay petition before the CESTAT.

The CESTAT passed (“Stay Order”)order directing the petitioner to make a pre-deposit of 25% of the disputed excise duty as a condition precedent for hearing the appeal in question on merits and the date of compliance of the said order was fixed on 17.09.2007. Due to non compliance with the condition of the stay, the appeal of the petitioner was dismissed by the CESTAT.

Justice Md. Nizamuddin observed that the impugned orders dated 12th February 2020 rejecting the petitioner’s applications under the SVLDRS 2019, are arbitrary, invalid, perverse and not tenable in the eye of the lawsince the show cause cum demand notices in question issued by the adjudicating authority were received by the petitioner before the 30th June 2019, as per Section 123(b) of the aforesaid scheme and the ‘duty’ was due and payable by the petitioner and the tax dues were relatable to show cause cum demand notices which were pending adjudication on 30th June 2019 as per Section 124(1)(a) of the aforesaid Scheme.

Further observed that the Petitioner could not be called not eligible or excluded to make a declaration under the said scheme given Section 125(1)(c) of the aforesaid scheme since no final hearing had taken place on or before the 30th June 2019.

The Court set aside the aforesaid impugned order which rejected the aforesaid applications of the petitioner filed under SVLDRS- 2019 and the respondent’s authority was directed to grant appropriate relief to the petitioner under the aforesaid Scheme by reconsidering the aforesaid applications after giving the opportunity of hearing to the petitioner or its authorised representative.

To Read the full text of the Order CLICK HERE

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