Bombay HC confirms Final Estimated amount of 55.56 Lakhs payable by Eureka Foundation under SVLDRS [Read Order]

The High Court of Bombay confirmed the quantification of the final estimated amount of  55.56 Lakhs payable by Eureka Foundation under Sabka Vishwas (Legally Dispute Resolution) Scheme, 2019.

The petitioner, Eureka Foundation is a manufacturing unit that manufactures pressure vessels in relation to Road Tankers and Storage Tanks falling under tariff item of the First Schedule to the Central Excise Tariff Act, 1985.

Intelligence was received by the officers of the headquarters of Anti Evasion, that the petitioner company was clearing Pressure Vessels or Tanks in relation to Road Tankers and Storage Tanks for highly inflammable gases such as LPG, Propane, Ammonia, etc. without payment of central excise duty under the guise of job work of fabrication on payment of service tax and simultaneously availing credit of central excise duty paid on the inputs which were supplied free of cost to the petitioner by their clients for the fabrication of their tanks.

The petitioner’s factory was raided and an investigation was carried out resulting in the issuance of Show-Cause-cum-Demand notice to the petitioner calling upon the petitioner to deposit an amount as worked out and recoverable from the petitioner under the provisions of Section 11A(4) of the Central Excise Act, 1944.

The Government of India issued notification framing Sabka Vishwas Rules, 2019 giving an opportunity to the parties for declaration of tax dues payable under the Sabka Vishwas (Legally Dispute Resolution) Scheme, 2019 (SVLDR Scheme 2019).

The petitioner filed an online application in Form No. SVLDRS-1 declares tax dues payable under the Scheme, after deduction of the amount already paid, as Rs. 9,95,606.00.

The Division Bench of Justice Milind N. Jadhav and Justice K.K. Tated confirmed the quantification of the final estimated amount of 55.56 Lakhs payable by Eureka Foundation under Sabka Vishwas (Legally Dispute Resolution) Scheme, 2019.

“If the petitioner deposits the above amount, respondent, No. 3 The committee shall give a hearing to the petitioner on the estimation and computation of the liability of the petitioner under SVLDRS-3, determine the excise duty payable and pass a fresh order in Form No. SVLDRS-3 and intimate the same to the petitioner in accordance with the law,” the court said.

“If respondent No. 3 The committee comes to the conclusion that the balance liability of the petitioner towards payment of excise duty is less than Rs. 55,56,045.00, in that event, the differential amount of deposit made by the petitioner under this order and the duty determined shall be immediately refunded to the petitioner within a period of two weeks from the date of passing of the fresh SVLDRS-3 order,” the bench added.