Bombay HC quashes Order rejecting SVLDRS-1 Declaration as Contrary to objective of SLVDR Scheme, remands back to Designated Committee [Read Order]

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The Bombay High Court has quashed the Order rejecting SVLDRS-1 Declaration as contrary to the objective of SLVDR Scheme and remanded back to the Designated Committee.

The petitioner, Nabeel Construction Pvt. Ltd. has been engaged in providing construction services of commercial or industrial buildings and civil structures, other than residential complexes. It is the case of the petitioner that in the month of February 2019, an enquiry for investigation was narrated by the Directorate General of GST Intelligence, Zonal Unit, Mumbai. During the course of the investigation, the petitioner submitted copies of the documents on demand, to the officers of the respondent. The Director of the petitioner tendered his statement before the Senior Intelligence officer of the respondent. 

During the course of the said statement, the Director of the petitioner declared and admitted the total tax liability. A portion of the said amount was subsequently confirmed in the show-cause notice. The petitioner paid an amount prior to the recording of the said statement and Rs.60 lakhs after recording the said statement in two instalments.

The CBIC issued a circular dated 27th August, 2019 explaining and qualifying the said Scheme. The petitioner proposed to avail the benefits i.e. reliefs in tax dues, interest and penalty etc and filed a Declaration dated 30th December, 2019 under the category – ‘Investigation or Enquiry’ and sub-category – ‘Investigation by DGGI’ for the duty type – ‘Service Tax’. It is the case of the petitioner that when the petitioner filed the said Declaration dated 30th December, 2019, the enquiry or investigation was still in progress against the petitioner and was pending against the petitioner. The amount was clearly included within the scope of ‘tax dues’.

The division bench of Justice S.M.Modak and Justice R.D.Dhanuka held that the respondents is not only contrary to various principles of law laid down by this Court in catena of decisions referred to aforesaid but also contrary to the objects and reasons and the intent of the Central Government in introducing the said scheme for the benefit of the assessee and to bring them out of litigation forever pending under pre-GST regime. The view taken by the respondents thus deserves to be quashed and set aside with the order of remand.

Nabeel Construction Pvt. Ltd. vs Union of India


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