The Bombay High Court remanded the matter back to the Respondent authority to consider a fresh declaration under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS).
The petitioner, Bhoomi Developers is a partnership firm engaged in the business of providing construction services and works contracts to customers. Being a service provider it was registered as such under the Finance Act, 1994.
The Respondent had initiated enquiry against the petitioner for alleged short payment of service tax for the period from April 2014 to March 2017. In this connection, the petitioner received letters from the respondents. Responding to such letters, petitioner wrote letter to the Superintendent, Central Excise and Goods and Services Tax (GST), Palghar stating that out of the total liability of Rs.20,88,947 towards service tax dues, it had already made payment of Rs.18,21,958, further stating that the remaining dues would be paid as early as possible.
In the meanwhile, Central Government introduced the scheme through the Finance (No.2) Act, 2019 to bring to an end pending litigations pertaining to central excise and services tax under the erstwhile indirect tax regime which stood subsumed under GST.
In order to avail the benefit under the scheme, the petitioner filed declaration under the category of “investigation, enquiry or audit” with sub-categorization of “investigation by commissionerate”. Amount of service tax dues was mentioned as Rs.20,88,947. Petitioner also disclosed pre-deposit of Rs.18,21,958. According to the petitioner, tax dues payable by it after availing the tax relief under the scheme would be nil.
However, the respondents had rejected the petitioner’s declaration on the ground of ineligibility with the remark “amount not quantified”.
The division bench of Justice Milind N. Jhadav and Justice Ujjal Bhuyan quashed the order and remand the matter back to respondent authorities to consider the declaration of the petitioner in terms of the scheme as a valid declaration under the category of investigation, inquiry, and audit and thereafter grant the consequential relief to the petitioner.
The court directed that the respondents shall provide an opportunity of hearing to the petitioner and thereafter pass a speaking order with due intimation to the petitioner within a period of six weeks.
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