Bombay High Court directs Designated Committee to consider fresh declaration and grant the consequential relief under SVLDR Scheme [Read Order]

Bombay High court - Designated Committee - fresh declaration -SVLDR Scheme - Taxscan

The Bombay High court directed the Designated Committee to consider a fresh declaration and grant the consequential relief under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SLVDRS).

The petitioner, Saksham Facility Services Private Limited is a company incorporated under the Companies Act, 1956 having its registered office at Mumbai. Earlier, it had service tax registration for providing security or  detective agency services and presently it has Goods and Services Tax (GST) registration.

The summons were issued to the petitioner by the Senior Intelligence Officer in the Directorate General of Goods and Services Tax (GST) Intelligence, Mumbai Zonal Unit, wherein that a case / inquiry regarding evasion of service tax was being conducted by the said officer under the Finance Act, 1994 read with section 174 of the the CGST Act.

The Senior Intelligence Officer mentioned that he had reasons to believe that the petitioner was in possession of facts, documents and things relevant for the said inquiry pertaining to the period prior to GST i.e., prior to 01.07.2017. Accordingly, the petitioner was summoned to appear before the said authority.

In connection with the said inquiry, statement of Sanjay Shirke, Director of petitioner company was recorded under section 83 of Chapter V of the Finance Act, 1994 read with section 14 of the Central Excise Act, 1944 read with sections 174 and 70 of the CGST Act on the same day i.e., on 27.06.2019 before the said Senior Intelligence Officer.

In the said statement, in response to a query he admitted and accepted revised service tax liability of Rs.2,47,32,456 for the period from 2015-16 upto June, 2017 and that service tax of Rs.1,20,60,000 was already paid. He further stated that the remaining amount of service tax along with interest and penalty would be paid by the end of July, 2019.

In the meanwhile, the Central Government introduced a scheme called the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 as part of Finance (No.2) Act, 2019 was the due date fixed for the commencement of the scheme. Rules under the said scheme called Sabka Vishwas (Legacy Dispute Resolution) Scheme Rules, 2019 were also framed and notified.

The petitioner seeks quashing of order whereby declaration of the petitioner under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was rejected and further seeks a direction to the respondents to consider afresh the aforesaid declaration as a valid one and thereafter grant consequential relief to the petitioner in terms of the said scheme.

The division bench of Justice Ujjal Bhuyan and Justice Abhay Ahuja set aside the order and remand the matter back to the Designated Committee to consider afresh the declaration of the petitioner as a valid declaration and grant the consequential relief after giving due opportunity of hearing to the petitioner who shall be informed about the date, time and place of the hearing. Such decision shall be in the form of a speaking order with due intimation to the petitioner. The entire exercise shall be carried out within a period of six weeks from the date of receipt of a copy of this judgment and order.

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