Bombay High Court directs Designated Committee to issue the discharge Certificate and Refund amount to the tune of Rs.45.60 Lakhs [Read Order]

Bombay HC - designated committee - discharge certificate - refund amount - taxscan

The Bombay High Court directed the designated committee to issue the discharge certificate and refund amount to the tune of Rs.45.60 Lakhs.

The Petitioner, Eureka Fabricators Pvt. Ltd. is a manufacturing unit holding central excise registration for manufacturing of pressure vessels i.e. road tankers and storage tanks falling under tariff item No.73090090 of the first schedule to the Central Excise Tariff Act, 1985.

Intelligence input was received by officers of the headquarters of Anti Evasion Wing Thane-I Commissionerate that the petitioner was clearing pressure vessels / 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 by the petitioner’s clients for fabrication.

The Respondent, Designated Committee issued Form SVLDRS-2 on October 23, 2019 quantifying the estimated amount payable under the scheme at Rs.33,13,483. Petitioner appeared before the Designated Committee for personal hearing on 23.10.2019 and filed its written submissions.

The Designated Committee re-issued Form SVLDRS-2 estimating the amount payable by the petitioner under the scheme at Rs.33,13,483.

The petitioner submitted Form SVLDRS-2A itself stating that the challans pertaining to two deposits namely Rs.55,17,877 paid towards central excise duty and Rs.18,00,000 paid towards interest were not considered while estimating the amount and if so considered the balance final amount payable under the scheme would be Rs.9,95,607 only.

However, Designated Committee by order in Form SVLDRS-3 quantified the estimated amount payable by the petitioner under the scheme at Rs.55,56,045.

The petitioner filed Petition for quashing Form No. SVLDRS-3 and for re- determination of the ‘amount payable’ under the scheme at Rs.9,95,607. By order this Court quashed Form No. SVLDRS-3 subject to the petitioner depositing the sum of Rs.55,56,045 with the respondents and further directed the Designated Committee to give a hearing to the petitioner for estimation and computation of its liability under the scheme and pass a fresh order in accordance with law.

The division bench of Milind N. Jadhav and Ujjal Bhuyan directed the Designated Committee to issue the discharge certificate in Form SVLDRS-4 to the petitioners in the above terms after giving due consideration to the amounts of Rs.50,00,000, Rs.5,17,877, Rs.18,00,000 deposited by the petitioner as pre-deposit and deposit; and Rs.55,56,045 deposited by the petitioner under order of this court within a period of 4 weeks from the receipt of a copy of this order.

The court further irected the respondents to refund the sum of Rs.45,60,438.00 to the petitioner within a period of 4 weeks after issuance of the SVLDRS-4 forum.

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