Dismissal of Appeal merely because of Application filed for SVLDRS and withdrawn subsequently is not valid: CESTAT [Read Order]

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT) of Delhi has held that Dismissal of appeal merely because of Application filed for SVLDRS and withdrawn subsequently is not valid.

Ms Surabhi Sinha, Advocate appeared for the appellant and Mr Gopi Raman, Authorised Representative appeared for the respondent

M/s Icon Industries, the appellant challenging the impugned order dated 20.02.2020 passed by the Commissioner of Central Goods & Service Tax which without going into the merits of the matter dismissed the same as deemed to have been withdrawn.

The Commissioner has erred in dismissing the appeal as deemed to have been withdrawn merely because the appellant applied under SVLDRS, 2019 whereas the same has been withdrawn subsequently.

Sabka Vishwas (Legacy Dispute Resolution) Scheme (SVLDRS) was introduced by way of the Finance (No. 2) Act, 2019 by the Central Governmentto provide for the settlement of pending disputes related to indirect taxes. The Appellant although applied under the said scheme but the same was withdrawn later on for the reasons best known to them.

The payment was not made by them within the period stipulated under Section 127(5) of the Finance Act and as a result, no discharge certificate in form SVLDRS-4 in terms of Section 127(8) of the Finance Act was issued to the Appellant.

A Coram of single member Shri Ajay Sharma, member (judicial) observed that unless the tax dues as pointed out by the Designated Committee have been paid by the applicant under the said scheme, the issue cannot be said to have been settled. Further viewed that without looking into it merely on applying under SVLDRS, the Commissioner (Appeals) erred in dismissing the Appeal as deemed to have withdrawn.

The Tribunal set aside the impugned order without going into the merits and remanding the matter back to the learned Commissioner (Appeals) to decide the appeal afresh on merits. The appeal is accordingly allowed by way of remand.

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