Enquiry Notice u/s 125 of GST Act is Not a Bar to Avail Benefit of Amnesty Scheme: Rajasthan HC [Read Order]

The Rajasthan High Court has held that the benefit of amnesty scheme under the Sabka Vikas Legacy Dispute Resolution Scheme, 2019 cannot be denied merely on ground that the enquiry notice under section 125 of GST Act is issued to the assessee.

The petitioner, M/s Sonjoli Construction Co, has approached the Court contending that the application filed by them has been rejected only an erroneous ground that audit had been initiated and hence, the petitioner was not entitled to the benefit of the SVLDR Scheme. The petitioner submitted that the enquiry notice under Section 125(1)(i) of the GST Act as referred to in the order dated 12.10.2020 was issued after the cut-off date i.e. 30.06.2019 and as such, the same was time barred and could not be used as a ground to deprive the petitioner from taking benefit of the Voluntary Disclosure Scheme.

Justice Sandeep Mehta and Justice Chandra Kumar Songara held that “the action of the respondents in initiating the enquiry and denying the petitioner the opportunity to avail benefit under the SVLDR Scheme is absolutely illegal and unjustified.”

“The Declaration Forms filed by the petitioners are restored to file and are remanded to the respondent no.3 for taking a fresh decision on these two declaration forms filed by the petitioner by treating the same as valid declarations under the ‘voluntary disclosure’ category and thereafter grant the admissible relief to the petitioner. The respondents shall grant an opportunity of personal hearing to the petitioner by issuing seven days clear notice before the date of proposed hearing. The petitioner shall remain present at the time of hearing before the respondent no.3, without fail.The respondent no.3 shall pass a reasoned order, in accordance with the law within a period of eight weeks from the date of receipt of an authenticated copy of this judgment. The order that would be passed by the respondent no.3, shall be communicated to the petitioner within one week from the date of passing such order,” the High Court said.

“It is made clear that the respondents are empowered to take action under Section 129(2)(c) of the said Scheme, if within a period of one year of issuance of the discharge certificate against the petitioner, the respondent no.3 finds that the material particulars furnished in the declaration filed by the petitioner are found to be false,” the Court said.

To Read the full text of the Order CLICK HERE

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