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Gauhati HC grants relief to Assam Cricket Association, allows correction of Form for Service Tax Amnesty Scheme [Read Order]

Assam Cricket Association - correction - Taxscan

The Gauhati High Court directed the petitioner, Assam Cricket Association to submit an application for correction of the information provided in Form SVLDRS-1.

The petitioner, Assam Cricket Association is an assessee under the Finance Act, 1994 as regards their liability to pay service tax. For the period 2009-2014, that certain conclusion was arrived at against the petitioner that the required amount of service tax was not paid by them. As a consequence thereof, by the order of the Commissioner GST and Central Excise, Guwahati a penalty of Rs.11,48,82,644 was imposed on the petitioner under Proviso 1 to Section 78 of the Finance Act, 1994.

Against such levy and imposition of penalty, the petitioner preferred an appeal before the Customs Excise and Service Tax Appellate Tribunal, Kolkata. In the appeal, the mandatory deposit of 75% of the levied amount was also paid by the petitioner.

During the pendency of the appeal, a scheme called Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 was introduced under Chapter-V of the Finance Act, 1994. As provided in Section 124(1)(a)(ii) of the Finance Act 1994, amongst the various other reliefs that are available, an assessee is also entitled to a relief under the scheme upto 50% of the tax dues if the amount due is more than Rs.50 lakhs.

It is the claim of the petitioner that they come within the purview of relief provided in Section 124(i)(a)(ii).

Section 125(1)(a) to (h) of the Finance Act, 1994 provides that all persons shall be eligible to a declaration under the Scheme 2019 except for the persons mentioned in sub-clauses (a) to (h). It is an admitted position of the parties that the petitioner does not come within the purview of the exceptions provided in sub clauses (a) to (h) of Section 125, meaning thereby that they are otherwise eligible to make a declaration under Scheme 2019.

The issue raised in this case was whether the claim of the petitioner for the benefit under Scheme 2019 would stand rejected as because of the aforesaid mistake of not mentioning the penalty or a different view can also be taken in the matter.

The single Judge Bench of Justice Achintya Malla Bujor Barua disposed of the petition by requiring the petitioner to submit an application before the respondent authorities for correction to be made in the information provided in the Form SVLDRS-1 as regards the penalty imposed and upon such application being made, within a period of 15 days.

The court further directed the respondent authorities to pass a reasoned speaking order thereon within a period of 2 months from the date of receipt of the application.

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