The Gujarat High Court set aside the rejection of application under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 ( SVLDRS ) for ineligibility under the category investigation, enquiry, and audit.
The petitioner company, M/s E.I. Dupont India Pvt. Ltd. is engaged in manufacturing of polymers, crop protection products, insecticides and fungicides, herbicides, resins etc. With respect to the manufacturing activities, the audit proceedings were carried out for the period from June 2014 to June 2017 by the office of the Commissioner, CGST and Central Excise.
During the audit, some discrepancies were found and accordingly the petitioner was issued a letter directing to discharge the tax liability with applicable interest and penalty as mentioned in the aforesaid letter.
On account of the introduction of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 by the Central Government with the object to bring an end to pending litigation under the indirect tax regime, the petitioner company chose to avail the benefit under the Scheme, 2019 and filed its declaration in Form SVLDRS-1 seeking the tax benefit to the extent of 50 % of the total tax dues as quantified and intimated to the petitioner vide letter.
The category under which the application (declaration) filed was investigation, enquiry or audit and it was disclosed that, Rs.1,22,18,781 as being the amount payable for availing the benefit under the Scheme, 2019.
However, the respondent rejected the application stating that the application was not eligible under the category of investigation, enquiry or audit.
The writ applicant sought the quashing of the order of the respondent authority in rejecting the application (declaration) filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 for settlement of excise duty as conveyed by letters.
The applicant further challenged the legality of the statement issued in Form SVLDRS-2 issued by respondent authority and sought direction to process the declaration made by the petitioner in Form SVLDRS-1.
The division bench of Justice J.B.Pardiwala and Justice Ilesh J. Vora held that the statement in Form SVLDRS-2 is in contravention of the provisions of the Act and the Rules thereunder and the same deserves to be quashed and set aside and accordingly, it is quashed and set aside. Consequently, the impugned rejection letters are also quashed and set aside.
The court while allowing the petition directed the Designated Committee to decide the application of the writ applicant afresh after giving an opportunity of hearing to the writ applicant and take appropriate decision and pass reasoned order keeping in mind the discussions made by us in this order within 8 days.
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