The Karnataka High Court directed the Designated Committee to accept declaration under Form No.SVLDRS-1 as final.
The petitioner, M/s Jagdish Advertising is an Advertising Agency engaged in the business of providing advertising services.
The Directorate General of GST Intelligence issued a Show Cause Notice, in which the petitioner was asked to show cause as to why the petitioner was not liable to pay a sum of Rs.13,06,07,173/- as service tax; why an amount of Rs.91,87,6327 which had been paid by the petitioner be appropriated towards the demand and why a total CENVAT credit of Rs.4,15,14,081/, taken as per the ST-3 Returns filed in July 2018 and August 2018 for the period from October 2012 to June 2017, should not be denied.
The Parliament enacted a Scheme called Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 as a part of Finance (No.2) Act, 2019. The said Scheme came into force with effect from 01.09.2019. The Scheme consisted of a mechanism which sought to bring to an end the legacy issues relating to payment of service tax. The object of the Scherne was twofold.
Firstly, it was for Dispute Resolution and, secondly it was for granting Amnesty. The Scheme envisaged that if the duty Involved was more than Rs.50 lakhs, the assessee on payment of 50% of the demand would be eligible to receive a Discharge Certificate.
The petitioner took advantage of the said Scheme and made an application as provided in the Scheme on December 28, 2019.
The petitioner contends that thereafter he was notified that the estimated amount of tax liability would be Rs.13,38,22,524/- and he would be liable to pay Rs.5,62,21,162/- by Issuance of the Form No.SVLDRS-2.
He further contends that Cenvat credit of Rs.4,15,14,081/ claimed by him in his declaration was disallowed by the Designated Committee by insertion of a column titled “Remarks” in the Form No.SVLDRS-2
The single judge bench of Justice Sanjay Gowda held that the Designated Committee must accept declaration under Form No.SVLDRS-1 as final and issue a modified Form No SVLDRS- 3 giving credit to the sum of Rs. 4,15,14,081 as deposit and collect the remaining sum as tax Dues and on payment of the said dues, issue the petitioner a Discharge Certificate that the petitioner is entitled to under the Scheme.
Subscribe Taxscan Premium to view the Judgment
