A Division Bench of the Madras High Court has recently set aside the Demand Orders issued to the petitioners Win Power Engineering Limited and True Value Homes India Private Limited and directed the revenue to issue appropriate discharge certificates in accordance with the provisions of Sabka Vishwas (Legacy Disputes Resolution) Scheme, 2019.
The petitioner Win Power Engineering Pvt Ltd filed the instant writ petition at Madras High Court for issuance of a writ of Certiorarified Mandamus calling for the records leading to the issue of impugned order of rejection of SVLDRS declaration and process for issuance of Discharge Certificate in SVLDRS Form 4 as the requisite liability of more than 50% of the tax dues as per the said Scheme has already been paid by the petitioner.
The Single Bench of Madras High Court that heard these petitions earlier had dismissed the petition.
The case was transferred and clubbed with another writ by an order of the Chief Justice, and referred to the division bench.
Vijay Narayanan and Abishek Jenasenan, alongwith G Natarajan represented the petitioners.
It was submitted that the Declaration filed by the respective petitioners have been wrongly rejected as the disqualification under Section 125(1)(e) of the SVLDRS, 2019 was not attracted. Rather, it was submitted that the respective petitioners came within the purview of the
exceptions provided in the aforesaid provisions.
A P Srinivas, H Siddarth and Rajnish Pathiyil appeared for the revenue and contended that there was no
quantification of “tax dues” on or before 30th June, 2019 was
misconceived. The learned Senior Standing Counsel had also submitted certain E-mail exchanges between the petitioner and the Department to demonstrate that there was no quantification of “tax dues” by the petitioner on or before 30th June.
The High Court Division Bench of Justice S Vaidyanathan and Justice C Saravanan observed that, “The petitioner has made a partial quantification of the tax liability.”
It was also observed that “it would not disentitle the petitioner from the purview of SVLDRS, 2019 for the amount remaining unpaid as per the admission in the ST-3 Returns prior to the implementation of SVLDRS, 2019.”
Subsequently, the respondents-revenue were directed to issue Form SVLDRS (3 or 4) the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 subject to the balance amount paid by the petitioner.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
