The Punjab and Haryana High Court directed the Designated Committee to accept declarations filed under Amnesty Scheme.
For the liquidation of pending disputes and realize outstanding tax/arrears, the respondent through Finance Act, 2019 introduced an Amnesty Scheme known as Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019.
The petitioner, Loyalty Solutions and Research Private Limited filed two applications under Amnesty Scheme seeking waiver of interest and penalty because 100% amount of tax stood already paid.
The Designated Committee constituted under Amnesty Scheme vide impugned order rejected declaration filed with respect to appeal pending before Tribunal on the ground that petitioner has filed single declaration with respect to four show cause notices whereas petitioner in terms of Rule 3 (2) of SVLDR Rules, 2019 was bound to file separate application for each show cause notice. The respondent accepted declaration with respect to 5th show cause notice.
Mr. Tarun Gulati, Counsel for the petitioner contended that the petitioner has rightly filed single application with respect to four show cause notices because as per Rule 6A of CESTAT (Procedure) Rules, 1982 single appeal is maintainable irrespective of number of show cause notices if common order is passed. The object of the scheme is to reduce pendency of litigation and realize outstanding dues.
The division bench of Justice Jaswant Singh and Justice Sant Prakash clarified that The Government is getting revenue without litigation and assessee is getting immunity from partial tax liability as well as interest and penalty, thus there is win-win situation for both sides. The Amnesty Scheme was launched to minimize litigation and respondents seem to unnecessarily drag the matter.
The court while allowing the petition directed the respondent authority to issue discharge certificate subject to compliance of other conditions by the petitioners within four weeks.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
