Rejection of SVLDRS Declaration Unsustainable When Co-Noticee Granted Relief: Chhattisgarh HC Directs Authorities to Re-examine Application [Read Order]

The Chhattisgarh High Court has directed the authorities to re-examine the application filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS) holding that rejection of the declaration may not be justified when similar relief has already been extended to a co-noticee in the same proceedings.

The petitioner Manan Iron received a show cause notice dated 22nd March 2007 in the company of MSP Steel & Power Ltd. accusing them of smuggling excisable goods without payment of central exciseduty. The petitioner thereafter made a declaration under the SVLDRS with regard to the settlement of the dispute, but this declaration was refused by the concerned authority.

However, since the advantage of the SVLDRS had been availed by the noticee MSP Steel & Power Ltd. the refusal to grant the same advantage to the petitioner was considered to be wrong. Moreover, the petitioner wanted the issue of a discharge certificate and a refund of ₹13,05,441, which the petitioner had paid in the course of recovery proceedings.

The petitioner stated that once the benefit of the scheme had been granted to one of the notices in relation to the particular show cause notice issued to both of them it was unreasonable for the second noticee not to receive the benefit of the scheme.

However, on the other hand, it was argued by the respondents that the advantage of the SVLDRS has certainly been made available to the co-noticee and that the petitioner can also avail of the same benefit through an application.

The single bench of Justice Rakesh Mohan Pandey observed that the petitioner should be granted an opportunity to avail the benefit under the scheme. Accordingly, the Court permitted the petitioner to file a fresh application and directed the authorities to consider it within a stipulated time frame.

Thus, the writ petition was decided by way of directions and without passing any order on the substance of the matter.

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