Hi-Lite Projects Private Limited vs. The Joint Commissioner
Held
The High Court held that the petitioner's admitted tax liability in their ST-3 returns, filed before the investigation, constituted 'quantification' as per Section 2(r) of the Finance Act, 2019, read with CBIC Circular No.1071/4/2019-CX.8. The Court set aside the rejection letter and directed the Designated Committee to reconsider the declarations after giving the petitioner an opportunity of hearing, allowing for reopening if false information is found later.
Facts
A service tax assessee, facing an ongoing investigation by GST Intelligence for non-payment of service tax from 2016-17, filed declarations under the Sabka Vikas (Legacy Dispute Resolution) Scheme 2019 (SVLDR Scheme). The authorities rejected the declarations, citing Section 125(1)(e) of the Finance Act, 2019, on the grounds that an investigation was underway and the duty involved had not been quantified by the department before the cut-off date.
Key Issues
Whether the tax liability admitted by an assessee in their returns, prior to an investigation, qualifies as 'quantified' for eligibility under the SVLDR Scheme, and whether an ongoing investigation by the department, without its own quantification, bars an assessee from availing the scheme's benefits.
Sections Cited
Section 125, Section 125(1)(e), Section 2(r) of the Finance Act, 2019, Chapter V of the Finance Act, 2019, CBIC Circular No.1071/4/2019-CX.8
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE N.NAGARESH WEDNESDAY, THE 26TH DAY OF AUGUST 2020 / 4TH BHADRA, 1942 WP(C).No.14135 OF 2020(N) PETITIONER: HI-LITE PROJECTS PRIVATE LIMITED, HI-LITE BUSINESS PARK,HILITE CITY, 3/1043A44,3RD FLOOR, THONDAYAD BYPASS, G A COLLEGE POST, KOZHIKODE-673 014. BY ADVS. SRI.M.P.SHAMEEM AHAMED SRI.CYRIAC TOM RESPONDENTS: 1 THE JOINT COMMISSIONER, CENTRAL TAX AND CENTRAL EXCISE, KOZHIKKODE COMMISSIONERATE, MANANCHIRA, KOZHIKKODE-673 001. 2 THE SENIOR INTELLIGENCE OFFICER, DIRECTORATE GENERAL OF GOODS AND SERVICE TAX INTELLIGENCE, KOCHI ZONAL UNIT, 1ST FLOOR, CENTRAL EXCISE BHAVAN, KATHRIKADAVU, KOCHI-681 017. 3 UNION OF INDIA,(REPRESENTED BY SECRETARY, FINANCE DEPARTMENT DELHI), DEPARTMENT OF REVENUE, MINISTRY OF FINANCE, GOVERNMENT OF INDIA, NORTH BLOCK, NEW DELHI-110 001. 4 THE ADDITIONAL DIRECTOR, DIRECTORATE GENERAL OF GOODS AND SERVICE TAX INTELLIGENCE, KOCHI ZONAL UNIT, 1ST FLOOR,CENTRAL EXCISE BHAVAN, KATHRIKKADAVU, KOCHI- 682 017. IMPLEADED AS ADDL. R4 AS PER ORDER DATED 20-08-2020 IN I.A. 01/2020 R1-R2 BY SREELAL N. WARRIER, SC. R3 BY ADV. SHRI.P.VIJAYAKUMAR, ASG OF INDIA GOVERNMENT PLEADER SMT. K.M. RASHMI T
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