Srinivas V vs. Union Of INDIA

Facts

The petitioner, Srinivas V., challenged an order passed by the respondents on 09.09.2020, which rejected his application for the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme). The respondents had previously issued a notice on 12.09.2018, demanding Rs. 10,83,127, later quantifying service tax payable at Rs. 99,00,000. A subsequent show-cause notice dated 09.12.2019 demanded Rs. 95,94,517 towards a shortfall in service tax, and proposed appropriation of Rs. 57,02,485 already paid by the petitioner. The petitioner filed a declaration under the SVLDR Scheme on 12.12.2019, seeking waiver of the demanded amount, contending that the quantified amount of Rs. 99,00,000 prior to the cut-off date of 30.06.2019, and the subsequent demand being lesser, entitled him to the scheme's benefits.

Held

The Court allowed the petition. It held that the respondents committed an error in rejecting the petitioner's claim for the SVLDR Scheme benefit and in passing the impugned order. The Court reasoned that the respondents had quantified the amount payable by the petitioner as Rs. 99,00,000 on 12.09.2018, well before the 30.06.2019 cut-off date for the SVLDR Scheme. A substantial portion of this amount, Rs. 57,02,485, had already been paid by the petitioner. The Court found that, in light of the scheme's clarifications through Circulars dated 27.08.2019 and 12.12.2019, and consistent with its previous judgments, the petitioner was indeed entitled to the scheme's benefits. Consequently, the impugned orders were set aside, and the matter was remitted back to the respondents for reconsideration of the petitioner's SVLDRS application in accordance with law, considering the circulars and the court's observations, and providing the petitioner with a reasonable opportunity to be heard.

Key Issues

1. Whether the petitioner is entitled to the benefit of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, given that the tax payable was quantified by the respondents at Rs. 99,00,000 on 12.09.2018, prior to the cut-off date of 30.06.2019, and a subsequent demand of Rs. 95,94,517 was made, out of which Rs. 57,02,485 was already paid. Petitioner's arguments: The petitioner contended that since the amount of Rs. 99,00,000 was quantified by the respondents before the cut-off date of 30.06.2019, and the subsequent demand of Rs. 95,94,517 was lesser, out of which a significant portion was already paid, he was eligible for the waiver under the SVLDR Scheme. Reliance was placed on Circulars dated 27.08.2019 and 12.12.2019, and judgments of the Karnataka High Court in M/s. Bioneeds(P) Limited, M/s. Nikitha Build Tech (P) Limited, and M/s. LM Wind Power Blades India PVT. LTD. Respondents' arguments: The respondents argued that there was no merit in the petition and it was liable to be dismissed.