M/S Nikitha Buildtech (P) LTD. vs. Union Of INDIA

Facts

The petitioner, M/s. Nikitha Buildtech (P) Ltd., sought benefits under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDR Scheme). They filed a declaration on December 28, 2019, seeking waiver of Rs. 53,88,248/-. The petitioner contended they had admitted and quantified service tax payable as Rs. 50,50,277/- prior to the cut-off date of June 30, 2019. Despite this, the respondents issued a show cause notice on January 7, 2020, followed by a notice in Form SVLDRS-2. The petitioner replied, but the respondents passed an order dated May 6, 2020, rejecting the claim, stating the amount was not quantified as of June 30, 2019. Subsequently, an order-in-original was passed on March 5, 2021. The petitioner challenged both orders.

Held

The Court held that the petitioner is entitled to the benefit under the SVLDR Scheme. The Court found that the petitioner had indeed admitted and quantified the service tax payable as Rs. 50,50,277/- prior to the cut-off date of June 30, 2019, and had also paid this amount. The Court relied on its own prior decision in M/s. Bioneeds India (P) Ltd. Vs. The Commissioner of Central Tax & Others, which established that the Scheme's benefits apply when there is an admission and quantification before the cut-off date, even if an inquiry or investigation is pending. Regarding the discrepancy in amounts, the Court noted that the admitted and paid amount of Rs. 50,50,277/- was significantly in excess of the 50% waiver amount calculated under the Scheme (Rs. 26,94,124/-), thus rendering the respondents' contention on this point untenable. The Court also rejected the respondents' arguments regarding the maintainability of the writ petition and res-judicata, finding that the previous petition was limited in scope and did not involve a final determination of the issues in the current petition. The impugned orders were quashed, and the matter was remitted back to the respondents for reconsideration.

Key Issues

1. Whether the petitioner is eligible for the benefit under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, given that they admitted and quantified the service tax payable prior to the cut-off date of June 30, 2019, despite the respondents' contention that the amount was not quantified as per the Scheme's requirements and a discrepancy existed between the admitted amount and the declaration? (Question of mixed law and fact, turning on the interpretation of the SVLDR Scheme and relevant Board Circulars). Petitioner's arguments: The petitioner argued that they had admitted and quantified the service tax liability prior to the cut-off date. They relied on the High Court's decision in M/s. Bioneeds India (P) Ltd. Vs. The Commissioner of Central Tax & Others, which held that the SVLDR Scheme benefits are applicable even with pending inquiries, provided there is an admission and quantification before the cut-off date. They also contended that the amount paid was in excess of the waiver amount calculated under the Scheme. Respondents' arguments: The respondents argued that the Scheme was not applicable due to a variance between the admitted/quantified amount (Rs. 50,50,277/-) and the amount declared in Form SVLDRS-1 (Rs. 53,88,248/-). They also contended that the writ jurisdiction should not be invoked as the order-in-original was not stayed and that the petition was barred by res-judicata due to a previous disposal of a related writ petition.