M/S New Tech Steel And Alloys PVT. LTD. vs. Union Of INDIA And 5 Ors

Held

The Court held that in view of the agreement between the parties, the writ petition could be disposed of. The Court directed the petitioner to submit an application to the respondent authorities for correction of the information provided in the SVLDRS-1 Form regarding the disclosure of dues. Upon receiving such an application, the respondent authorities were directed to pass a reasoned speaking order within two months from the date of receipt of the application. The Court also clarified that any earlier observation regarding benefit under Section 124(1)(e) would not limit the petitioner's claim to that provision alone, and they were at liberty to claim any other benefit they were entitled to. The order dated December 29, 2019, passed by the Designated Committee was set aside, and the respondents were directed to pass the required orders afresh on the declaration/application form to be submitted by the petitioner. The entire exercise was to be completed within two months from the date of receipt of the certified copy of the order. The petitioner was to submit a certified copy of the order along with the necessary application form on or before October 20, 2020.

Facts

The petitioner, M/s New Tech Steel and Alloys Pvt. Ltd., filed a writ petition challenging the rejection of their SVLDRS-1 Form submitted on December 29, 2019. The Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, was introduced to resolve legacy disputes related to old indirect tax enactments. The petitioner admitted to an inadvertent error in furnishing the amount payable, which was wrongly entered as Rs. 45,35,892/- in the SVLDRS-1 Form. The Designated Committee rejected the petitioner's claim, stating that the amount of total tax dues appeared to be an afterthought and the SVLDRS-1 Form was incorrect. The petitioner contended that this error did not result in any loss of revenue.

Key Issues

1. Whether the Court should direct the respondent authorities to permit the petitioner to submit a corrected SVLDRS-1 Form, considering the error was inadvertent and did not cause revenue loss? (Mixed question of law and fact, concerning the interpretation and application of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019). Petitioner's Arguments: The petitioner argued that the mistake in furnishing the amount payable was due to inadvertence and did not cause any loss to the government exchequer. They relied on a similar order passed by a Coordinate Bench of the High Court in WP(C) No. 2264/2020. They sought permission to submit a corrected Form and receive the benefits under the SVLDRS-1 scheme. Revenue's Arguments: The learned counsel for the respondents (Union of India and others) had no objection to the petitioner's prayer for being permitted to submit a corrected SVLDRS-1 Form and for the respondent authorities to pass appropriate orders thereafter under the SVLDRS Scheme.