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 in the SVLDRS-1 Form regarding the disclosure of dues. Upon receipt of such an application, the respondent authorities are to pass a reasoned speaking order. The application for correction is to be made within 15 days of obtaining a certified copy of the order, and the authorities are to pass an order within 2 months of receiving the application. The earlier observation regarding benefit under Section 124(1)(e) was clarified not to limit the petitioner's claim. The order dated 28.12.2019 passed by Respondent No. 3 was set aside, and the respondents were directed to pass the required orders afresh on the declaration/application form submitted by the petitioner within 2 months from the date of receipt of the certified copy of the order. The ratio decidendi is that genuine inadvertent errors in filing declarations under amnesty schemes should be allowed to be rectified, especially when there is no loss to revenue and the other party consents.

Facts

The petitioner, M/s New Tech Steel and Alloys Pvt. Ltd., challenged the rejection of their SVLDRS-1 Form by Respondent No. 3. A Show Cause Notice was issued on 04-12-2015, demanding Rs. 1,01,54,295/-. The petitioner deposited Rs. 5,00,000/- during the enquiry period, and the demand was confirmed by an order dated 15.03.2017. An appeal was filed before the Commissioner (Appeals) challenging the demand, with a pre-deposit of Rs. 2,61,572/- made on 02.06.2017, totaling Rs. 7,61,572/- deposited. The petitioner inadvertently entered Rs. 7,61,572/- in the SVLDRS-1 Form instead of the correct total amount of Rs. 10,15,429/-, which included an additional Rs. 2,53,857/- paid for a CESTAT hearing. This discrepancy led to the rejection of their SVLDRS-1 Form on 28.12.2019.

Key Issues

1. Whether the rejection of the petitioner's SVLDRS-1 Form by Respondent No. 3, due to an inadvertent error in furnishing details of pre-deposit, was justified, and if the petitioner should be permitted to submit a corrected Form under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. Petitioner's contention: The error in the SVLDRS-1 Form was a genuine mistake and did not cause any loss to the revenue. They relied on a similar order passed by a Coordinate Bench of the High Court in WP(C) No. 2264/2020. They sought a direction to permit submission of a corrected Form and grant the benefit under the SVLDRS-1 Scheme. Revenue's contention: The learned Assistant Solicitor General of India appearing for the respondents had no objection to the prayer of the petitioner, directing the respondent authorities to permit the petitioner to submit a corrected SVLDRS-1 Form and thereupon pass appropriate orders under the SVLDRS Scheme.