M/S Geetanjali Metal Industries Thr. vs. Union Of INDIA Thr. (Deleted)
Held
The Court held that the redemption fine is not to be included in the term 'tax' for the purpose of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The Court found that the case was covered by the judgment of the Gujarat High Court in M/s Synpol Products Pvt. Ltd. Vs. Union of India, which was affirmed by the Supreme Court. The Court noted that the Gujarat High Court had considered the Board's circular dated 20/12/2019 and found it contrary to the intent and object of the Scheme. The reasoning was that persons whose cases involve confiscation/fine in lieu of confiscation are not placed in categories ineligible to file declarations under Section 125 of the Finance Act, 2019. The Court also referred to the principle of 'contemporanea exposition' and the Board's own FAQs, press notes, and flyers indicating waiver of interest, penalty, and fine. The Court quashed the inclusion of the redemption fine and directed the estimated amount to be recalculated excluding it. The respondents were directed to issue the discharge certificate subject to fulfillment of all other conditions.
Facts
The petitioner, M/s Geetanjali Metal Industries, filed a writ petition challenging an electronic communication dated 19/05/2020 issued by Respondent No. 2, which estimated their payable amount under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019. The petitioner's grievance was the inclusion of a redemption fine of Rs. 2,09,000/- in the estimated amount of Rs. 2,73,800/-. The petitioner contended that redemption fine should not be included in the term 'tax' for the purpose of the Scheme. This dispute arose from an order passed in Original Case No. 31-32/JC/CEX/GWL/2014-15, against which an appeal was pending when the Scheme was introduced. The petitioner relied on a Gujarat High Court judgment, which was affirmed by the Supreme Court.
Key Issues
1. Whether redemption fine is to be included within the term 'tax' for the purpose of the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019, as per Section 121(c) of the Finance Act, 2019? Petitioner's Arguments: - Redemption fine cannot be included in the term 'tax' under the Scheme. They relied on the Gujarat High Court judgment in M/s Synpol Products Pvt. Ltd. Vs. Union of India, which held that redemption fine is not to be included and that the Board's circular dated 20/12/2019 clarifying otherwise was contrary to the Scheme's intent. They also noted that the Supreme Court affirmed this Gujarat High Court judgment by dismissing the Special Leave Petition. Revenue's Arguments: - When two views of a notification are possible, it should be construed in favour of the Revenue as it is part of a fiscal document. Exemption from taxation must be based solely on the language of the notification, not by implication. The Department had clarified through a circular dated 20/12/2019 that 'fine' and 'redemption fine' denote different things.
Sections Cited
Section 120, Section 121, Section 125, Section 129, Rule 25
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Cause title — parties, addresses and appearances
ORDER Per: Justice Gurpal Singh Ahluwalia This petition, under Article 226 of Constitution of India, has been filed seeking the following reliefs:- "i. A writ: of mandamus/certiorari or any other suitable Writ or Order may kindly be issued; and ii. The impugned electronic communication Annexure-P/1 dated 19/05/2020 passed by the Respondent No.2 by issuing Form SVLDRS-3 may kindly be quashed and the respondent be kindly directed to include the redemption fine in the benefit of the Scheme and further accept the form SVLDRS-1 as submitted by the petitioner. Any other suitable writ or order which this Hon'ble High Court deems fit in the facts and circumstances of the case may also kindly be granted in the interest of Justice."
It is submitted by counsel for petitioner that the question involved in the p
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