Astute Valuers and Consultants Pvt. Ltd. Vs Union of India (Bombay High Court)
Bombay High Court held that issuance of notice for demand of interest and penalty after obtaining discharge certificate under Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 [SVLDRS] is not tenable in law. Writ disposed of, accordingly.
Facts- The petitioner has preferred the present petition. The fulcrum of the issue in the present proceedings relates to the correctness and legality of the Petitioner’s case that after obtaining Discharge Certificate dated 22 February 2020 from the Respondents under the SVLDRS scheme, whether the Petitioner can still be fastened with any liability in terms of interest, by issuing a show cause cum demand notice in respect of a period, for which the Petitioner has already discharged such tax liability.
Conclusion- This is not a case where the Respondents allege any falsity, misstatement, mis-declaration, suppression or the like in the voluntary disclosure made in the declaration filed by the Petitioner, under the SVLDRS. In such situation, when a discharge certificate for the settlement of all tax dues has been issued, the demands raised by the show cause notices issued would be ex facie contrary to law.
Held that a conclusive Discharge Certificate dated 22 February 2020 for the said period was also issued by the third Respondent to the Petitioner. The contention of the Respondents that the show-cause notices were issued pertain to an amount which were belatedly paid prior to taking benefit under the SVLDRS, for the reasons set out above fail to persuade, much less convince us. Thus, the demand of interest and penalty by issuance of show-cause notices dated 16 March 2021, June 2022 are ex-facie contrary to the Finance Act, 2019, and without authority in law. Needless to state that the actions of the Respondents ought to be within the conspectus and realm of Article 265 of the Constitution, which is the sine qua non for imposition of any tax.
