Venture Professional Hospitality Pvt. Ltd. Vs Union of India (Bombay High Court)
Liberal Interpretation of SVLDR Scheme and Importance of Pre-Cut-Off Quantification: A Pragmatic Approach by the Bombay High Court
Bombay High Court Delivers Landmark Victory for Taxpayer in SVLDR Scheme Dispute; Advocate Shreyas Shivastva and Saurabh Mashelkar Secures Relief
In a significant judgment for the hospitality sector and tax litigants, the Bombay High Court has ruled in favor of M/S Venture Professional Hospitality Pvt. Ltd., quashing an arbitrary rejection of their tax dispute settlement declaration. The case, which centered on the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS), underscores the court’s commitment to the principles of natural justice and the intended purpose of legacy settlement schemes.
The Core of the Dispute
The Petitioner, a provider of outdoor catering services, sought to settle its legacy service tax liabilities under the SVLDR Scheme. Despite the Petitioner admitting its liability of ₹69,26,979 in a statement recorded on June 11, 2019—well before the scheme’s cut-off date of June 30, 2019—the tax authorities rejected their declaration. The authorities claimed the amount had not been “quantified” in time, a stance that would have forced the company into decades of litigation.
A Masterful Legal Strategy by Advocates
Leading the charge for the Petitioner, Advocate Saurabh R. Mashelkar(AOR) and Advocate Mr Shreyas Shivastva the Arguing Council successfully challenged this rejection in a Writ Petition. They argued that the rejection was not only factually incorrect regarding the “quantification” of the debt but was also a gross violation of natural justice, as the Petitioner was never given an opportunity for a hearing before their application was tossed out.
