Planet Automative Pvt. Ltd. & Anr. Vs Union of India & Ors. (Gujarat High Court)
The Gujarat High Court considered a writ petition challenging the rejection of Form SVLDRS-1 filed under the Sabka Vishwas (Legacy Dispute Resolution) Scheme, 2019 (SVLDRS). The petitioners, an authorised dealer of Hyundai cars, sought the benefit of the Scheme after their declaration was rejected on the ground that the service tax liability had not been quantified on or before 30 June 2019.
An inquiry against the petitioners commenced on 21 May 2018, during which an on-the-spot scrutiny indicated unpaid service tax of Rs. 25,73,507. During the investigation, one of the petitioners admitted this liability. Summons were subsequently issued on 20 November 2018, requiring production of documents, which were eventually furnished on 18 December 2019. Upon scrutiny of those records, the authorities found unpaid service tax amounting to Rs. 1,83,11,330, leading to the issuance of a show cause notice on 12 June 2020. The proceedings culminated in an order dated 15 November 2022 imposing a penalty, and the appellate authority later upheld the demand on a taxable value of Rs. 82,06,270 along with interest and penalty by order dated 29 February 2024.
The petitioners had filed Form SVLDRS-1 on 31 December 2019, claiming that their admission of liability during the investigation on 21 May 2018 amounted to “quantification” within the meaning of the Scheme. They relied upon Section 125(1)(e), the definition of “quantified” under Section 121(r), and Clause 10(g) of the CBIC Circular dated 27 August 2019, arguing that a written admission of tax liability during an investigation satisfied the requirement of quantification before the statutory cut-off date. They also contended that the rejection of their declaration without affording an opportunity of hearing violated Section 127(3) of the Scheme because no Designated Committee was constituted.
